Dive Brief:
- Hugo Boss Q3 sales were flat at 1.03 billion euros year over year, or about $1.12 billion, against a “persistently challenging market environment,” according to a Tuesday earnings report.
- Sales in the Americas were flat at 228 million euros for the period, while sales in the region comprising Europe, the Middle East and Africa were up 1% to 662 million euros. Sales in the Asia/Pacific region fell 8% to 110 million euros due to “ongoing weak domestic demand in China,” per the report.
- By channel, brick-and-mortar wholesale sales rose 3% and digital sales were up 6%. Brick-and-mortar retail fell 4%, “affected by muted consumer sentiment,” per the report.
Dive Insight:
It’s been a slow year for Hugo Boss.
The company’s slowdown began in the first quarter of 2024 with single-digit increases in each of its sales channels, which came after a year of steady growth in 2023. In the second quarter, Hugo Boss revised its full year outlook, and said it expected to grow between 1% and 4% in fiscal 2024, down from its previously forecast 3% to 6% growth.
The company confirmed that revised outlook in Q3, and said it continues to expect group sales of between 4.2 billion euros and 4.35 billion euros for fiscal 2024, compared to 4.2 billion euros in 2023. In addition, Hugo Boss said it continues to expect EBIT for full-year 2024 to be between 15% down and 5% up, amounting to 350 million euros, compared to 410 euros in 2023. It expects net income in the same range.
CEO Daniel Grieder said that despite the volatile market backdrop, the company has further enhanced the relevance of its brands and deepened customer engagement. In addition, Grieder said the company has continued to drive brand experiences and product offerings, including offering its omnichannel membership program to customers in Germany and France.
By brand, Boss Menswear was flat for the period, with Boss Womenswear and Hugo sales each up 1%.
“As we approach the important final quarter of 2024, we will continue investing in key strategic initiatives and projects to further strengthen our brands and elevate customer connection with Boss and Hugo,” Grieder said. “At the same time, we remain focused on leveraging our strong operational platform and driving further cost efficiencies. This balanced approach is essential for safeguarding our profitability in 2024 and beyond, while ensuring the long-term success of Hugo Boss.”
