HUGO BOSS Group: financial releases feedhttps://group.hugoboss.com/de/feeds/financial-releases/financial-releases-rss.xmlFinancial releases feed for share price chartHUGO BOSS AGSat, 27 Jul 2024 12:07:07 +0000Sat, 27 Jul 2024 12:07:07 +0000news-4870Mon, 15 Jul 2024 23:00:00 +0000HUGO BOSS ANNOUNCES PRELIMINARY SECOND QUARTER RESULTS AND UPDATES ITS FULL-YEAR 2024 OUTLOOK https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-announces-preliminary-second-quarter-results-and-updates-its-full-year-2024-outlookKey developments Q2 2024
Group sales decrease 1% currency-adjusted to EUR 1,015 million as challenging macroeconomic and geopolitical conditions weigh on global consumer demand Gross margin increases 50 basis points to 62.9% as HUGO BOSS realizes further efficiency gains in its global sourcing activities EBIT amounts to EUR 70 million (-42%), reflecting softer sales trends and strategic investments into the business Inventories improve by -7% amid ongoing tight inventory management, supporting strong free cash flow generation in Q2 of EUR 143 million (+137%) Full-year outlook 2024 updated: Group sales of around EUR 4.20 billion to EUR 4.35 billion (+1% to +4% in Group currency); EBIT of between EUR 350 million and EUR 430 million (‑15% to +5%)
HUGO BOSS updates its financial outlook for full year 2024, factoring in the persistent macroeconomic and geopolitical challenges that are dampening global consumer demand. These headwinds contributed to a further slowdown of industry growth, affecting the top- and bottom-line performance of HUGO BOSS in the second quarter. The overall market environment remained particularly challenging in key markets such as the UK and China.
On a preliminary basis, currency-adjusted Group sales in the second quarter remained 1% below the prior-year level. Also in Group currency, sales declined 1%, amounting to EUR 1,015 million (Q2 2023: EUR 1,026 million). Importantly, revenues of HUGO BOSS continued to significantly exceed 2019 levels by more than 50% in the second quarter, reflecting the successful execution of the Company’s “CLAIM 5” growth strategy over the last three years, which have strongly elevated brand momentum and led to substantial market share gains for BOSS and HUGO.
While the Company’s growth trajectory continued in the Americas (+5%), HUGO BOSS recorded moderate revenue declines in EMEA (-2%) and Asia/Pacific (-4%) in the second quarter. From a channel perspective, the Company maintained its momentum in brick-and-mortar wholesale (+5%) also in the second quarter, while revenues for the Group’s digital business (-4%) came in below the prior-year level, despite solid growth at hugoboss.com. Revenues were also down slightly in brick-and-mortar retail (-2%), reflecting lower store traffic (all growth rates currency-adjusted). The overall softer consumer sentiment also affected the performances across brands. Currency-adjusted revenues for BOSS Menswear remained 2% below the prior-year level, while sales for BOSS Womenswear increased by 2% currency-adjusted. At HUGO, currency-adjusted sales were up 3%, supported by the successful launch of its new, denim-focused brand line HUGO BLUE.
At the same time, operating profit (EBIT) in the second quarter amounted to EUR 70 million on a preliminary basis (Q2 2023: EUR 121 million). Besides the overall softer sales trends, additional marketing investments (+21% to EUR 82 million; Q2 2023: EUR 68 million) and higher brick-and-mortar retail costs (+12% to EUR 238 million; Q2 2023: EUR 213 million) also contributed to the decline in EBIT. These factors were partially compensated by a robust improvement in gross margin in the second quarter (+50 basis points to a level of 62.9%; Q2 2023: 62.3%), as HUGO BOSS continues to successfully drive efficiencies along its global sourcing activities.
From a balance sheet perspective, HUGO BOSS further improved its cash position, with free cash flow amounting to EUR 143 million in the second quarter (Q2 2023: EUR 60 million). This development mainly reflects a further optimization of inventory levels, down 7% currency-adjusted year over year. Consequently, at 24.9%, inventories as a percentage of Group sales came in 340 basis points below the prior-year level (June 30, 2023: 28.3%). At the same time, capital expenditure was up 14% totaling EUR 76 million in the three-month period (Q2 2023: EUR 66 million).
Against the backdrop of the second quarter performance as well as ongoing uncertainties regarding the future development of global consumer sentiment, HUGO BOSS adjusts its financial outlook for fiscal year 2024. Management now expects Group sales to increase by +1% to +4% in Group currency to an amount of around EUR 4.20 billion to EUR 4.35 billion (previously: sales to increase between +3% and +6% to around EUR 4.30 billion to EUR 4.45 billion). This includes the expectation of currencies having a slightly negative impact on top-line development in 2024. At the same time, HUGO BOSS now expects EBIT for full year 2024 to develop in a range of ‑15% to +5%, amounting to around EUR 350 million to EUR 430 million (previously: EBIT to increase by +5% to +15% to around EUR 430 million to EUR 475 million), thus taking into account the overall market volatility.
“We are operating in a period of significant global macro uncertainty, which also affected our performance in the second quarter," says Daniel Grieder, Chief Executive Officer of HUGO BOSS. "Although the timing of any macro recovery remains uncertain, our strategy of consistently investing in our strong brands, BOSS and HUGO, gives us confidence in our ability to continue driving above-trend growth and capturing further market share. By translating this sales performance and focusing even more on operating effectiveness, we have the ability to return to profitable growth in the second half. With the continued execution of our 'CLAIM 5' strategy, we are committed to driving substantial value creation for our shareholders going forward."
HUGO BOSS will publish its full set of second quarter results on August 1, 2024. Also on that day, the Company will host a conference call including a webcast for financial analysts and investors.
If you have any questions, please contact:
Carolin Westermann Senior Vice President Global Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com
Christian Stöhr Senior Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-4774Thu, 02 May 2024 07:30:00 +0000HUGO BOSS RECORDS FURTHER TOP- AND BOTTOM-LINE IMPROVEMENTS IN Q1 AND CONFIRMS FULL-YEAR OUTLOOKhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-further-top-and-bottom-line-improvements-in-q1-and-confirms-full-year-outlook-1 Group sales in Q1 increase 5% to EUR 1,014 million; up 6% currency-adjusted Both brands, all regions, and all channels contribute to sales growth EBIT grows 6% to EUR 69 million; EBIT margin up 10 basis points Inventories decline by 2%, resulting in a free cash flow of plus EUR 13 million Top- and bottom-line outlook for full-year 2024 confirmed
“I am pleased that we delivered further sales and earnings improvements also in the first quarter of 2024,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “In a volatile market environment, we remain focused on rigorously executing our ‘CLAIM 5’ strategy, capi­talizing on our numerous growth opportunities. By leveraging our strong business platform, we remain equally committed to realizing further efficiencies. All of this will enable us to continue our profitable growth trajectory also in 2024.”
In the first quarter of 2024, HUGO BOSS recorded further top- and bottom-line improvements amid a challenging macroeconomic and geopolitical backdrop. This development primarily reflects the ongoing execution of the Company’s “CLAIM 5” strategy, with a particular focus on leveraging important growth opportunities, while at the same time, enhancing effective­ness and efficiency. Consequently, Group sales in the three-month period amounted to EUR 1,014 million (Q1 2023: EUR 968 million). This represents an increase of 6% currency-adjusted, with revenue improvements across both brands, all regions, and all distribution channels. In Group currency, revenues expanded by 5%. At the same time, EBIT grew by 6% to EUR 69 million (Q1 2023: EUR 65 million), implying an EBIT margin expansion of 10 basis points to a level of 6.8% (Q1 2023: 6.7%).
Brand and product initiatives drive growth for BOSS and HUGO
Both BOSS and HUGO recorded robust demand in the first quarter, driven by the success­ful execution of important brand, product, and distribution initiatives as part of “CLAIM 5.” This also includes the launch of the latest Spring/Summer 2024 collections, which have once again been well received among consumers and wholesale partners alike. Two accompanying brand campaigns, innovative marketing activations around the globe, and impactful collaborations further fueled brand relevance in the three-month period. Altogether, these initiatives supported further revenue improvements across both brands. Currency-adjusted sales for BOSS Menswear were up 5%, while revenues at BOSS Womenswear increased by 7% during the first three months of the year. At HUGO, currency-adjusted sales grew by 9%, supported by the successful launch of its new, denim-focused brand line HUGO BLUE.
Revenue improvements across all regions
All regions recorded further sales growth in the three-month period. In EMEA, currency-adjusted revenues increased by 5%, mainly reflecting robust sales improvements in Germany as well as a double-digit plus in emerging markets. In the Americas, revenues were up 11% currency-adjusted with all key markets contributing to growth. This also includes a double-digit uptick in the important U.S. market. Sales in Asia/Pacific were up 4% currency-adjusted in the first quarter. While Southeast Asia & Pacific once again posted double-digit growth, sales in China remained below the prior-year level, reflecting overall muted local demand.
All channels record further sales growth in Q1
From a channel perspective, all consumer touchpoints contributed to growth in the first quarter. The Group’s digital business continued its double-digit growth trajectory with currency-adjusted sales up 10%, reflecting improvements at hugoboss.com as well as an increase in digital sales generated with partners. At the same time, revenues in the Group’s brick-and-mortar retail business grew by 3% currency-adjusted, reflecting both further store productivity improvements as well as moderate space expansion over the past twelve months. Currency-adjusted sales in brick-and-mortar wholesale expanded by 8%, emphasizing wholesale partners’ robust demand for the Spring/Summer 2024 collections. This, in turn, enabled both BOSS and HUGO to further improve visibility and penetration at key department stores.
EBIT up 6% despite further investments into the business
In the first quarter of 2024, HUGO BOSS generated an operating profit (EBIT) of EUR 69 million, 6% above the prior-year level (Q1 2023: EUR 65 million). As a result, the Group's EBIT margin increased by 10 basis points to a level of 6.8% (Q1 2023: 6.7%). This performance was supported by a stable gross margin development as well as slight operating expense leverage.
Decline in inventories supports free cash flow generation
As a result of the measures implemented over the course of 2023 to optimize its inventory levels, HUGO BOSS recorded a further gradual normalization. Year over year, inventories declined by 2% currency-adjusted to a level of EUR 1,034 million (March 31, 2023: EUR 1,065 million). Consequently, at 24.4%, inventories as a percentage of Group sales came in well below the prior-year level, while also further improving compared to the end of fiscal year 2023 (March 31, 2023: 27.7%; December 31, 2023: 25.4%). This, in turn, supported free cash flow generation, amounting to plus EUR 13 million in the first quarter (Q1 2023: minus EUR 120 million).
HUGO BOSS confirms outlook for full-year 2024
Against the backdrop of the Company’s performance in the first quarter, HUGO BOSS confirms its top- and bottom-line outlook for the current fiscal year. The Company remains vigilant with regard to the persistently high levels of macroeconomic and geopolitical uncertainty, which are expected to continue weighing on global consumer sentiment in fiscal year 2024. Accordingly, HUGO BOSS continues to expect Group sales in the reporting currency to increase within a range of 3% to 6% in 2024 to a level of around EUR 4.30 billion to EUR 4.45 billion (2023: EUR 4.2 billion). This includes the expectation of currencies having a slightly negative impact on the Group’s top-line development. At the same time, the Company continues to anticipate EBIT to grow between 5% and 15% to a level of around EUR 430 million to EUR 475 million in 2024 (2023: EUR 410 million). Consequently, the EBIT margin is forecast to increase to a level of between 10.0% and 10.7% (2023: 9.8%).
Financial Publicationsnews-4708Thu, 07 Mar 2024 06:08:10 +00002023 MARKS RECORD YEAR FOR HUGO BOSS – FURTHER TOP- AND BOTTOM-LINE IMPROVEMENTS TARGETED FOR FISCAL YEAR 2024https://group.hugoboss.com/en/investors/publications/financial-releases/publication/2023-marks-record-year-for-hugo-boss-further-top-and-bottom-line-improvements-targeted-for-fiscal-year-2024-1Fiscal year 2023
Currency-adjusted Group sales increase 18% to record level of EUR 4.2 billion EBIT grows 22% to EUR 410 million; EBIT margin up 60 basis points to 9.8% Proposed dividend of EUR 1.35 for 2023; +35% compared to prior year
Outlook 2024
Strong commitment to further executing “CLAIM 5” strategy Management continuity ensured with reappointment of Managing Board members Sales to grow between 3% and 6% to around EUR 4.30 billion to EUR 4.45 billion EBIT to increase by 5% to 15% to around EUR 430 million to EUR 475 million; EBIT margin to improve to a level of between 10.0% and 10.7%
“CLAIM 5” ambition
Focus on leveraging business platform to drive efficiencies and profitability Sales ambition of EUR 5 billion might be slightly delayed amid weak consumer sentiment 2025 EBIT margin target of at least 12% reconfirmed
HUGO BOSS looks back on a successful business performance in fiscal year 2023, marked by strong top- and bottom-line improvements. This development primarily reflects the robust brand momentum of BOSS and HUGO, fueled by the consistent execution of key brand, product, and distribution initiatives as part of the Company’s “CLAIM 5” strategy. By continuing their growth trajectories in 2023, both BOSS and HUGO gained further market shares. In doing so, HUGO BOSS achieved its full year 2023 sales and earnings targets, which had been revised upwards twice during the year.
“2023 was another year of remarkable success for HUGO BOSS,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “The second full year of executing our ‘CLAIM 5’ growth strategy was characterized by strong achievements across all business areas and has accelerated the momentum of our two brands BOSS and HUGO. These successes prove that with ‘CLAIM 5,’ we have the right strategy in place to unlock the full potential of our brands.”
HUGO BOSS records strong top- and bottom-line improvements in 2023
As announced in January 2024, Group sales in fiscal year 2023 increased by 18% on a currency-adjusted basis. In Group currency, sales grew by 15% to a record level of EUR 4,197 million (2022: EUR 3,651 million). For the first time in the history of HUGO BOSS, sales crossed the EUR 4 billion threshold, exceeding its initial mid-term sales target two years ahead of plan. Growth was once again broad-based in nature, with all brands, regions, and distribution channels contributing with double-digit improvements.
At the same time, HUGO BOSS recorded strong bottom-line improvements in 2023, as operating profit (EBIT) increased by 22% to EUR 410 million (2022: EUR 335 million). This development was mainly driven by the top-line performance, which more than offset additional investments in the business. As a result, the Group’s EBIT margin increased by 60 basis points to a level of 9.8% (2022: 9.2%).
Strong commitment to further executing “CLAIM 5” strategy
Following more than two years of successful strategy execution, HUGO BOSS has laid an important foundation for sustainable and profitable growth. In 2024, the Company will build on the regained strength of BOSS and HUGO and further drive brand relevance. Having successfully anchored its position in consumers’ minds in recent years, going forward, HUGO BOSS will put even more emphasis on fostering engagement with consumers, aiming to retain their loyalty in the long term. In this context, HUGO BOSS will continue to invest into compelling brand-building initiatives and enhance its product offerings to fortify the brands’ 24/7 lifestyle images. The recent launch of the BOSS and HUGO Spring/Summer 2024 collections, including the first-time drop of HUGO Blue, thereby marks the next chapter along the Company’s “CLAIM 5” journey.
To foster growth and amplify efficiencies, HUGO BOSS will continue to leverage its high-quality channel mix, ensuring a seamless brand experience and driving synergies across all consumer touchpoints. This also includes the further rollout of the latest BOSS and HUGO store concepts. With more than 200 stores renovated globally, HUGO BOSS has successfully accelerated its omnichannel approach, thus enhancing the shopping experience and increasing store productivity. At the same time, HUGO BOSS will continue to optimize its business operations platform, aimed at driving further effectiveness and efficiencies. As part of this, the Company will put a particular focus on driving digitalization and leveraging the power of artificial intelligence along its global sourcing, production, and logistics activities. Altogether, these strategic initiatives will provide a robust foundation to achieve further top- and bottom-line improvements in the years to come.
Early reappointment of Managing Board members to ensure business continuity
In order to ensure continuity and long-term business success, the Supervisory Board of HUGO BOSS decided on the long-term composition of the Managing Board, with effect of April 1, 2024. As announced on March 6, Daniel Grieder was reappointed Chairman of the Managing Board and CEO of HUGO BOSS until December 31, 2028. At the same time, Oliver Timm, in addition to his role as CSO of HUGO BOSS, was appointed Deputy CEO. He was already reappointed CSO in March 2023 until December 31, 2026. Also on March 6, Yves Müller was reappointed CFO and COO of HUGO BOSS until December 31, 2027. With the long-term and staggered appointment of all Managing Board members, the Supervisory Board is setting an important course for the future of HUGO BOSS, aimed to ensure the continued successful execution of "CLAIM 5."
HUGO BOSS strives for additional market share gains in 2024 and beyond
In light of its regained brand momentum and unwavering commitment to rigorously executing “CLAIM 5,” HUGO BOSS is confident of successfully continuing its growth trajectory. In particular, the Company aims to gain further market shares also in the years to come. In this context, in fiscal year 2024, HUGO BOSS expects Group sales in reporting currency to increase within a range of 3% to 6% to a level of around EUR 4.30 billion to EUR 4.45 billion. In doing so, the Company is factoring in the persistently weak consumer confidence, which is currently curbing global retail spending, in particular in distinct European economies. Increasing geopolitical tensions, including the unabated conflicts in Ukraine and the Middle East, pose additional uncertainty in 2024.
Against the backdrop of the ongoing macroeconomic and geopolitical uncertainties, the Company’s 2025 sales ambition of EUR 5 billion might be slightly delayed. Irrespective of this, HUGO BOSS continues to see considerable growth opportunities as part of “CLAIM 5.” The Company therefore remains fully committed to exploiting these opportunities in 2024 and beyond – be it from a brand, product, distribution, or geographical perspective.
"With 'CLAIM 5,' we have laid an important foundation for sustainable, long-term success," says Daniel Grieder. "We will continue to build on this foundation and capitalize on our numerous growth opportunities, while the macroeconomic and geopolitical backdrop remains uncertain. At the same time, we will further strengthen our operational execution and enhance effectiveness, leveraging our strong business platform to realize significant efficiency gains, while we continue our growth journey."
EBIT margin ambition of at least 12% by 2025 reconfirmed
HUGO BOSS remains all the more confident with regard to its future bottom-line opportunities. The Company continues to target noticeable improvements in profitability, with EBIT expected to grow faster than sales also in the coming years. Accordingly, HUGO BOSS reconfirms its ambition of improving its EBIT margin to a level of at least 12% by 2025. For the current fiscal year, the Company expects EBIT to grow between 5% and 15% to a level of around EUR 430 million to EUR 475 million. Consequently, the EBIT margin is forecast to increase to a level of between 10.0% and 10.7% in 2024.
The anticipated improvements in profitability primarily reflect the Company’s robust organizational and operational platform built in recent years, which will enable HUGO BOSS to further strengthen its operational execution and enhance effectiveness, realizing strong efficiency gains going forward. In particular, the Company aims to further optimize its end-to-end operations. This encompasses leveraging its global sourcing activities, in addition to optimizing vendor allocation and freight modes. Altogether, these effects will provide substantial tailwind to the gross margin development in 2024 already, and thus strongly contribute to the Company’s gross margin target of between 62% and 64% between now and 2025. Also contributing to the Company’s 2025 EBIT margin target is the ongoing commitment to further optimize its operating expense structure. Besides a particular focus on further enhancing cost efficiency in brick-and-mortar retail as well as across headquarter functions, this also includes the overall reduction of collection complexity.
Dividend increase of 35% proposed for fiscal year 2023
In light of the Company’s strong operational and financial performance in 2023, the very solid financial position, and management’s confidence in the Company’s long-term growth opportunities, the Managing Board and Supervisory Board intend to propose to the Annual General Meeting on May 14, 2024, a dividend of EUR 1.35 per share for fiscal year 2023. This corresponds to an increase of 35% year over year (2022: EUR 1.00). The proposal is equivalent to a payout ratio of 36% of the Group’s net income attributable to shareholders in fiscal year 2023, thus fully in line with the Company’s targeted payout range of between 30% to 50% as laid out in “CLAIM 5.”
Further information can be found at group.hugoboss.com. This also includes the HUGO BOSS Annual Report 2023, featuring many interactive elements, captivating stories, and dedicated video statements from all three Managing Board members.
If you have any questions, please contact:
Christian Stöhr Senior Vice President Investor Relations Phone +49 7123 94 – 87563 Email christian_stoehr@hugoboss.com
Carolin Westermann Senior Vice President Global Corporate Communications Phone +49 7123 94 – 86321 Email carolin_westermann@hugoboss.comFinancial Publicationsnews-4663Tue, 16 Jan 2024 07:30:00 +0000HUGO BOSS RECORDS STRONG BUSINESS PERFORMANCE IN Q4 – RAISED TARGETS FOR FULL YEAR 2023 SUCCESSFULLY ACHIEVED https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-strong-business-performance-in-q4-raised-targets-for-full-year-2023-successfully-achieved-1Q4 2023
Currency-adjusted Group sales grow 13% to EUR 1,177 million All brands, regions, and channels contribute to sales growth in Q4 EBIT increases 17% to EUR 121 million on a preliminary basis
Fiscal year 2023
Currency-adjusted sales up 18% to a record level of EUR 4,197 million EBIT increases 22% to EUR 410 million on a preliminary basis Final results and FY 2024 outlook to be published on March 7
“We ended 2023 on a high note, making it a record year for HUGO BOSS,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “The double-digit top- and bottom-line improvements in the important final quarter are all the more remarkable considering the current challenging global market environment. With our strong brand momentum and the ongoing successful execution of our ‘CLAIM 5’ strategy, we have laid a robust foundation for continuing our market-share-winning trajectory and making further progress in becoming one of the top 100 global brands.”
HUGO BOSS looks back on a very successful fourth quarter, building on the strong business performance of the first nine months of 2023. In doing so, the Company continued its broad-based growth trajectory across both brands, all regions, and all channels. This performance first and foremost reflects the ongoing strong brand momentum of BOSS and HUGO, fueled by the successful execution of several marketing, product, and distribution initiatives as part of the Company’s “CLAIM 5” growth strategy. On a preliminary basis, currency-adjusted revenues in the fourth quarter grew by 13% compared to the prior-year period. In reporting currency, sales increased by 10% year over year to EUR 1,177 million (Q4 2022: EUR 1,068 million), making the final quarter of 2023 the most successful one in HUGO BOSS’ history from a top-line perspective.
Brand momentum drives double-digit improvements at BOSS and HUGO
In the fourth quarter, brand momentum was fueled by several brand initiatives implemented over the course of 2023, including the successful launch of the Fall/Winter 2023 collections. Building on the enhanced relevance of BOSS and HUGO, both brands continued their double-digit growth trajectories, thus further expanding market shares worldwide. In the three-month period, currency-adjusted sales for BOSS Menswear were up 13% year over year, while revenues for BOSS Womenswear and for HUGO expanded by 14% each.
Robust growth across all regions with particular strength in the Americas
From a geographical perspective, all regions contributed to revenue growth in the final quarter of 2023. Currency-adjusted revenues in EMEA came in 7% above the prior-year level against a particularly strong comparison base, reflecting solid sales increases in key markets such as Germany and France as well as double-digit improvements in emerging markets. In the Americas, HUGO BOSS maintained its stellar momentum from previous quarters. Consequently, sales increased 18% currency-adjusted in the three-month period, supported by ongoing double-digit growth in the important U.S. market. Revenues in Asia/Pacific increased by 33% currency-adjusted, reflecting strong double-digit sales improvements in both China and South East Asia & Pacific.
Momentum in brick-and-mortar retail and digital business continues
The Group’s digital business successfully continued its double-digit growth trajectory from previous quarters, with currency-adjusted revenue growth of 26%. This performance was driven by double-digit sales increases across all digital touchpoints, including the Group’s digital flagship hugoboss.com and digital revenues generated with partners. Also in brick-and-mortar retail, momentum continued in the final quarter. Currency-adjusted revenues were up 12% compared to the prior year, driven by both store productivity improvements as well as additional selling space. In brick-and-mortar wholesale, currency-adjusted revenues were up 5% year over year, with all three regions contributing to growth. Sales in the license business increased by 15%, led by double-digit growth in the important fragrance business.
2023 marks record year for HUGO BOSS
In light of the robust performance during the fourth quarter, HUGO BOSS achieved its full-year 2023 sales and earnings targets, which had been revised upwards twice during the year. On a preliminary, non-audited basis, HUGO BOSS achieved record sales of EUR 4,197 million in fiscal year 2023, reflecting robust growth of 15% in reporting currency (2022: EUR 3,651 million). Sales thus came in at the upper end of the Company’s most recent guidance range (guidance: increase between 12% and 15% to EUR 4.1 billion to EUR 4.2 billion). On a currency-adjusted basis, this translates into an increase of 18%. This performance was driven by the rigorous execution of the Company’s “CLAIM 5” strategy, thus enabling HUGO BOSS to once more strongly outgrow the global premium apparel market. In doing so, the Company gained further market shares and exceeded its initial 2025 sales target of EUR 4 billion two years ahead of plan.
At the same time, HUGO BOSS recorded strong bottom-line improvements in fiscal year 2023, with the robust top-line performance more than compensating for further investments into the business as part of “CLAIM 5.” Subject to the completion of year-end closing procedures, the Group expects the operating profit (EBIT) to increase by 22% to an amount of EUR 410 million for full year 2023 (2022: EUR 335 million), thus fully in line with the Company’s most recent guidance range (guidance: increase between 20% and 25% to EUR 400 million to EUR 420 million). The fourth quarter is anticipated to contribute an EBIT of EUR 121 million, up 17% year over year (2022: EUR 104 million). As a result, the EBIT margin for full year 2023 is expected to increase to a level of 9.8% (2022: 9.2%).
Fiscal year 2023 thus marked another important milestone for HUGO BOSS towards achieving its 2025 financial ambition, which the Company raised in mid-2023. By 2025, HUGO BOSS aims at generating revenues of EUR 5 billion and an EBIT of at least EUR 600 million, representing an EBIT margin of at least 12%.
HUGO BOSS will publish its final results for 2023 and its financial outlook for the fiscal year 2024 on March 7, 2024.
If you have any questions, please contact:
Carolin Westermann Senior Vice President Global Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com
Christian Stöhr Senior Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-4599Thu, 02 Nov 2023 06:42:12 +0000HUGO BOSS RECORDS STRONG TOP- AND BOTTOM-LINE IMPROVEMENTS IN Q3 AND CONFIRMS FULL-YEAR OUTLOOKhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-strong-top-and-bottom-line-improvements-in-q3-and-confirms-full-year-outlook-1 Currency-adjusted Group sales increase 15% to EUR 1,027 million Brand initiatives drive further momentum for BOSS and HUGO All regions and all channels contribute to sales growth in Q3 EBIT increases to EUR 103 million in Q3; EBIT margin up 20 basis points to 10.0% Top- and bottom-line outlook for full-year 2023 confirmed
“At HUGO BOSS, we look back on a successful third quarter, marked by double-digit top- and bottom-line improvements,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “In an increasingly challenging market environment, we once again claimed our position and gained further market shares globally, driven by our several brand, product, and distribution initiatives. Building on our strong brand momentum, we are well on track to achieve our financial targets and make 2023 another record year for HUGO BOSS."
HUGO BOSS continued its double-digit growth trajectory in the third quarter of 2023, once again posting robust top-line improvements across both brands, all regions, and all consumer touchpoints. This performance, first and foremost, reflects the ongoing momentum of BOSS and HUGO, spurred, in particular, by the successful launch of their Fall/Winter 2023 collections in August as well as exciting fashion events. Consequently, Group sales increased by 15% currency-adjusted to EUR 1,027 million (Q3 2022: EUR 933 million) and by 10% in Group currency, respectively.
Spectacular launch of Fall/Winter 2023 collections drives brand momentum
In the third quarter, BOSS and HUGO continued to build on the strong brand momentum of previous quarters, supported by the launch of the latest Fall/Winter 2023 collections. Those were accompanied by two 360° campaigns, each featuring a diverse all-star cast. Two spectacular fashion events further fueled brand heat in September. The new BOSS collection was showcased at an innovative, tech-inspired event at Milan Fashion Week, strongly propelling awareness and engagement on social media. HUGO, on the other hand, celebrated London Fashion Week with the launch of a joint capsule collection with brand ambassador Bella Poarch, specifically aimed at Generation Z. Altogether, these initiatives resulted in a highly successful activation of BOSS and HUGO fans, and double-digit sales improvements for both brands in the third quarter. Consequently, currency-adjusted revenues for BOSS Menswear increased by 12% year over year, while revenues for BOSS Womenswear were up 24%. At HUGO, currency-adjusted sales even expanded by 25%.
Broad-based growth with double-digit improvements across all regions
Growth in the third quarter was once more broad-based with double-digit revenue improvements across all regions. In EMEA, currency-adjusted sales increased by 12% year over year against a particularly strong comparison base, with all of the region's key markets contributing to growth. In the Americas, momentum further accelerated in the third quarter with an increase of 22% currency-adjusted. This includes a 20% plus in the U.S. market, with all consumer touchpoints contributing to growth. The latter mainly reflects the improved perception of BOSS and HUGO as 24/7 lifestyle brands following the successful implementation of various strategic initiatives as part of “CLAIM 5.” In Asia/Pacific, currency-adjusted revenues came in 21% above the prior-year level. This performance was driven by double-digit sales improvements in both South East Asia & Pacific and China, with the latter posting currency-adjusted growth of 17% year over year.
All consumer touchpoints record further sales improvements
From a channel perspective, all consumer touchpoints contributed to growth in the third quarter of 2023. Revenues in the Group’s digital channel increased by 25% currency-adjusted. All digital touchpoints contributed with double-digit improvements, from the Group’s digital flagship hugoboss.com to digital revenues generated with partners. The brick-and-mortar retail business recorded currency-adjusted growth of 8% compared to the prior year. The vast majority of the increase was related to further store productivity improvements, while additional selling space only had a minor impact. Currency-adjusted sales in brick-and-mortar wholesale even increased by 21%, fueled by wholesale partners’ robust demand for the BOSS and HUGO Fall/Winter 2023 collections. Besides a strong order intake, this performance also reflects a double-digit increase in the Group’s replenishment business. The latter allows HUGO BOSS to react to short-term demand from its wholesale partners.
Robust top-line growth and efficiency gains drive double-digit improvements in EBIT
In the third quarter of 2023, HUGO BOSS increased its operating profit (EBIT) by 12% to EUR 103 million (Q3 2022: EUR 92 million). Consequently, the Group’s EBIT margin increased 20 basis points to 10.0% (Q3 2022: 9.9%). This mainly reflects the robust top-line performance in Q3, enabling the Company to generate operating leverage, first and foremost by driving further efficiency gains in brick-and-mortar retail. At the same time, at 60.7%, the gross margin remained broadly on the prior-year level (Q3 2022: 60.8%).
HUGO BOSS confirms outlook for full-year 2023
In light of the robust financial performance in the third quarter, HUGO BOSS confirms its top- and bottom-line outlook for fiscal year 2023, which had been revised upwards twice during the year. At the same time, the Company remains vigilant with regards to ongoing high levels of geopolitical tensions as well as macroeconomic uncertainties, which could weigh on consumer sentiment also going forward. Accordingly, the Group continues to expect sales in 2023 to increase by between 12% and 15% to a new record level of between EUR 4.1 billion and EUR 4.2 billion. Equally, HUGO BOSS continues to forecast EBIT to increase between 20% and 25% to a level of between EUR 400 million and EUR 420 million in 2023.Financial Publicationsnews-4493Wed, 02 Aug 2023 05:20:29 +0000HUGO BOSS CONTINUES STRONG GROWTH TRAJECTORY IN Q2 AND RAISES FULL-YEAR 2023 OUTLOOKhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-continues-strong-growth-trajectory-in-q2-and-raises-full-year-2023-outlook Currency-adjusted Group sales in Q2 increase 20% to EUR 1,026 million Double-digit growth across all brands, regions, and channels EBIT increases 21% to EUR 121 million in Q2; EBIT margin up 40 basis points to 11.8% FY 2023 outlook raised: Sales to grow between 12% and 15% to a level of EUR 4.1 billion and EUR 4.2 billion; EBIT to increase between 20% and 25%
“After our highly dynamic start to the year, we continued our strong performance also in the second quarter. Momentum once again exceeded our own high expectations, despite the overall challenging and uncertain market environment,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “Following our strategy update in June, both brands BOSS and HUGO successfully maintained their growth trajectory. We will make 2023 a new record year for HUGO BOSS, thus providing a robust foundation for achieving our updated 2025 financial ambition.”
Following its strong start into fiscal year 2023, HUGO BOSS maintained its stellar momentum also in the second quarter, recording further significant top- and bottom-line improvements. As in previous quarters, growth was fueled by several brand, product, and distribution initiatives as part of the ongoing rigorous execution of the Company’s “CLAIM 5” strategy. This led once more to record quarterly sales with broad-based growth across both brands, all regions, and all channels. Consequently, Group sales increased by 20% currency-adjusted to EUR 1,026 million (Q2 2022: EUR 878 million) and by 17% in Group currency, respectively. Revenues continued to significantly exceed pre-pandemic levels (+52% currency-adjusted), with growth further accelerating as compared to the first quarter. Fueled by the very robust top-line momentum, operating profit (EBIT) increased 21% in the second quarter, amounting to EUR 121 million (Q2 2022: EUR 100 million). On the back of these strong results, HUGO BOSS again raises its top- and bottom-line expectations for fiscal year 2023 following the former guidance increase in May.
Brand and product initiatives drive momentum for BOSS and HUGO
Fueled by the bold Spring/Summer 2023 campaigns, BOSS and HUGO continued their robust sales trajectory in the second quarter. As a result, both brands further expanded market shares worldwide, especially among younger consumers. This particularly reflects the ongoing success of the latest BOSS and HUGO collections, which led to strong sell-through rates across all distribution channels. Consequently, BOSS Menswear, BOSS Womenswear, and HUGO posted significant double-digit sales improvements in the second quarter. Currency-adjusted revenues for BOSS Menswear were up 18% year over year, while revenues for BOSS Womenswear even expanded by 32%. At HUGO, currency-adjusted sales were up 21%.
Broad-based growth with double-digit improvements across regions
While the Group’s business in EMEA and the Americas continued to benefit from both robust local consumer demand and a pick-up in tourist business, Asia/Pacific recorded superior growth in the second quarter. Sales in EMEA increased by 15% currency-adjusted in the three-month period. This performance was driven by double-digit improvements in key European markets such as Germany (+19%) and France (+15%), while momentum remained equally strong in the Middle East. Also in the Americas, HUGO BOSS successfully continued its double-digit growth trajectory with currency-adjusted sales up 20%, reflecting double-digit increases across all of the region’s markets. The important U.S. market posted a noticeable increase of 16% currency-adjusted, with all consumer touchpoints contributing to growth. In Asia/Pacific, currency-adjusted revenues came in 41% above the prior-year level. This performance was driven by both sustained double-digit growth in South East Asia & Pacific as well as a further recovery in the business in China following the market’s reopening in late 2022. Currency-adjusted revenues in China thus increased by 56% year over year.
Momentum in digital business accelerates in the second quarter
All channels contributed to the strong top-line performance in the second quarter. In particular, momentum in the Group’s digital business further accelerated, with revenues up 30% currency-adjusted compared to the prior-year level. This performance reflects double-digit improvements across all digital touchpoints, including the Group’s digital flagship hugoboss.com as well as digital revenues generated with partners. Also in brick-and-mortar retail, HUGO BOSS drove robust double-digit sales improvements with revenues up 17% compared to the prior year. While additional selling space only had a minor impact on brick-and-mortar retail growth, the vast majority of the strong performance was related to further store productivity improvements in the second quarter. In brick-and-mortar wholesale, revenues also increased by 17% currency-adjusted, reflecting ongoing strong reception of the latest BOSS and HUGO collections among wholesale partners around the globe.
EBIT up 21% despite further investments into the business
In light of the strong top-line improvements, HUGO BOSS also significantly increased its EBIT in the second quarter, up 21% to EUR 121 million (Q2 2022: EUR 100 million). Consequently, the Group’s EBIT margin increased 40 basis points to 11.8% (Q2 2022: 11.4%). Higher revenues compensated for a decline in gross margin, down 120 basis points to 62.3% (Q2 2022: 63.5%), as well as further investments into the business as part of “CLAIM 5.”
HUGO BOSS raises outlook for full-year 2023
On the back of the strong financial performance in the second quarter, HUGO BOSS once again raises its top- and bottom-line outlook for the current fiscal year. The Company now forecasts Group sales in fiscal year 2023 to increase between 12% and 15% to a new record level of between EUR 4.1 billion and EUR 4.2 billion (prior guidance: increase of around 10% to around EUR 4 billion). At the same time, EBIT is now expected to increase between 20% and 25% to a level of between EUR 400 million and EUR 420 million in 2023 (prior guidance: increase of between 10% to 20% to an amount of EUR 370 million to EUR 400 million). Fiscal year 2023 will thus mark another important milestone for HUGO BOSS towards achieving its updated 2025 financial ambition, which the Company only raised back in June. By 2025, HUGO BOSS is confident of generating revenues of EUR 5 billion and EBIT of at least EUR 600 million, representing an EBIT margin of at least 12%.
If you have any questions, please contact:
Carolin Westermann Vice President Global Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com
Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-4463Thu, 15 Jun 2023 05:24:31 +0000HUGO BOSS PRESENTS UPDATE ON “CLAIM 5” – 2025 SALES AMBITION RAISED TO EUR 5 BILLIONhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-presents-update-on-claim-5-2025-sales-ambition-raised-to-eur-5-billion-1Strategic progress since introduction of “CLAIM 5”:
BOSS and HUGO with significant market share gains, driven by acceleration in top-line growth following comprehensive branding refresh Strong improvement in brand value, reflecting surge in global brand relevance 24/7 lifestyle image successfully fostered by leveraging all brand lines Launch of Digital Campus significantly enhances data analytics capabilities Best-in-class omnichannel experience leads to broad-based momentum globally Strong initial progress in establishing state-of-the-art operations platform
New 2025 financial ambition:
Sales target raised to EUR 5 billion by 2025 (+11% CAGR vs. 2022) EBIT now set to reach at least EUR 600 million (EBIT margin of at least 12%) Higher gross margin to more than offset additional business investments Cumulative free cash flow of around EUR 2.5 billion targeted between 2021 and 2025
“With ‘CLAIM 5,’ we have introduced the right strategy at the right time. Thanks to the dedication and passion of our teams, we celebrated an impressive comeback and delivered exceptional results. This will enable us to reach our mid-term financial ambition of EUR 4 billion already this year, two years ahead of plan,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “And we have everything needed to continue our success story. That is why today we are increasing our top- and bottom-line ambition. We aim to achieve revenues of EUR 5 billion and an EBIT margin of at least 12% by 2025.”
HUGO BOSS today is providing an update on its “CLAIM 5” growth strategy and its 2025 financial ambition. Two years after introducing “CLAIM 5,” the Company looks back on significant progress achieved across all five strategic priorities. Driven by the powerful and rigorous strategy execution and supported by its bold branding refresh initiated in early 2022, momentum for both BOSS and HUGO has since accelerated sharply. In doing so, both brands have strongly expanded market shares worldwide and made significant progress in increasing brand relevance.
Consequently, HUGO BOSS is raising its 2025 top- and bottom-line ambition. While it aims to achieve its previous mid-term sales target of EUR 4 billion already this year, HUGO BOSS is now confident of generating revenues of around EUR 5 billion by 2025. This represents a strong compound average growth rate (CAGR) of +11% compared to fiscal year 2022 (2022: EUR 3.7 billion), thus well above the anticipated industry growth. The superior top-line ambition is coupled with significant improvements in EBIT, which is forecast to grow to a level of at least EUR 600 million by 2025 (prior target: around EUR 480 million), representing a strong CAGR of at least 21% compared to fiscal year 2022. Consequently, HUGO BOSS now targets an EBIT margin of at least 12% by 2025 (prior: around 12%). The increased EBIT margin target reflects the Company’s updated gross margin projections, exceeding initial expectations. The latter is now anticipated to range between 62% and 64% until 2025 (prior: 60% to 62%), reflecting the ongoing strong surge in brand momentum as well as additional efficiency gains to be realized in operations.
To deliver on its 2025 financial targets, HUGO BOSS will continue to invest into its business and rigorously execute its “CLAIM 5” strategy. In this context, the Company is committed to making further progress along its five strategic claims, to leverage global growth opportunities and drive significant top- and bottom-line improvements through 2025 and beyond.
CLAIM 1 – “Boost Brands”: Building on strong momentum to further drive brand relevance
Following the successful branding refresh, HUGO BOSS will now build on the stellar brand momentum of BOSS and HUGO to further anchor its position in the consumers’ minds and drive brand power in the coming years. This is directly linked to the Company’s ambition to become one of the top 100 global brands. To further increase brand relevance, particularly among the younger audience, HUGO BOSS will continue to pursue and develop its two-brand strategy. Also in the years to come, this will be supported by two clearly distinguishable marketing strategies for BOSS and HUGO aimed at activating consumers across all touchpoints and maximizing consumer impact. In this context, the Company will continue its successful digital-first marketing strategy, supported by star-studded campaigns, strong collaborations, and unique brand events. HUGO BOSS will therefore continue to keep its marketing investments at a level between 7% and 8% of Group sales until 2025 (2022: 7.9%). Consequently, by 2025 the Company is now targeting sales of around EUR 3.5 billion for BOSS Menswear (prior: EUR 2.6 billion), around EUR 500 million for BOSS Womenswear (prior: EUR 400 million), and around EUR 1 billion for HUGO (prior: EUR 800 million).
CLAIM 2 – “Product is Key”: Fostering 24/7 lifestyle image by leveraging brand lines
HUGO BOSS will continue to put strong emphasis on further enhancing both brands’ 24/7 lifestyle images, ensuring that its customers are perfectly dressed for every occasion. To live up to this target, the Company will continue to fully exploit the potential of its BOSS Black, BOSS Orange, and BOSS Green brand lines for the Menswear collection, and leverage the exclusive BOSS Camel line introduced in late 2022. Further building on these successes, BOSS is reintroducing its Orange line to Womenswear while also introducing the Camel line. Products ranging from high-end tailoring to smart casual and active lifestyles will therefore from now on be part of both BOSS Menswear and BOSS Womenswear. In addition, with the upcoming launch of the HUGO BLUE brand line in early 2024, HUGO BOSS will explicitly seize opportunities in denimwear to further win over the Gen Z and young-minded consumers. Both brands, BOSS and HUGO, will continue to maintain their superior price-value proposition, thus fostering their unique positioning in the premium / affordable luxury segment.
CLAIM 3 – “Lead in Digital”: Capitalizing on data-driven insights to drive efficiencies
Leveraging the full potential of digitalization will remain a key driver to deliver on the Company’s vision of becoming the leading premium tech-driven fashion platform worldwide. Over the past two years, HUGO BOSS achieved strong progress in further digitalizing important business activities – from digital trend detection and product creation to AI-enabled pricing and innovative experiences in the metaverse – thereby laying the foundation for further initiatives. The HUGO BOSS Digital Campus, physically inaugurated in Porto, Portugal, this year, is at the heart of the Company's digital journey as it significantly expands its data analytics capabilities. By capitalizing on data-driven insights, the Digital Campus will further drive meaningful insights and efficiencies along the value chain, while also supporting the goal of creating a seamless customer experience across all consumer touchpoints.
CLAIM 4 – “Drive Omnichannel”: Leveraging high-quality channel mix to drive growth
Over the past two years, HUGO BOSS has made substantial progress in translating its regained brand power into all consumer touchpoints and providing its customers with a best-in-class omnichannel experience. Going forward, the Company will continue to fully leverage its high-quality channel mix on a global scale. Against this backdrop, HUGO BOSS aims to increase revenues in brick-and-mortar retail to more than EUR 2.5 billion by 2025 (prior: around EUR 2 billion). In this context, the Company is targeting store productivity improvements of at least 3% per year, supported by investments of now up to EUR 600 million (prior: EUR 500 million) between 2021 and 2025 to modernize, further optimize, and selectively expand its global retail footprint. The latter includes the further rollout of the latest and more digitalized BOSS and HUGO store concepts as well as growing the Company’s full-price store network to around 500 points of sale by 2025 (2022: 470). At the same time, HUGO BOSS will continue to build on its regained strength in brick-and-mortar wholesale, where both its brands successfully increased visibility and market presence at key European and U.S. department stores. To take its business in emerging markets to the next level, HUGO BOSS will further strengthen its global franchise business by increasing the total number of full-price franchise stores from 300 to around 500 over the coming years. Overall, the Company is now targeting brick-and-mortar wholesale sales of around EUR 1.3 billion by 2025 (prior: around EUR 1 billion). The digital business is expected to continue its double-digit growth trajectory in the years to come, with digital sales still expected to mount up to more than EUR 1 billion by 2025. In this regard, HUGO BOSS will focus on further driving traffic and conversion at its digital flagship hugoboss.com while, at the same time, fostering growth with its digital partners. The license business is also still expected to contribute up to EUR 200 million to Group revenues by 2025.
From a regional perspective, HUGO BOSS will continue to drive its broad-based momentum across all geographies, thereby further increasing market shares by 2025. The Company remains committed to fully exploiting its strong momentum in EMEA, where sales are forecast to grow at a mid to high-single-digit CAGR (2022–2025) to a level of more than EUR 2.8 billion, with strong contributions expected from both key markets and important growth markets such as the Middle East. In the Americas, revenues are projected to grow at a high single-digit CAGR (2022–2025), mounting up to around EUR 1 billion by 2025. In particular, the Company will continue the successful push of its 24/7 brand image in the important U.S. market, where it recorded exceptionally strong momentum over the past two years. In Asia/Pacific, revenues are set to grow at a low double-digit CAGR (2022–2025) with the region’s revenue share to expand from currently 13% to around 20% by 2025, implying a revenue level of around EUR 1 billion. In this regard, unleashing the brands’ full potential in China will continue to be of particular importance. In addition, HUGO BOSS is equally committed to leveraging its full potential across South East Asia & Pacific.
CLAIM 5 – “Organize for Growth”: Establishing strong operations platform for future growth
Over the past two years, HUGO BOSS has successfully transformed its operating model to a platform approach and implemented a streamlined, brand-led organizational setup that enables profitable growth and ensures rigorous strategy execution at a global level. In order to foster growth and further drive efficiencies going forward, the Company will step up investments into its supply chain. HUGO BOSS has recently launched its important Digital Twin initiative, aimed at enabling smart decision-making through a tech-driven business operations platform and being a key enabler to meeting consumer demand even better in the future. While further increasing the stability and transparency of its global supply chain, the Digital Twin will positively contribute to the Company’s future growth, profitability, and sustainability ambitions. At the same time, HUGO BOSS is expanding its global logistic capacities by around 40% as well as continuing its nearshoring initiatives by bringing production even closer to EMEA and the Americas.
Sustainability efforts further intensified for a planet free of waste and pollution
Sustainability continues to be at the heart of “CLAIM 5” – a cause that is essential to the Company’s corporate responsibility and ongoing business activities. HUGO BOSS will therefore further intensify its efforts in this important area, focusing primarily on making its contribution to a planet free of waste and pollution. As part of its sustainability strategy, HUGO BOSS will, among other things, strongly increase its circularity initiatives, leverage nature-positive materials, fight microplastic, and keep pushing towards zero emissions.
“Our ‘CLAIM 5’ strategy provides us with a strong foundation for the sustainable, long-term success of HUGO BOSS,” says Daniel Grieder, CEO of HUGO BOSS. “Thanks to our powerful organizational setup, our unwavering commitment to sustainability, and our highly motivated and passionate teams worldwide, we are all the more confident of driving significant top- and bottom-line improvements also in the coming years.”
Ongoing rigorous execution of "CLAIM 5" to drive sustainable shareholder value creation
With its compelling "CLAIM 5" strategy, HUGO BOSS has set the course to further lead the Company into a successful future. In this context, the ongoing focus on driving superior top-line growth and significant margin expansion is expected to result in strong cumulative free cash flow of around EUR 2.5 billion between 2021 and 2025 (prior: around EUR 2 billion). Fully in line with its capital allocation framework, the majority of free cash flow will be either reinvested into the business or distributed to shareholders through regular dividend payments, with the Company’s payout ratio to remain in a range between 30% and 50% of net income attributable to shareholders until 2025.
To deliver on its increased 2025 financial ambition, the rigorous execution of “CLAIM 5” will continue to take center stage. HUGO BOSS will build on the strong brand momentum of BOSS and HUGO and leverage global growth opportunities from a brand, regional, and channel perspective. In doing so, HUGO BOSS is well positioned to keep gaining market shares, driving significant bottom-line improvements, and generating superior free cash flow to ensure sustainable shareholder value creation by 2025 and beyond.
If you have any questions, please contact:
Carolin Westermann Vice President Global Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com
Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-4418Thu, 04 May 2023 05:46:37 +0000HUGO BOSS RECORDS EXCELLENT START TO 2023 AND RAISES FULL-YEAR OUTLOOKhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-excellent-start-to-2023-and-raises-full-year-outlook-1Quarterly Statement for Q1 2023 Metzingen, May 4, 2023
Currency-adjusted Group sales in Q1 increase 25% to EUR 968 million Double-digit improvements across both brands, all regions, and all channels EBIT amounts to EUR 65 million in Q1, 63% above the prior year FY 2023 outlook raised: sales to grow ~10% to a level of around EUR 4 billion; EBIT to increase to an amount of between EUR 370 million and EUR 400 million (+10% to +20%)
“We look back on an excellent start to the year, as we further accelerated brand momentum around the globe,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “Following our strong performance in the first quarter, we remain all the more confident in the continued success of ‘CLAIM 5.’ We will make 2023 yet another record-breaking year for our Company, as we aim to achieve our mid-term sales target of EUR 4 billion already this year, thus significantly earlier than expected.”
Building on the remarkable momentum in fiscal year 2022, HUGO BOSS continued its strong financial and operational performance in the first quarter of 2023, posting significant top- and bottom-line improvements. Group sales amounted to EUR 968 million (Q1 2022: EUR 772 million), representing an increase of 25% both currency-adjusted and in Group currency. Consequently, revenues once again strongly exceeded pre-pandemic levels (+44% currency-adjusted), with momentum further accelerating as compared to the final quarter of 2022. The powerful start to the year was driven by the continued rigorous execution of the Company’s “CLAIM 5” strategy, which provided substantial tailwinds throughout the quarter. As a result, growth was once more broad-based in nature with double-digit sales increases across both brands, all regions, and all consumer touchpoints.
Successful launch of Spring/Summer 2023 collections drives momentum globally
In January 2023, one year after introducing the bold branding refresh, BOSS and HUGO successfully launched their Spring/Summer 2023 collections, which have once again been very well received by both consumers and wholesale partners worldwide. Thanks to the accompanying global brand campaigns as well as several fashion events, both brands were able to create further buzz throughout the quarter. In particular, in March, BOSS showcased its latest collection at a star-studded “see now, buy now” event in Miami. Selected fashion show pieces were also presented virtually later that month at Metaverse Fashion Week. Fueled by the ongoing strong brand momentum, the Company recorded significant double-digit growth in currency-adjusted sales for BOSS Menswear (+23%), BOSS Womenswear (+28%), and HUGO (+31%) during the first three months of the year.
Double-digit sales improvements across all regions
In the first quarter, all regions recorded double-digit sales improvements, fueled by ongoing robust consumer demand. In EMEA, currency-adjusted revenues increased by 21% year over year, reflecting robust double-digit growth in key markets such as Germany (+28%) and France (+17%), as well as a particularly strong performance in growth markets such as the Middle East. With revenues up 38% currency-adjusted, momentum in the Americas further accelerated both year over year as well as versus pre-pandemic levels, as all of the region’s markets continued their strong double-digit sales trajectories. This also includes ongoing robust momentum in the U.S. market across channels, with currency-adjusted sales up 31% overall. The Group’s business in Asia/Pacific also recorded a powerful start to the year with sales returning to strong double-digit growth of 31%. This performance was driven by both sustained double-digit improvements in South East Asia & Pacific as well as a significant uptick in consumer sentiment in China following the market’s reopening in late 2022 after long-lasting COVID-19-related restrictions. As a result, sales in China came in well above the prior-year level, up 25% currency-adjusted.
Broad-based growth across all consumer touchpoints
From a channel perspective, growth in the first quarter was also broad-based, with all consumer touchpoints recording double-digit sales improvements. The Group’s digital business successfully continued its robust growth trajectory with currency-adjusted sales up 22%, reflecting strong double-digit improvements across all digital touchpoints. In particular, revenues generated via the Group’s digital flagship hugoboss.com increased noticeably, supported by the successful relaunch of the HUGO BOSS app in February. At the same time, the Group’s brick-and-mortar retail business also had an excellent start to the year, recording double-digit sales improvements across all regions. Overall, currency-adjusted revenues in brick-and-mortar retail increased by 26% in the first quarter. On the other hand, HUGO BOSS also recorded a strong uptick in brick-and-mortar wholesale with currency-adjusted sales up 26%, reflecting ongoing healthy demand from partners around the globe.
EBIT up 63% despite ongoing investments into the business
In the first quarter of 2023, HUGO BOSS generated an operating profit (EBIT) of EUR 65 million, representing a significant increase of 63% compared to the previous year (Q1 2022: EUR 40 million). As a result, the Group's EBIT margin increased by 160 basis points to a level of 6.7%. This performance was driven by the significant top-line improvements, which more than offset a slight decline in gross margin, down 30 basis points to a level of 61.4%, as well as further investments into the business as part of “CLAIM 5.”
HUGO BOSS raises outlook for full-year 2023
In light of the strong financial performance in the first quarter, HUGO BOSS raises its top- and bottom-line outlook for the current fiscal year. Accordingly, while taking into account persistently high macroeconomic and geopolitical uncertainties, HUGO BOSS now expects Group sales in 2023 to increase by around 10% to a level of around EUR 4 billion (prior: increase at a mid-single-digit percentage rate), with all regions set to contribute to growth. At the same time, EBIT in 2023 is now expected to increase within a range of +10% to +20% to an amount of between EUR 370 million and EUR 400 million (prior: increase within a range of +5% to +12% to an amount of between EUR 350 million and EUR 375 million). Ongoing investments in its products, brands, and digital expertise as part of “CLAIM 5” are set to be more than offset by an at least stable gross margin development in 2023 as well as further efficiency gains, in particular when it comes to its brick-and-mortar retail store network.
HUGO BOSS will host Investor Day on June 14 and 15
Following the strong start to the year, HUGO BOSS remains all the more confident in the continued momentum of its “CLAIM 5” growth strategy. On June 14 and 15, the Company will thus present an update on “CLAIM 5” and its mid-term financial ambition as part of an Investor Day, as HUGO BOSS aims to continue delivering sustainable revenue growth and operating leverage supporting its bottom-line ambitions also going forward. The Investor Day will take place at the Group’s headquarters in Metzingen, Germany.
If you have any questions, please contact:
Christian Stöhr Vice President Investor Relations Phone: +49 7123 94 – 87563 Email: christian_stoehr@hugoboss.com
Carolin Westermann Vice President Global Corporate Communications Phone: +49 7123 94 – 86321 Email: carolin_westermann@hugoboss.comFinancial Publicationsnews-4372Thu, 09 Mar 2023 06:28:03 +0000HUGO BOSS WITH RECORD YEAR 2022 – POWERFUL EXECUTION OF "CLAIM 5" PAVES WAY FOR FUTURE TOP- AND BOTTOM-LINE GROWTHhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-with-record-year-2022-powerful-execution-of-claim-5-paves-way-for-future-top-and-bottom-line-growthFull year 2022
Currency-adjusted Group sales increase 27% to new record level of EUR 3.7 billion Broad-based growth across both brands, all regions, and all consumer touchpoints EBIT grows 47% to EUR 335 million driven by strong top-line momentum
Outlook 2023
Successful execution of “CLAIM 5” remains primary focus also in 2023 Group sales expected to grow at a mid-single-digit percentage rate EBIT to increase by +5% to +12% to a level of EUR 350 million to EUR 375 million
“2022 was an outstanding year for HUGO BOSS,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “Thanks to the rigorous execution of our ‘CLAIM 5’ strategy, we made 2022 a record year for our Company with broad-based momentum across brands, regions, and consumer touchpoints. Most importantly, our bold branding refresh impressively fueled brand power of BOSS and HUGO. In achieving this, we have laid a strong foundation to further leverage the great potential of HUGO BOSS going forward.”
For HUGO BOSS, fiscal year 2022 represented an important milestone along its “CLAIM 5” growth strategy, marking the first full year of successful strategy execution. In this context, the Company made significant progress across key business areas – whether from a brand, product, or sales perspective – which spurred its operational and financial performance. Above all, the new and powerful brand images of BOSS and HUGO drove momentum throughout the year, resulting in strong full-price sales and enabling both brands to success­fully expand market shares around the globe. All this led to significant top- and bottom-line improvements for HUGO BOSS in fiscal year 2022. Supported by a stellar performance also in the final quarter of the year, the Company ultimately exceeded its full year sales and earnings targets, which had been revised upwards twice during the year.
As announced in January 2023, sales in fiscal year 2022 increased by a strong 27% currency-adjusted to a record level of EUR 3,651 million. This means, for the first time in the history of HUGO BOSS, the Company exceeded the EUR 3 billion threshold (2021: EUR 2,786 million). In Group currency, this translates into an increase of 31%. This robust performance was achieved despite high levels of macroeconomic and geopolitical uncertainty in fiscal year 2022, including global supply chain disruptions, the economic implications of the war in Ukraine, and long-lasting pandemic-related restrictions in China.
EBIT grows 47% despite significant investments into the business
In 2022, HUGO BOSS also recorded significant bottom-line improvements as the robust top-line performance more than compensated for ongoing brand, product, and digital invest­ments as part of “CLAIM 5.” This also includes a step-up in marketing investments of 41%, largely reflecting the successful campaigns and fashion events over the course of the year, which drove brand relevance globally. Overall, EBIT increased by a strong 47% to an amount of EUR 335 million (2021: EUR 228 million). Consequently, the Group’s EBIT margin expanded noticeably, up 100 basis points to a level of 9.2% (2021: 8.2%), largely reflecting operating ex­pense leverage in brick-and-mortar retail. At the same time, the Group’s gross margin remained stable at 61.8%, as the overall higher share of full-price sales compensated for negative external effects caused by elevated sourcing costs and unfavorable currency effects.
Execution of “CLAIM 5” remains primary focus in 2023
“Building on our regained brand power, in 2023 we will work relentlessly to further drive top- and bottom-line growth,” says Daniel Grieder. “Thanks to our excellent team, our strong brands BOSS and HUGO, and the power of ‘CLAIM 5,’ I have every confidence that we are heading into another successful year. Together, we will continue to pursue our ambition to ultimately become one of the top 100 global brands.”
For HUGO BOSS, fiscal year 2023 represents a further important milestone in achieving its 2025 financial ambitions. The main focus this year will therefore continue to be on the deter­mined execution of “CLAIM 5.” This includes, above all, building on the strong brand power gained in 2022. In this context, HUGO BOSS remains fully committed to winning over consumers from around the globe through engaging marketing campaigns, exciting brand events, and inspiring collections, all aimed at further boosting brand power. Only recently, BOSS and HUGO celebrated the launch of their new Spring/Summer 2023 collections, with the respective global brand campaigns once more building on the two powerful mottos #BeYourOwnBOSS and #HUGOYourWay. Both collections are resonating extremely well with global consumers as reflected by strong initial sell-through rates. Likewise, HUGO BOSS looks back at a robust order intake from its wholesale partners for much of 2023, providing further evidence of the success of the brands’ new and unique “look and feel.” Through its diverse product mix, HUGO BOSS fully lives up to its promise to dress customers from head to toe, and for every occasion 24/7.
In line with the Company’s vision of being the leading premium tech-driven fashion platform worldwide, HUGO BOSS will push ahead with the further digitalization of its business model in 2023. By fully leveraging the power of data, the Company will reduce collection complexity and further enhance operational efficiency. In addition, HUGO BOSS will link digital and physical commerce even more closely to offer its customers a best-in-class omnichannel experience. On that note, the recent relaunch of the strongly improved HUGO BOSS app, significantly enhancing the mobile shopping experience, also plays an important role. At the same time, a strong focus remains on the ongoing modernization of the the Company’s global store network to drive store productivity. Already today, consumers can experience brand-led, innovative retail concepts at more than 200 points of sale worldwide, with more openings and renovations to follow. This also includes the recent reopening of BOSS on London’s Regent Street, and the planned renovation of the BOSS store at Dubai Mall later this year.
Further top- and bottom-line improvements anticipated for 2023
All strategic initiatives will provide a robust foundation for fostering the strong top-line momentum gained in 2022. Against the backdrop of ongoing macroeconomic and geopolitical uncertainty, HUGO BOSS expects Group sales in 2023 to increase at a mid-single-digit percentage rate, with all regions expected to contribute to growth. At the same time, HUGO BOSS forecasts that it will increase its EBIT in 2023 within a range of +5% to +12% to an amount of between EUR 350 million and EUR 375 million. In light of ongoing investment in products, brands, and digital expertise, all part of “CLAIM 5,” HUGO BOSS will continue to drive efficiency gains, in particular when it comes to its brick-and-mortar retail store network.
Dividend increase of 43% proposed for fiscal year 2022
The Managing Board and Supervisory Board intend to propose to the Annual Shareholders’ Meeting on May 9, 2023 a dividend of EUR 1.00 per share for fiscal year 2022. This corresponds to an increase of 43% year over year (2021: EUR 0.70), reflecting the Company’s outstanding operational performance in 2022, its very robust financial position, and management’s confidence in the continued success of “CLAIM 5.” The proposal is equivalent to a payout ratio of 33% of the Group’s net income attributable to shareholders in fiscal year 2022, thus fully in line with the Company’s targeted payout range of between 30% to 50% as set out in “CLAIM 5.”
Further information can be found at group.hugoboss.com. This also includes the digital version of the HUGO BOSS Annual Report 2022 with many interactive features, exciting stories, and dedicated video statements from all three Managing Board members. Financial Publicationsnews-4292Tue, 17 Jan 2023 07:30:00 +0000HUGO BOSS EXCEEDS FULL-YEAR 2022 TARGETS AS STRONG MOMENTUM CONTINUES IN Q4https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-exceeds-full-year-2022-targets-as-strong-momentum-continues-in-q4-1Q4 2022
Currency-adjusted Group sales grow 15% to EUR 1,068 million; +29% vs. 2019 Ongoing robust momentum in EMEA1 (+18%) and the Americas (+17%) EBIT increases 4% to EUR 104 million on a preliminary basis
Fiscal year 2022
Currency-adjusted sales up 27% to a record level of EUR 3,651 million EBIT increases 47% to EUR 335 million on a preliminary basis Final results and FY 2023 outlook to be published on March 9
“2022 was truly a record year for HUGO BOSS. Thanks to an exceptionally strong final quarter, we even exceeded our own high expectations,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “Our successful comeback in 2022 is testament to the rigorous and determined execution of our ‘CLAIM 5’ strategy. In particular our bold branding refresh impressively fueled the brand power of BOSS and HUGO throughout the year. Building on this strong foundation, we will continue to pursue our ambition to ultimately become one of the top 100 global brands.”
Following its stellar business performance in the first nine months of 2022, HUGO BOSS maintained its strong momentum also in the final quarter of the year. On a preliminary basis, currency-adjusted revenues in the fourth quarter increased by 15% compared to the prior-year period, thus exceeding 2019 levels by 29%. In reporting currency, sales grew by 18% year over year to EUR 1,068 million (Q4 2021: EUR 905 million). Quarterly sales thus exceeded the EUR 1 billion mark for the first time in the history of HUGO BOSS. This performance reflects the ongoing successful execution of various key brand, product, and sales initiatives as part of the Company’s “CLAIM 5” strategy, which drove robust consumer demand for BOSS and HUGO also throughout the fourth quarter.
Ongoing brand momentum drives double-digit sales growth across all brands
Across brands, BOSS Menswear, BOSS Womenswear as well as HUGO posted double-digit sales improvements also in the fourth quarter. Brand heat continued to be driven by numerous initiatives successfully executed during the year, including the bold marketing campaigns and acclaimed fashion events for BOSS and HUGO. Consequently, currency-adjusted sales for BOSS Menswear and BOSS Womenswear each grew by 14% in the fourth quarter. Also HUGO continued its double-digit growth trajectory, posting a sales increase of 18% compared to the prior-year period. On a three-year-stack basis, currency-adjusted revenues for BOSS Menswear (+27%), BOSS Womenswear (+24%), and HUGO (+46%) also grew at strong double-digit rates, with momentum at BOSS Womenswear and HUGO even accelerating compared to previous quarters.
Double-digit growth trajectory continues in EMEA and the Americas
From a geographical perspective, sales growth in the fourth quarter remained particularly strong in EMEA and the Americas. Currency-adjusted revenues in EMEA increased by 18% year over year. Development was spurred by robust revenue improvements across key markets including the UK, France, and Germany, as well as a particularly strong performance in growth markets such as the Middle East. Compared to 2019 levels, this translates into a further acceleration with revenues up 33% currency-adjusted. In the Americas, currency-adjusted sales were up 17%, supported by double-digit growth in the important U.S. market. This corresponds to a significant increase of 44% on a three-year-stack basis, reflecting a strong acceleration versus previous quarters. Revenues in Asia/Pacific were down 3% currency-adjusted, as strong double-digit improvements in South East Asia & Pacific were more than offset by sales declines in mainland China. The latter largely reflects ongoing implications related to the COVID-19 pandemic, including temporary store closures during the fourth quarter. Compared to Q4 2019, however, currency-adjusted sales in Asia/Pacific increased by 4%.
Broad-based growth across all consumer touchpoints
From a channel perspective, currency-adjusted growth in the Group’s digital business increased by 9% compared to the prior-year period, driven by double-digit sales increases in the Group’s digital flagship hugoboss.com as well as robust improvements in digital revenues generated with partners. Compared to 2019, total digital sales virtually doubled, up 92% currency-adjusted. In brick-and-mortar retail, momentum also remained strong with currency-adjusted revenues up 12% compared to the prior year. On a three-year-stack basis, growth in brick-and-mortar retail amounted to 22%. In brick-and-mortar wholesale, currency-adjusted sales were up 29% year over year. This development reflects ongoing robust demand from wholesale partners for both brands’ collections, enabling BOSS and HUGO to strongly improve visibility and penetration at key wholesale partners. Compared to pre-pandemic levels, this translates into strong double-digit growth of 21%.
Significant top- and bottom-line improvements in fiscal year 2022
In light of the strong performance during the final quarter of 2022, HUGO BOSS exceeded its full year 2022 sales and earnings targets, which had been revised upwards twice during the course of the year. Fiscal year 2022 thus marked a first important milestone in the successful execution of “CLAIM 5”. In particular, the new and powerful brand image of BOSS and HUGO drove brand momentum throughout the year, resulting in strong sell-through rates and enabling both brands to successfully expand market share globally. On a preliminary, non-audited basis, HUGO BOSS thus achieved record sales of EUR 3,651 million in fiscal year 2022, reflecting strong growth of 31% in reporting currency (guidance: increase between 25% and 30% to EUR 3.5 billion to EUR 3.6 billion; 2021: EUR 2,786 million). On a currency-adjustedbasis, this translates into an increase of 27%.
At the same time, HUGO BOSS recorded significant bottom-line improvements in fiscal year 2022, as the strong top-line development more than compensated for ongoing brand, product, and digital investments as part of “CLAIM 5”. Subject to the completion of year-end closing procedures, the Group anticipates that operating profit (EBIT) will increase by 47% to an amount of EUR 335 million for full-year 2022, thereby exceeding current market expectations (guidance: increase between 35% and 45% to a level of EUR 310 million to EUR 330 million; 2021: EUR 228 million). The final quarter is expected to contribute an EBIT of EUR 104 million, up 4% year over year (2021: EUR 100 million). As a result, the EBIT margin for full year 2022 is expected to increase to a level of 9.2% (2021: 8.2%).
HUGO BOSS will publish its final results for 2022 and its financial outlook for the fiscal year 2023 on March 9, 2023.
If you have any questions, please contact:
Carolin Westermann Vice President Global Corporate Communications Phone: +49 7123 94-86321 Email: carolin_westermann@hugoboss.com
Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 Email: christian_stoehr@hugoboss.comFinancial Publicationsnews-4179Thu, 03 Nov 2022 06:22:54 +0000HUGO BOSS RECORDS ONGOING STRONG MOMENTUM IN Q3 AND RAISES FULL-YEAR OUTLOOKhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-ongoing-strong-momentum-in-q3-and-raises-full-year-outlook-1 Currency-adjusted Group sales increase 18% in Q3; +27% compared to 2019 levels Momentum in brick-and-mortar retail accelerates in the third quarter (+25% vs. 2019) Double-digit revenue improvements across both brands, all regions, and all channels EBIT amounts to EUR 92 million in Q3; 8% above the prior-year level FY 2022 outlook raised: sales to grow between 25% and 30% to a record level of between EUR 3.5 billion and EUR 3.6 billion; EBIT to increase between 35% and 45%
“We look back on an extremely successful quarter, in which our broad-based growth contin­ued seamlessly,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “Building on our strong brand momentum, we look forward to the important final quarter with confidence. Thanks to the relentless execution of our ‘CLAIM 5’ strategy, we are well on track to make 2022 not only a record year for HUGO BOSS, but also a major milestone along our 2025 targets.”
In the third quarter of 2022, HUGO BOSS posted significant top-line growth, thereby continu­ing its strong momentum from the previous quarter. This development was once more fueled by the successful execution of several brand and product initiatives as part of the Company’s “CLAIM 5” growth strategy. Group sales increased by 18% currency-adjusted to EUR 933 million (Q3 2021: EUR 755 million), representing the highest quarterly sales in the history of HUGO BOSS. In Group currency, this corresponds to an increase of 24%. Compared to 2019 levels, currency-adjusted sales growth was 27% (Q3 2019: EUR 720 million).
Successful launch of Fall/Winter 2022 collections drives brand momentum Across brands, exciting marketing and product initiatives continued to drive relevance for BOSS and HUGO. The global launch of the Fall/Winter 2022 collections was accompanied by two star-studded campaigns in August, building on the success of the comprehensive branding refresh initiated at the beginning of the year. Brand heat was further fueled by two exciting fashion shows. Both BOSS and HUGO showcased their new collections during Milan Fashion Week in September, thereby propelling brand awareness on social media and further tapping into a younger demographic. Strong sell-through rates, well above pre-pandemic levels, underline the success of both collections. Consequently, both BOSS and HUGO posted double-digit revenue improvements in the third quarter with robust growth across all wearing occasions. While currency-adjusted sales for BOSS Menswear were up 20% against the prior-year period, sales for BOSS Womenswear increased by 13% and thus strongly accelerated on a three-year-stack basis. At HUGO, currency-adjusted revenues also grew by 13% year over year.
Broad-based growth with double-digit improvements across all regions Growth in the third quarter was once more broad-based with all regions recording double-digit sales improvements fueled by robust consumer demand. In Europe, currency-adjusted sales increased by 17% year over year, reflecting ongoing strong demand across key markets. Also in the Americas, momentum remained strong throughout the third quarter with currency-adjusted sales up 18% year over year. Compared to 2019 levels, momentum in the Americas therefore remained virtually at the level of the second quarter, with currency-adjusted sales up 35%. In Asia/Pacific, momentum also picked up strongly in the third quarter with revenues re­turning to double-digit growth. Significant double-digit improvements in South East Asia & Pacific spurred momentum in the whole region, with currency-adjusted sales consequently up 33% year over year.
Momentum in digital as well as in brick-and-mortar retail accelerates All channels contributed to the strong performance in Q3 as reflected by double-digit sales improvements across all consumer touchpoints. Currency-adjusted growth in the Group’s digi­tal channels accelerated to 20% compared to the prior-year period, reflecting both a double-digit sales increase in the Group’s digital flagship hugoboss.com as well as strong improve­ments in digital revenues generated with partners. Also momentum in brick-and-mortar retail remained strong, with currency-adjusted revenues up 18% compared to the prior year. On a three-year-stack basis, growth in brick-and-mortar retail even accelerated to 25%, with momentum strengthening across all three regions. In brick-and-mortar wholesale, cur­rency-adjusted sales were up 18% year over year. While this development reflects ongoing robust demand from wholesale partners for BOSS and HUGO, delivery shift effects limited growth to some extent.
Operating profit up 8% despite ongoing brand and product investments In the third quarter of 2022, HUGO BOSS increased its operating profit (EBIT) by 8% to EUR 92 million (Q3 2021: EUR 85 million), driven by the strong top-line performance. This more than compensated for a moderate decline in gross margin as well as an increase in selling and distribution expenses, with the latter mainly reflecting ongoing investments into the busi­ness as part of “CLAIM 5”. In particular, marketing investments increased by 39% year over year, first and foremost reflecting the two comprehensive brand campaigns and fashion events of BOSS and HUGO, aimed at driving brand relevance globally.
HUGO BOSS raises outlook for full year 2022 In light of the strong financial performance in the third quarter, HUGO BOSS raises its top- and bottom-line outlook for the current fiscal year. At the same time, the Company takes into account both ongoing investments into its business as well as persisting high levels of macro­economic uncertainty. Group sales for fiscal year 2022 are now expected to increase between 25% and 30% to a new record level of EUR 3.5 billion to EUR 3.6 billion (prior: increase be­tween 20% and 25% to a level of EUR 3.3 billion to EUR 3.5 billion). At the same time, EBIT in 2022 is now expected to increase between 35% and 45% to a level of EUR 310 million to EUR 330 million (prior: increase between 25% to 35% to an amount of EUR 285 million to EUR 310 million).
If you have any questions, please contact:
Carolin Westermann Vice President Global Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com
Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-4069Wed, 03 Aug 2022 05:15:38 +0000HUGO BOSS STRONGLY ACCELERATES TOP- AND BOTTOM-LINE GROWTH IN Q2 FUELED BY SUCCESSFUL EXECUTION OF “CLAIM 5”https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-strongly-accelerates-top-and-bottom-line-growth-in-q2-fueled-by-successful-execution-of-claim-5-1Quarterly Statement for Q2 2022 Metzingen, August 3, 2022
HUGO BOSS STRONGLY ACCELERATES TOP- AND BOTTOM-LINE GROWTH IN Q2 FUELED BY SUCCESSFUL EXECUTION OF “CLAIM 5”
Currency-adjusted Group sales in Q2 increase +34%; +29% above 2019 Successful branding refresh drives momentum for BOSS and HUGO Growth strongly accelerates in Europe and the Americas EBIT more than doubles to EUR 100 million in the second quarter FY 2022 outlook: Sales to grow between +20% and +25% to a record level of between EUR 3.3 billion and EUR 3.5 billion; EBIT to increase by +25% to +35%
“Our impressive growth in the first half of the year reflects the many successes related to our comprehensive branding refresh,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “We have significantly increased the relevance of BOSS and HUGO within a very short period of time. Based on this momentum, we will continue to work rigorously on the execution of our ‘CLAIM 5’ growth strategy and pursue our ambition to become one of the top 100 global brands.”
HUGO BOSS looks back on a highly successful second quarter, with top- and bottom-line growth further accelerating. Momentum was fueled by the rigorous execution of the Company’s “CLAIM 5” growth strategy introduced one year ago. As pre-announced in July, currency-adjusted Group sales increased 34% compared to the prior-year period. In Group currency, revenues were up 40% to EUR 878 million in the three-month period (Q2 2021: EUR 629 million), marking the strongest second quarter in the history of HUGO BOSS. Sales once again significantly exceeded pre-pandemic levels, up 29% compared to Q2 2019 (Q2 2019: EUR 675 million). This represents a further acceleration as compared to the first quarter of 2022, driven by ongoing high consumer demand in Europe and the Americas.
Brand and product initiatives drive momentum for BOSS and HUGO
Across brands, momentum was fueled by the successful branding refresh. Several marketing initiatives, in particular the global brand campaigns for BOSS and HUGO, created strong buzz on social media and drove brand relevance among younger consumers such as Millennials and Generation Z. The latest BOSS and HUGO collections, with their new and bolder look and feel, piqued interest especially in these target groups and have resulted in strong sell-through rates. On top of that, the launch of various capsule collections including BOSS x Khaby and HUGO x Mr. Bathing Ape created further excitement. Consequently, both BOSS and HUGO recorded significant double-digit sales improvements. Currency-adjusted revenues for BOSS Menswear were up 35% year over year and grew 29% as compared to 2019. Sales for BOSS Womenswear increased 23% currency-adjusted, translating into growth of 6% compared to 2019 levels. At HUGO, currency-adjusted sales were up 37%, translating into growth of 39% on a three-year-stack basis.
Europe and the Americas with strong acceleration in Q2
From a regional perspective, growth was particularly strong in Europe and the Americas, with both regions recording a further acceleration in momentum in the second quarter. Sales in Europe increased by 41% year over year, translating into growth of 36% compared to 2019 levels, both currency-adjusted. This development was driven by double-digit improvements in key markets such as Great Britain, France, and Germany. Also in the Americas, momentum remained strong in Q2 with currency-adjusted sales up 45% compared to the prior year, thereby exceeding 2019 levels by 38% with all markets contributing. In the important U.S. market, where HUGO BOSS continues to successfully foster its 24/7 brand image, revenue growth saw a further acceleration compared to the first quarter of 2022. In Asia/Pacific, currency-adjusted revenues remained on par with the prior-year level. Strong double-digit growth in South East Asia & Pacific compensated for a sales decline in mainland China, largely reflecting COVID-19-related temporary store closures throughout much of the second quarter. As compared to pre-pandemic levels, sales in Asia/Pacific were down 4%.
Momentum in brick-and-mortar business strongly accelerates in the second quarter
All channels contributed to the strong performance in the second quarter. The Group’s digital business once more recorded double-digit growth, being up 11% currency-adjusted against a particularly strong comparison base. Compared to pre-pandemic levels, total digital revenues more than doubled, up 128% currency-adjusted. Also in brick-and-mortar retail, HUGO BOSS saw robust double-digit sales improvements, with currency-adjusted revenues up 38% compared to the prior year and three-year-stack growth amounting to 19%. This development was supported by the successful execution of important strategic initiatives aimed at further optimizing the global store network. In this context, the new BOSS flagship store at London’s Oxford Street, which was opened in mid-June, marks a particularly important milestone. In brick-and-mortar wholesale, on the other hand, currency-adjusted revenues increased 51%, fueled by wholesale partners’ strong demand for the latest BOSS and HUGO collections fully reflecting the branding refresh. On a three-year-stack basis, growth accelerated to 18%.
EBIT more than doubles to EUR 100 million
In light of the strong top-line performance in the second quarter, the operating profit (EBIT) more than doubled to EUR 100 million (Q2 2021: EUR 42 million). This development was also supported by a noticeable improvement in gross margin, mainly reflecting a higher share of full-price sales, as well as operating expense leverage. In doing so, the company was able to more than compensate for non-cash impairment charges of EUR 15 million related to its store network in Russia. When compared to pre-pandemic levels, EBIT significantly improved by 25% (Q2 2019: EUR 80 million).
HUGO BOSS raises outlook for full year 2022
On the back of the strong financial performance in the second quarter, HUGO BOSS has raised its top- and bottom-line outlook for the current fiscal year while taking into account both ongoing investments into its business as part of “CLAIM 5” as well as persisting high levels of macroeconomic uncertainty. The Company now forecasts Group sales in fiscal year 2022 to increase between 20% and 25% to a new record level of between EUR 3.3 billion and EUR 3.5 billion (prior guidance: increase between 10% and 15% to a level of between EUR 3.1 billion and EUR 3.2 billion). EBIT is now expected to increase between 25% and 35% to a level of between EUR 285 million and EUR 310 million in 2022 (prior guidance: increase of between 10% to 25% to an amount of between EUR 250 million and EUR 285 million).
If you have any questions, please contact:
Carolin Westermann Vice President Global Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com
Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-4026Wed, 13 Jul 2022 17:43:33 +0000HUGO BOSS RAISES FULL YEAR 2022 OUTLOOK AS MOMENTUM FURTHER ACCELERATES IN Q2 https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-raises-full-year-2022-outlook-as-momentum-further-accelerates-in-q2-2Metzingen, July 13, 2022
Currency-adjusted Group sales in Q2 2022 grow 34­% to EUR 878 million, up 29% vs. Q2 2019 EBIT in Q2 amounts to EUR 100 million, well above the prior-year level FY 2022 outlook: Sales now expected to grow to a record level of between EUR 3.3 billion and EUR 3.5 billion (+20% to +25%); EBIT expected to increase to a level of between EUR 285 million and EUR 310 million (+25% to +35%)
Following its successful start to the year, HUGO BOSS further accelerated its financial and operational performance in the second quarter. Momentum was fueled by the ongoing successful execution of the Company’s “CLAIM 5” growth strategy as well as the bold branding refresh of BOSS and HUGO initiated at the beginning of 2022. Consequently, HUGO BOSS posted strong top- and bottom-line improvements year-over-year, thereby significantly exceeding overall market expectations for the second quarter.
“The strong acceleration of our business performance in the second quarter impressively demonstrates the successful execution of our ‘CLAIM 5’ strategy, only one year after its introduction,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “Our bold branding refresh resonates extremely well with our customers around the globe and will further drive brand momentum.”
On a preliminary basis, currency-adjusted Group sales in Q2 increased 34% compared to the prior-year period. In Group currency, revenues were up 40%, totaling EUR 878 million in the three-month period (Q2 2021: EUR 629 million), marking the strongest second quarter in the history of HUGO BOSS. Compared to the second quarter of 2019, currency-adjusted Group sales increased by 29% (Q2 2019: EUR 675 million), representing a further acceleration as compared to the first quarter, driven by particular strong demand in Europe and the Americas.
In Europe, currency-adjusted sales were up 41% year-over-year, translating into robust three-year-stack growth of 36%, with all major markets contributing. In the Americas, HUGO BOSS drove currency-adjusted sales growth of 45% year-over-year, with three-year-stack growth amounting to 38%. In Asia/Pacific, currency-adjusted revenues remained on par with the prior-year level. Double-digit growth in South East Asia & Pacific compensated for a sales decline in China, largely reflecting COVID-19-related temporary store closures throughout much of the second quarter. As compared to pre-pandemic levels, sales in Asia/Pacific were down 4%.
From a channel perspective, the Group’s digital business successfully continued its double-digit growth trajectory. Despite being up against a particularly strong comparison base from the prior-year period, currency-adjusted sales were up 11%. Compared to 2019, total digital sales more than doubled, up 128% currency-adjusted. Also in brick-and-mortar retail, HUGO BOSS recorded double-digit sales improvements, with revenues up 38% compared to the prior year. Consequently, three-year-stack growth amounted to 19% currency-adjusted. Fueled by wholesale partners’ strong demand for the latest BOSS and HUGO collections fully incorporating the branding refresh, currency-adjusted sales in brick-and-mortar wholesale grew 51%. As compared to pre-pandemic levels, this translates into an increase of 18%.
In the second quarter of 2022, on a preliminary basis, HUGO BOSS generated an operating profit (EBIT) of EUR 100 million, significantly above the prior-year level (Q2 2021: EUR 42 million). This development mainly reflects the strong Group sales development as well as noticeable improvements in gross margin driven by an overall higher share of full-price sales. Compared to pre-pandemic levels, EBIT was up 25% (Q2 2019: EUR 80 million).
In light of the strong top- and bottom-line performance in the second quarter but also taking into account the ongoing macroeconomic uncertainties, HUGO BOSS raises its outlook for the current fiscal year. The Company now forecasts Group sales in fiscal year 2022 to increase between +20% and +25% to a new record level of between EUR 3.3 billion and EUR 3.5 billion (prior guidance: increase between +10% and +15% to a level of between EUR 3.1 billion and EUR 3.2 billion). EBIT in 2022 is now expected to increase between +25% and +35% to a level of between EUR 285 million and EUR 310 million (prior guidance: increase of between +10% to +25% to an amount of between EUR 250 million and EUR 285 million).
HUGO BOSS will publish its full second quarter 2022 results on August 3 (7:30 a.m. CEST).
If you have any questions, please contact:
Carolin Westermann Vice President Global Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-3872Wed, 04 May 2022 05:37:00 +0000HUGO BOSS WITH RECORD FIRST QUARTER SALES - BRAND MOMENTUM ACCELERATES GLOBALLY DRIVEN BY SUCCESSFUL BRANDING REFRESH https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-with-record-first-quarter-sales-brand-momentum-accelerates-globally-driven-by-successful-branding-refreshQuarterly Statement for Q1 2022 Metzingen, May 4, 2022
Currency-adjusted Group sales grow 52% to EUR 772 million; 17% above 2019 levels Ongoing robust momentum in Europe (+21% vs. Q1 2019) and the Americas (+17%) Significant marketing investments drive brand momentum across all touchpoints EBIT amounts to EUR 40 million in Q1, well above the prior-year level Top- and bottom-line outlook for full year 2022 confirmed
“We have made a kickstart to fiscal year 2022, with record first quarter sales,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “Supported by our bold branding refresh, momentum for BOSS and HUGO has accelerated around the globe. Together with the ongo­ing rigorous execution of our ‘CLAIM 5’ strategy, this provides us with strong tailwinds to achieve record sales in fiscal year 2022.”
In the first three months of 2022, HUGO BOSS continued its strong financial and operational performance, posting significant top- and bottom-line improvements year-on-year. Group sales increased 52% currency-adjusted to EUR 772 million (Q1 2021: EUR 497 million), marking the strongest first quarter in the history of HUGO BOSS from a top-line perspective. In Group currency, revenues increased 55%. The strong sales development primarily reflects ongoing robust momentum in the Company’s largest regions – Europe and the Americas. In addition, the successful execution of important strategic initiatives as part of the “CLAIM 5” strategy provided further tailwind. Consequently, revenues in the first quarter of 2022 strongly ex­ceeded pre-pandemic levels, up 17% currency-adjusted as compared to the first three months of 2019, representing a further acceleration as compared to the final quarter of 2021.
Successful branding refresh drives brand momentum globally
In the first quarter, HUGO BOSS successfully implemented its comprehensive branding refresh – from new product, to record-breaking marketing campaigns, up to the relaunch of its digi­tal flagship hugoboss.com – significantly driving relevance and perception of its brands. In particular, the two star-studded global campaigns for BOSS and HUGO, perfectly embodying the brands’ younger and more confident image, drove brand momentum and attracted new and younger customers worldwide. Sell-through rates for the brands’ Spring/Summer 2022 collections – the first ones to fully embody the branding refresh – clearly exceed those of previous collections. Fueled by this success, HUGO BOSS recorded significant double-digit growth in currency-adjusted sales for BOSS Menswear (+53%), BOSS Womenswear (+41%), and HUGO (+52%). On a three-year-stack basis, currency-adjusted sales for BOSS Menswear exceeded pre-pandemic levels by 17%, while sales for BOSS Womenswear remained on par. At HUGO, currency-adjusted sales grew a strong 26% as compared to 2019.
Strong momentum in Europe and the Americas continues
Momentum was particularly strong in Europe and the Americas. Compared to the prior-year period, currency-adjusted sales in Europe increased 69%, translating into strong growth of 21% on a three-year-stack basis. This development represents a further acceleration as com­pared to the final quarter of 2021, driven by robust local demand across key European mar­kets, particular in Great Britain and France. Also in Eastern Europe, momentum remained strong despite the war in Ukraine and the corresponding suspension of business activities in Russia, implemented as of March 9. Regardless of this, HUGO BOSS remains deeply concerned by the humanitarian crisis in the region, contributing financial aid to organ­izations aimed at supporting those affected by the war. The Company will continue to closely follow the dramatic developments in Ukraine and the region and take further decisions and actions as needed.
In the Americas, currency-adjusted revenues were up 56% compared to the prior year. Con­sequently, sales grew 17% as compared to 2019 levels, with all of the region’s markets record­ing sales increases versus pre-pandemic levels. While the Group’s business in Asia/Pacific also recorded a promising start to the year, renewed COVID‑19-related restrictions – including temporary store closures and reduced opening hours – weighed on consumer sentiment and store traffic in mainland China towards the end of the quarter. As a result, currency-adjusted sales in mainland China remained 13% below the prior-year period but were up 12% versus 2019 levels. Overall, revenues in the Asia/Pacific region came in 3% above the prior-year level and only 1% below that of 2019.
Broad-based growth across all channels
From a channel perspective, the Group’s digital business – including the digital flagship hugoboss.com as well as digital revenues generated with partners – successfully continued its double-digit growth trajectory. Despite being up against a particularly strong comparison base from the prior-year period, currency-adjusted sales increased 22% in the first quarter of 2022, with double-digit improvements across all digital touchpoints. This development was supported by the successful relaunch of hugoboss.com implemented in January. Compared to 2019, total digital sales more than doubled, up 145% currency-adjusted. The Group’s brick-and-mortar retail business also recorded double-digit sales improvements, with revenues up a strong 76%, partly reflecting long-lasting temporary store closures in the prior-year period. Consequently, revenues were 5% above 2019 levels. At the same time, sales in brick-and-mortar wholesale grew 44%, marking the channel’s return to pre-pandemic levels with an increase of 2% as compared to 2019, both currency-adjusted. This mainly reflects the strong demand of wholesale partners for the Spring/Summer 2022 collections fully incorporating the branding refresh.
EBIT increases strongly to EUR 40 million despite significant brand investments
In the first quarter of 2022, HUGO BOSS generated an operating profit (EBIT) of EUR 40 million, well above the prior-year level (Q1 2021: EUR 1 million) and despite significant investments into the business. In particular, marketing investments effectively doubled, first and foremost reflecting the comprehensive BOSS and HUGO campaigns as part of the branding refresh, aimed at driving brand relevance globally. The increase in EBIT is mainly attributable to the strong sales growth as well as an improvement in gross margin, as a higher share of full-price sales more than compensated for the persistently high level of global freight and transportation costs.
HUGO BOSS confirms outlook for full year 2022
Following its successful start to 2022, HUGO BOSS confirms its top- and bottom-line outlook for the current fiscal year. Accordingly, the Group continues to expect sales in 2022 to increase between +10% and +15% to a new record level of between EUR 3.1 billion and EUR 3.2 billion. This outlook is underpinned by the persisting strong brand momentum generated by BOSS and HUGO in the wake of the successful branding refresh. Additionally, HUGO BOSS expects ongoing robust momentum in Europe and the Americas, supported by a particularly strong order intake for Fall/Winter 2022, which is forecast to drive wholesale sales in the second half of the year. Driven by the anticipated robust top-line improvements, HUGO BOSS remains confident of generating significant bottom-line growth in 2022. The Company thus continues to forecast EBIT to increase within a range of +10% to +25% to an amount of between EUR 250 million and EUR 285 million, despite ongoing investments into product, brand, and digital as part of “CLAIM 5”, and against the backdrop of the current geopolitical and macroeconomic uncertainties.
If you have any questions, please contact:
Christian Stöhr Vice President Investor Relations Phone +49 7123 94 – 87563 Email christian_stoehr@hugoboss.com
Carolin Westermann Head of Corporate Communications Phone +49 7123 94 – 86321 Email carolin_westermann@hugoboss.comFinancial Publicationsnews-3792Thu, 10 Mar 2022 07:08:15 +0000HUGO BOSS ACHIEVES STRONG COMEBACK IN 2021https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-mit-starkem-comeback-in-2021-1Press release on the full year 2021 results Metzingen, March 10, 2022
HUGO BOSS ACHIEVES STRONG COMEBACK IN 2021 SUCCESSFUL BRANDING REFRESH PAVES WAY FOR RECORD SALES IN 2022
Full year 2021
Group sales grow 43% to EUR 2,786 million, thus returning to pre-pandemic levels EBIT significantly improves to EUR 228 million Free cash flow and net financial position hit record levels
Strategic highlights
Successful branding refresh spurs execution of “CLAIM 5,” creating strong digital buzz Strong feedback on Spring/Summer 2022 collections, fully embodying the branding refresh Share of total digital sales reaches 20% for the first time
Outlook 2022
Execution of “CLAIM 5” growth strategy primary focus in 2022 Sales to grow to a record level of between EUR 3.1 billion and EUR 3.2 billion (+10% to +15%) EBIT to increase by +10% to +25% to a level of EUR 250 million to EUR 285 million
“At HUGO BOSS, we are deeply concerned by the terrible situation in Ukraine. Our deepest empathy and thoughts are with the millions of people affected by the war and suffering from this humanitarian crisis,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “To help the people in need, we support the German Red Cross and other institutions, standing in solidarity with each and every one calling for peace. We will continue to monitor the situation very closely and adapt our measures and financial support accordingly.”
As pre-announced in January 2022, HUGO BOSS recorded significant top- and bottom-line improvements in fiscal year 2021, consequently exceeding its full year sales and earnings targets. Group sales amounted to EUR 2,786 million (2020: EUR 1,946 million), representing a strong currency-adjusted increase of 43% compared to the prior year, above the Company’s guidance of a currency-adjusted sales increase of around 40%. Consequently, currency-adjusted sales effectively returned to pre-pandemic levels. Importantly, growth in fiscal year 2021 was broad-based in nature, with sales increasing for both brands, BOSS and HUGO, as well as across all regions and distribution channels. This development was driven by a notice­able pick-up in global consumer sentiment starting in the second quarter. In addition, the successful execution of several key brand, product, and sales initiatives as part of the Company’s “CLAIM 5” strategy also fueled brand momentum and accelerated the business performance of HUGO BOSS in the second half of 2021.
EBIT significantly improves to EUR 228 million
In light of the strong top-line performance, the operating result (EBIT) also recorded a significant increase. Overall, EBIT amounted to EUR 228 million in fiscal year 2021 (2020: minus EUR 236 million) – above the Company’s increased guidance of between EUR 175 million and EUR 200 million – representing an EBIT margin of 8.2% (2020: minus 12.1%). This development was also supported by improvements in gross margin as well as operating leverage. This means that efficiency gains, particularly in the Group’s own retail business, as well as strict cost management enforced, in particular, during the first half of the year, largely compensated for a noticeable step-up in brand and digital investments as part of “CLAIM 5.”
Free cash flow and net financial position hit record levels
As a result of the significant top- and bottom-line growth as well as noticeable improvements in trade net working capital, HUGO BOSS generated the strongest free cash flow in its history. At EUR 559 million, free cash flow in 2021 more than tripled compared to the prior year (2020: EUR 164 million). As a consequence, the net financial position of HUGO BOSS at the end of fiscal year 2021 totaled plus EUR 167 million (excl. the impact of IFRS 16), representing the strongest net financial position of HUGO BOSS to date (2020: minus EUR 141 million).
“With our strong comeback in 2021, we successfully kicked off our ‘CLAIM 5’ strategy,” says Daniel Grieder. “Right from its start, our growth strategy fueled brand momentum around the globe. The highly successful branding refresh and ongoing investments will further drive relevance for BOSS and HUGO in the current year. We have everything it takes to reach record sales in 2022. As a team, we will take a big step closer towards our goal of becoming one of the top 100 global brands.”
Successful branding refresh accompanied by record-breaking campaign launch
Starting in late January 2022, HUGO BOSS successfully initiated its bold branding refresh by means of the record-breaking launch of two star-studded global campaigns. Since then, the #BeYourOwnBOSS and #HowDoYouHUGO campaigns created tremendous digital buzz around the world, with a total of 6 billion impressions and more than 300 million engagements in the first six days. A unique cast of high-profile celebrities led to a wide-reaching digital activation, making the campaigns the most successful ones in HUGO BOSS history.
Fueled by this excitement, both BOSS and HUGO have undertaken a new, modern brand identity focused on a younger and more global demographic. Feedback on the brands’ new Spring/Summer 2022 collections – the first ones to fully embody the branding refresh – so far has been overwhelmingly positive, both from consumers and wholesale partners. Sell-through rates in brick-and-mortar retail as well as online clearly exceed those of previous collections. The signature BOSS hoodie – emblazoned with the brand's new logo – quickly became the best-selling single style in the history of HUGO BOSS.
Execution of “CLAIM 5” growth strategy primary focus for 2022
Based on the acceleration in top-line momentum in fiscal year 2021, as well as the highly successful branding refresh, HUGO BOSS is confident that 2022 will mark another successful year for the Company and an important milestone towards becoming a top 100 global brand. The consequent execution of “CLAIM 5” will therefore take center stage among all the Company’s initiatives in 2022, with a particular emphasis on further driving brand relevance. The ongoing step up in marketing investments – with a strong focus on social media, exciting events, and exceptional collaborations – will ensure both BOSS and HUGO continue to create buzz also going forward. At the same time, product investments to further drive casualness and comfort across all wearing occasions will strongly contribute to establishing BOSS as a true 24/7 lifestyle brand and HUGO as the first point of contact for younger customers.
In addition, in 2022, HUGO BOSS will continue to invest in the further digitalization of its business model and in the optimization and modernization of its global store network. Regarding the latter, HUGO BOSS is aiming to roll out its brand-new store concept to more than 100 points of sale in the current year. The opening of the Company’s first global anchor store on London’s iconic Oxford Street in the second quarter will mark a particular important milestone in this regard. At the same time, HUGO BOSS will continue to push ahead with its global digital business. The freshly relaunched online flagship hugoboss.com is of particular importance and is building a cornerstone of the Company’s omnichannel strategy. For the first time, total digital sales added up to 20% of Group sales in 2021, marking a significant mile­stone for HUGO BOSS on its way to growing the digital penetration to a level of between 25% and 30% of Group sales by 2025.
Strong top- and bottom-line improvements anticipated for fiscal year 2022
Also in 2022, HUGO BOSS is confident of achieving strong top- and bottom-line improvements. At the same time, the Company faces ongoing uncertainties with regard to the further development of the COVID-19 pandemic. In addition, it is difficult to assess the implications of a potential further escalation of the war in Ukraine on overall economic and sector growth. As of March 9, HUGO BOSS has temporarily closed its stores and suspended all own retail and e-commerce business activities in Russia. Together with Ukraine, the market accounted for around 3% of Group sales in fiscal year 2021. The Company will provide all impacted employees with financial and operational support and remain in close contact with its business partners.
Against this backdrop, Group sales are expected to increase between +10% and +15% to a new record level of between EUR 3.1 billion and EUR 3.2 billion, with all regions and both brands expected to contribute to this development. In addition, HUGO BOSS forecasts that it will increase EBIT in 2022 within a range of +10% to +25% to an amount of between EUR 250 million and EUR 285 million. This development will be driven by the anticipated strong top-line improvements. In addition to that, efficiency gains are expected to largely offset the investments planned for 2022 as part of "CLAIM 5" to strengthen products, brands, and digital expertise.
HUGO BOSS to resume dividend payments
In view of the strong operational and financial performance in 2021, the very solid financial position, and management’s confidence in the successful execution of its “CLAIM 5” growth strategy, HUGO BOSS is planning to resume dividend payments. Consequently, the Managing Board and the Supervisory Board intend to propose to the Annual Shareholders’ Meeting on May 24, 2022, a dividend of EUR 0.70 per share for fiscal year 2021 (2020: EUR 0.04). The proposal is equivalent to a payout ratio of 35% of the Group’s net income attributable to shareholders in fiscal year 2021, thus fully in line with the Company’s targeted payout range of between 30% to 50%.
Further information can be found in the Online Version of the HUGO BOSS Annual Report 2021.Financial Publicationsnews-3731Tue, 18 Jan 2022 06:23:00 +0000HUGO BOSS records strongest quarterly sales in its history as momentum further accelerates in Q4 2021 - Preliminary results exceed guidancehttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-strongest-quarterly-sales-in-its-history-as-momentum-further-accelerates-in-q4-2021-preliminary-results-exceed-guidancePreliminary results for fiscal year 2021
Metzingen, January 18, 2022
HUGO BOSS RECORDS STRONGEST QUARTERLY SALES IN ITS HISTORY AS MOMENTUM FURTHER ACCELERATES IN Q4 2021 PRELIMINARY RESULTS EXCEED GUIDANCE
Q4 2021
Currency-adjusted Group sales grow 51% to EUR 906 million; 12% up vs. 2019 Share of total digital sales at 20% EBIT increases to EUR 100 million on a preliminary basis
Fiscal year 2021
Currency-adjusted sales up 43% compared to 2020; only 1% below 2019 levels EBIT sums up to EUR 228 million on a preliminary basis Final results and full year outlook to be published on March 10, 2022
“2021 was a highly successful year for HUGO BOSS,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “We strongly accelerated our sales and earnings development throughout the year and also made first great strides in executing our new ‘CLAIM 5’ growth strategy. The upcoming weeks will see further important milestones, with the introduction of our new branding and the launch of the biggest BOSS and HUGO marketing campaigns in our Company’s history. Based on these exciting initiatives, we will further drive brand relevancy in 2022.”
Following the strong business recovery recorded in the third quarter, momentum further accelerated in the final months of 2021. On a preliminary basis, currency-adjusted revenues in the fourth quarter increased 51% compared to the prior-year level, thus exceeding Q4 2019 levels by 12%. In the reporting currency, sales grew by 55% to EUR 906 million (Q4 2020: EUR 583 million) making the fourth quarter of 2021 the most successful one in HUGO BOSS’ history from a top-line perspective, despite renewed concerns around the COVID-19 pandemic towards the end of the year. Growth was supported by 98% of the Company’s store network being back in operation during the fourth quarter. In addition, HUGO BOSS benefitted from ongoing robust consumer sentiment in key markets as well as the successful execution of key strategic initiatives as part of its ‘CLAIM 5’ strategy.
BOSS and HUGO record double-digit growth versus 2019
From a brand perspective, both BOSS and HUGO posted significant sales improvements in the fourth quarter, fueled by strong increases across all wearing occasions. Growth was particularly driven by the brands’ ongoing strength within casualwear while formalwear sales also continued to recover noticeably, spurred by the occurrence of social events ahead of the holiday season. Compared to 2019 levels, currency-adjusted sales for BOSS grew by 10% while HUGO posted growth of 23%.
Momentum accelerates across all regions and key markets
All regions contributed to the acceleration in sales growth with Europe and the Americas once more showing particular strength. Fueled by ongoing strong local demand, both regions recorded significant double-digit sales increases as compared to last year. On a two-year-stack basis, currency-adjusted revenues in Europe were up 11% with all key markets – including the UK, Germany and France – contributing to sales growth. In the Americas, currency-adjusted sales were up 22%, with the important U.S. market accelerating sales growth to 15%, both compared to pre-pandemic levels. Momentum also picked up noticeably in Asia/Pacific, where revenues grew high single-digit compared to the prior year, translating into 6% growth compared to 2019. While the reopening of stores in South East Asia & Pacific fueled regional growth, sales in mainland China also grew 18% as compared to 2019.
Share of total digital sales at 20%
The Group’s digital business continued to post significant double-digit sales improve­ments also in the final quarter. Total digital sales – including the Group’s own website hugoboss.com, digital pure players, leading marketplaces as well as bricks and clicks – grew 50% as compared to the prior-year quarter, translating to strong growth of 85% on a two-year-stack basis. Total digital sales thus added up to 20% of Group sales in the fourth quarter, marking a significant milestone for HUGO BOSS on its way to grow the digital penetration to a level of between 25% and 30% of Group sales by 2025.
Own online sales amounted to EUR 110 million in the final quarter of 2021, reflecting currency-adjusted growth of 33% against the prior year and 78% as compared to 2019 levels. The Group's retail business, including own online, also recorded solid growth, with currency-adjusted sales up 51% on the prior-year level and 15% on a two-year-stack basis. At the same time, wholesales sales increased by 60% versus last year, while they outperformed 2019 levels by 7%.
Full year sales and earnings exceed guidance
Consequently, HUGO BOSS exceeded its full year 2021 sales and earnings targets, which had been revised upwards back in October. On a preliminary, non-audited basis, HUGO BOSS recorded sales of EUR 2,786 million in full year 2021 (2020: EUR 1,946 million), representing an increase of 43% compared to the prior year, both on a reported and currency-adjusted basis. Currency-adjusted sales thus remained only 1% below pre-pandemic levels (2019: EUR 2,884 million), with an average of around 90% of the Company’s stores open during the year. Global consumer sentiment picked up significantly from the second quarter onwards, supporting the Group’s business recovery throughout the remainder of the year. In addition, the successful execution of several key brand, product, and sales initiatives as part of ‘CLAIM 5’ positively impacted the operational performance of HUGO BOSS. From a bottom-line perspective, earnings recovered noticeably in the course of the year, first and foremost reflecting the strong Group sales development. Subject to the completion of year-end closing procedures, the Group anticipates that operating profit (EBIT) will amount to EUR 228 million in fiscal year 2021 (2020: minus EUR 236 million), with the fourth quarter contributing an EBIT of EUR 100 million (2020: EUR 13 million).
The Group will publish its final results for 2021 and its financial outlook for the fiscal year 2022 on March 10, 2022.
If you have any questions, please contact:
Carolin Westermann Head of Corporate Communications Phone: +49 7123 94-86321 Email: carolin_westermann@hugoboss.com
Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 Email: christian_stoehr@hugoboss.com
GROUP.HUGOBOSS.COM TWITTER: @HUGOBOSS LINKEDIN: HUGO BOSSFinancial Publicationsnews-3662Thu, 04 Nov 2021 06:47:55 +0000HUGO BOSS records strong Q3 2021 results based on significantly improved momentum - Execution of ‘CLAIM 5’ growth strategy in full swing https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-strong-q3-2021-results-based-on-significantly-improved-momentum-execution-of-claim-5-growth-strategy-in-full-swingMetzingen, November 4, 2021
HUGO BOSS records strong Q3 2021 results based on significantly improved momentum Execution of ‘CLAIM 5’ growth strategy in full swing
Operational highlights Q3 2021
Currency-adjusted Group sales grow 40% to EUR 755 million; 7% above 2019 levels Momentum in Europe and the Americas accelerates – sales up 9% and 14% vs. Q3 2019 Strong growth in own online business continues; sales up 127% vs. Q3 2019 EBIT amounts to EUR 85 million in Q3; 3% above 2019 levels FY 2021 outlook: Currency-adjusted Group sales expected to increase by around 40% against the prior year; EBIT expected between EUR 175 million and EUR 200 million
Strategic progress along CLAIM 5
Digital-driven launch of second BOSS x Russell Athletic collection with one of the largest social media coverages in fashion week history – almost 4 billion impressions in 4 days HUGO BOSS Digital Campus fully operational; relaunch of hugoboss.com in early 2022 Organizational structure further strengthened via important personnel changes
“We look back on a very strong quarter with both sales and earnings exceeding pre-pandemic levels,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “We also made first great strides in successfully executing our CLAIM 5 strategy, particularly when it comes to boosting our brands among younger consumers. The spectacular launch of our second BOSS x Russell Athletic collection is a blueprint of how we will fully unlock our brands’ great potential together as a team in the future.”
In the third quarter of 2021, as pre-announced in October already, HUGO BOSS recorded a strong acceleration in its business recovery, with both sales and earnings exceeding pre-pandemic levels for the first time. Group sales amounted to EUR 755 million, representing a currency-adjusted increase of 40% against the prior-year period (Q3 2020: EUR 533 million). In Group currency, this corresponds to an increase of 42%. Consequently, on a two-year-stack basis, currency-adjusted sales were up 7% as compared to the third quarter of 2019 (Q3 2019: EUR 720 million). A global store opening rate of around 95% as well as a meaningful uplift in consumer sentiment – particularly across Europe and the Americas – contributed to strong sales growth in the three-month period. Besides that, the Company successfully executed several key brand, product, and sales initiatives as part of its CLAIM 5 strategy, thereby driving brand relevancy for BOSS and HUGO and leveraging global business opportunities.
Strength in casualwear continues with sales up double-digits versus 2019 Both brands, BOSS and HUGO, posted strong double-digit growth in the third quarter with currency-adjusted sales up 38% and 51% against the prior-year period. Also compared to 2019 levels, sales increased 6% for BOSS and 14% for HUGO, both currency-adjusted. In particular, the brands’ casualwear offerings continued their strong growth trajectory, with BOSS and HUGO each posting double-digit sales increases in casualwear as compared to 2019 levels. Also demand for the brands’ formalwear offerings picked up noticeably in the third quarter, reflecting the reoccurrence of social events over the summer.
Momentum in Europe and the Americas strongly accelerates With nearly all stores back in operation, Europe and the Americas recorded a particular strong performance in the third quarter. Consequently, as compared to Q3 2020, currency-adjusted sales in Europe increased 38%, translating into growth of 9% on a two-year-stack basis. In the Americas, revenues almost doubled versus the prior-year period, up 94% currency-adjusted, thereby exceeding 2019 levels by 14%. In the Asia/Pacific region, renewed COVID-19-related restrictions – including temporary store closures – weighed on consumer sentiment in various markets. As a result, revenues remained 1% below the prior-year level and 14% below that of 2019.
Strong dynamic in own retail business with double-digit growth vs. 2019 rom a channel perspective, currency-adjusted revenues in the Company’s own retail business were up 40% on the prior-year level, translating into growth of 13% on a two-year-stack basis. The Group’s own online business continued its robust performance also in the third quarter of 2021, posting strong double-digit growth versus the prior-year period with currency-adjusted revenues up 37%. Compared to 2019, sales on hugoboss.com and on self-managed partner websites were up 127%, currency-adjusted. In the wholesale channel, currency-adjusted sales also grew 40% compared to the prior-year period. As a consequence, revenues in this channel remained only 1% below 2019 levels.
Strong increase in EBIT in the third quarter In the third quarter of 2021, HUGO BOSS generated an operating profit (EBIT) of EUR 85 million, well above the prior-year level (Q3 2020: EUR 15 million). This development reflects the strong Group sales development as well as significant operating expense leverage, particularly within own retail. Both effects more than compensated for a slight decline in gross margin, down 20 basis points compared to the prior year, largely reflecting the overall rise in global freight and duty cost. Compared to pre-pandemic levels, EBIT was up 3% (Q3 2019: EUR 83 million).
Free cash flow increased by 10% compared to the prior-year level, amounting to EUR 171 million in the third quarter of 2021 (Q3 2020: EUR 155 million). This development mainly reflects the strong increase in EBIT as well as further improvements in trade net working capital. Compared to 2019 levels, free cash flow generation even more than doubled.
HUGO BOSS raises outlook for the full year 2021 In light of the strong top- and bottom-line performance in the third quarter, HUGO BOSS increased its outlook for the current fiscal year. The Company now forecasts Group sales in fiscal year 2021 to increase by around 40% currency-adjusted (prior guidance: currency-adjusted increase of between 30% and 35%; 2020: EUR 1,946 million), with contributions expected from all regions. EBIT is now forecast to come to a level of between EUR 175 million and EUR 200 million in fiscal year 2021 (prior guidance: between EUR 125 million and EUR 175 million; 2020: minus EUR 236 million).
Strong initial progress in executing the new CLAIM 5 growth strategy In September, and fully in line with the strong strategic pillar ‘Boost Brands’ of the Company’s new CLAIM 5 growth strategy, HUGO BOSS celebrated the spectacular phygital launch of the second BOSS x Russell Athletic collection. As part of Milan Fashion Week, the physical collection presentation in a baseball stadium featured numerous celebrities including Gigi Hadid, Irina Shayk, and TikToker Khaby Lame, while setting the stage for extensive activation on social media. Several high-profile influencers including Chiara Ferragni, Fedez, and Fai Khadra as well as TikTok sensations Elevator Boys, and Younes Zarou, all shared their experiences of the day. The huge digital buzz created globally made this collection launch the largest social-first event in the history of HUGO BOSS, generating almost 4 billion impressions and over 25 million engagements across all social media channels in only 4 days.
The BOSS x Russell Athletic collaboration not only kicks off a new era when it comes to turning consumers into fans. It also strongly emphasizes the ambition of establishing BOSS as a true 24/7 lifestyle brand by strengthening its position in the crucial casualwear segment. The collection fully lives up to the strong claim that ‘Product is King,’ uniting the unique tailoring expertise of BOSS with the sportswear aesthetic of Russell Athletic and ensuring a clear point of difference in every style offered. The 60 menswear and womenswear pieces celebrate team spirit and were designed to appeal to a whole new generation of BOSS fans around the world. Exceptional collaborations like this will continue to be decisive for creating a buzz among younger consumers and enabling HUGO BOSS to realize the full potential of its brands in the future.
CLAIM 5 also contains a strong commitment to ‘Lead in Digital,’ enabling HUGO BOSS to deliver on its vision to become the premium tech-driven fashion platform worldwide. In this context, execution at the recently established HUGO BOSS Digital Campus – based in Metzingen, Germany and Porto, Portugal – is already in full swing. Intended to further drive the Company’s global e-commerce business, CRM, and tech capabilities, one of the campus’ first priorities is to successfully implement the global relaunch of hugoboss.com, scheduled for early 2022. The new online flagship for BOSS and HUGO will offer various state-of-the-art functionalities, all strongly enhancing the online customer journey and driving traffic as well as conversion. Following a clear mobile-first approach, the Company will establish a best-in-class e-commerce experience. Consumers around the world will also experience both brands in a completely new look and feel, thereby incorporating the new branding refresh for BOSS and HUGO.
Over the last several months, and in accordance with its strategic claim to ‘Organize for Growth,’ HUGO BOSS has further strengthened its organizational structure. A number of personnel changes within the senior management team have been implemented, all aimed at successfully executing CLAIM 5 in the years to come. In sales, Judith Sun, Managing Director Greater China, ensures HUGO BOSS will leverage the full potential of the important Chinese market, while Luigi Boiocchi, Managing Director Emerging Markets and Russia, leads the newly created Hub Emerging Markets & Russia. Strengthening the brand organization, Kristina Szász, Senior Vice President Business Unit BOSS Womenswear, drives the realignment of the important BOSS Womenswear business, while Christopher Körber, Managing Director Ticino and Business Unit Lead for Shoes & Leather Accessories, Bodywear & Hosiery, Knitwear, and Shirts, focuses on exploiting the full potential of several key business areas. In marketing, Miah Sullivan, Senior Vice President Global Marketing & Brand Communications, will strongly contribute to the Company-wide ambition of becoming a top 100 global brand by substantially growing brand value for BOSS and HUGO.
If you have any questions, please contact:
Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.com
Carolin Westermann Head of Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.comFinancial Publicationsnews-3639Thu, 14 Oct 2021 19:41:00 +0000HUGO BOSS records strong top- and bottom-line improvements in Q3 2021 and raises guidance for full year 2021https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-strong-top-and-bottom-line-improvements-in-q3-2021-and-raises-guidance-for-full-year-2021Metzingen, October 14, 2021
HUGO BOSS RECORDS STRONG TOP- AND BOTTOM-LINE IMPROVEMENTS IN Q3 2021 AND RAISES GUIDANCE FOR FULL YEAR 2021
Currency-adjusted Group sales increase 40% to EUR 755 million, up 7% vs. Q3 2019 EBIT amounts to EUR 85 million, up 3% vs. Q3 2019 FY 2021 outlook: Currency-adjusted Group sales now expected to increase by around 40% against the prior year; EBIT now expected between EUR 175 million and EUR 200 million
In light of a further strong acceleration in its business recovery in the third quarter of 2021, for the first time, HUGO BOSS recorded sales and earnings above pre-pandemic levels, thereby significantly exceeding overall market expectations. On a preliminary basis, currency-adjusted Group sales increased 40% as compared to the prior-year period. In Group currency, revenues were up 42%, totaling EUR 755 million in the three-month period (Q3 2020: EUR 533 million). Compared to the third quarter of 2019, currency-adjusted Group sales increased 7% (Q3 2019: EUR 720 million), driven by a particular strong performance in Europe and the Americas.
In Europe, sales increased 38% as compared to the prior-year period, translating into sales growth of 9% on a two-year stack basis, both currency-adjusted. In the Americas, sales almost doubled versus the prior-year level, up 94% currency-adjusted. Consequently, currency-adjusted sales exceeded 2019 levels by 14%. In Asia/Pacific, where renewed COVID‑19 related restrictions, including temporary store closures, weighed on consumer sentiment in various key markets, sales remained 1% below the prior-year level and 14% below that of 2019. While also in mainland China, sales decreased 9% against the prior-year level, they were up 15% on a two-year stack basis.
Sales in the Company’s own retail business were up 40% on the prior-year level, translating into growth of 13% on a two-year stack basis, both currency-adjusted. The Group’s own online business continued its robust performance also in the third quarter of 2021, posting strong double-digit growth of 37% versus the prior-year period, and growth of 127% on a two-year stack basis, both currency-adjusted. In the wholesale channel, currency-adjusted sales also grew 40% versus the prior-year period, and remained only 1% below 2019 levels.
In the third quarter of 2021, on a preliminary basis, HUGO BOSS generated an operating profit (EBIT) of EUR 85 million, well above the prior-year level (Q3 2020: EUR 15 million). This development reflects the strong Group sales development as well as operating expense leverage, particularly within own retail. Compared to pre-pandemic levels, EBIT was up 3% (Q3 2019: EUR 83 million).
In light of the strong top- and bottom-line performance in the third quarter, HUGO BOSS increases its outlook for the current fiscal year. The Company now forecasts Group sales in fiscal year 2021 to increase by around 40% currency-adjusted (prior guidance: currency-adjusted increase between 30% and 35%; 2020: EUR 1,946 million), with contribution expected from all regions. EBIT is now forecast to come to a level of between EUR 175 million and EUR 200 million in fiscal year 2021 (prior guidance: between EUR 125 million and EUR 175 million; 2020: minus EUR 236 million).
HUGO BOSS will publish its full third quarter 2021 results on November 4 (7:30 a.m. CET). Conference calls, including webcasts, will also be held on that day for media representatives as well as financial analysts and investors.
If you have any questions, please contact:
Carolin Westermann Head of Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com Christian Stöhr Vice President Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-3564Wed, 04 Aug 2021 08:12:51 +0000HUGO BOSS presents new growth strategy ‘CLAIM 5’ aimed at doubling sales to EUR 4 billion by 2025https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-presents-new-growth-strategy-claim-5-aimed-at-doubling-sales-to-eur-4-billion-by-2025-1Metzingen, August 4, 2021
Hugo boss presents new growth strategy ‘claim 5’ aimed at doubling sales to eur 4 billion by 2025
‘CLAIM 5’ to accelerate growth across all brands, touchpoints, and geographies Branding refresh to revitalize and elevate relevance of BOSS and HUGO Significant investments in product, brand, and digital to win over a younger consumer Return to strong EBIT margin level of around 12% targeted by 2025 Cumulative free cash flow of around EUR 2 billion targeted until 2025
Today, HUGO BOSS introduces its new 2025 growth strategy ‘CLAIM 5’ and provides its mid-term financial ambition. Over the next five years, the Company is fully committed to strongly accelerate top-line growth, claim its position in the consumers’ minds, and win market share for its strong brands BOSS and HUGO.
“It is our vision to become the leading premium tech-driven fashion platform worldwide and in this context, we will revolutionize the way in which we interact with consumers,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS AG. “Our ambition is to double our business to EUR 4 billion in revenues by 2025 and to become one of the top-100 global brands.”
To deliver on its vision and ambition of becoming the premium tech-driven fashion platform worldwide, and one of the top-100 global brands, HUGO BOSS introduces its ‘CLAIM 5’ strategy, which puts the consumer at the core of its business activities more than ever before. ‘CLAIM 5’ is based on five strong pillars: Boost Brands, Product is King, Lead in Digital, Rebalance Omnichannel, and Organize for Growth. It also includes a bold commitment to sustainability, together with a strong executional road map and a clear plan on empowering people and teams.
CLAIM 1 – Boost Brands
To strongly elevate brand relevance, the Company is refreshing BOSS and HUGO – from logos over marketing, to brand new designs in retail and digital. As such, customers will experience both brands in a completely new look and feel. To become the leading power brands, it is the ambition to achieve around EUR 2.6 billion in BOSS Menswear sales and to double BOSS Womenswear sales to around EUR 400 million by 2025. This will be realized by enhancing the overall perception of BOSS as a lifestyle brand, increasing brand relevance, and strongly focusing on digital. The Company also aims at driving around EUR 800 million of sales for HUGO by building brand power, increasing brand awareness – with a dedicated marketing push – and driving geographical expansion. The Company’s license business – covering a variety of products including fragrances, watches, and eyewear, among others – is set to contribute up to EUR 200 million of revenues by 2025.
Two clearly distinguished marketing strategies – with a strong focus on digital as well as exceptional collaborations – are set to create excitement among consumers and unleash the full potential of BOSS and HUGO. Overall, incremental marketing spend will be more than EUR 100 million between now and 2025.
CLAIM 2 – Product is King
With product at the center of its new strategy, HUGO BOSS will create products to be worn 24/7 across all different wearing occasions. While casualization and comfort are key, HUGO BOSS will strongly invest in its price-value proposition to ensure premium quality as well as high levels of innovation and sustainability. In doing so, the BOSS brand will foster its unique positioning in the premium/affordable luxury segment. To become the first touchpoint for younger consumers, the HUGO strategy builds on a broad range of commercial and contemporary pieces reflecting the authentic and unconventional HUGO style.
CLAIM 3 – Lead in Digital
Digital is key in ensuring a personalized omnichannel consumer journey. It is also enabling HUGO BOSS to deliver on its vision to become the premium tech-driven fashion platform worldwide. The 2025 strategy therefore includes a strong commitment to further digitalizing the Company’s business activities along the entire value chain, from trend detection and digital product development to AI-enabled pricing capabilities and the global rollout of digital showrooms. This also includes establishing a digital campus to further expand the Company’s digital capabilities and to improve the consumers’ experience by leveraging data. The HUGO BOSS Digital Campus, based in Metzingen, Germany and Porto, Portugal, will strengthen the Company’s online activities as well as analytical, technical, and executional capabilities. It extends HUGO BOSS’ digital know-how with immediate effect by combining the Company’s own expertise with that of experts on data execution. Overall, HUGO BOSS will step up its investments into digital by more than EUR 150 million by 2025.
CLAIM 4 – Rebalance Omnichannel
To translate brand power into all consumer touchpoints, HUGO BOSS will rebalance its distribution footprint and strongly accelerate its omnichannel activities in the years to come. In this context, the Company aims at ensuring a seamless brand experience across all consumer touchpoints. Boosting its digital revenues to more than EUR 1 billion by 2025 will be a key element in this regard, and enable HUGO BOSS to grow its digital penetration to a level between 25% and 30% of Group sales. The Company’s digital ambition includes a strong commitment to all digital touchpoints – from its own website hugoboss.com to its online partner businesses, including digital pure players, leading marketplaces as well as bricks and clicks.
HUGO BOSS will also unleash the full potential of retail as it aims at growing brick-and-mortar retail revenues to around EUR 2 billion by 2025. Growth will be driven by an increase in store productivity of around 3% per year, as well as the further optimization and refreshing of the Company’s global store network. In this context, around 80% of own stores are set to be refurbished during the next three years already, with overall investments into brick-and-mortar retail targeted to total around EUR 500 million for the period until 2025. HUGO BOSS also intends to increase brick-and-mortar wholesale revenues to a level of around EUR 1 billion by 2025. The Company is fully committed to
reclaiming its position in this important channel by strengthening existing partnerships and regaining market share in key product categories.
CLAIM 5 – Organize for Growth
HUGO BOSS will drive growth across all geographies while further balancing its global footprint. In Asia/Pacific, revenues are set to grow at a low-teens compound annual growth rate (CAGR 2019-2025). As a consequence, the region’s revenue share will grow to more than 20% within the next five years. Mainland China will continue to be of particular importance, with the Company putting a strong focus on the Chinese consumer also in the years to come. HUGO BOSS is equally committed to fostering its leading position in premium apparel in Europe, where sales are forecast to grow at a low- to mid-single-digit rate per annum (CAGR 2019-2025). Key markets such as Germany, the UK, and France are all set to strongly contribute to growth by unleashing their full potential in retail, reclaiming wholesale with strong partners, and driving digital growth across all consumer touchpoints. In the Americas, revenues are projected to grow at a mid-single-digit CAGR between 2019 and 2025, as the Company will strongly push the 24/7 brand image by fully leveraging the casualization trend in the important U.S. market.
‘Organize for Growth’ also means leveraging the Company’s existing operations infrastructure as the future platform for speed and growth. HUGO BOSS will therefore foster modular and digital product creation, continue to shorten lead times, increase flexibility in production and logistics, as well as push digitalization to further increase the overall efficiency and flexibility of its supply chain. By 2025, the Company aims at creating more than 90% of its products digitally while it also works towards reducing end-to-end lead times by around 30%.
At the same time, HUGO BOSS will intensify its sustainability efforts to deliver both meaningful and measurable impact as well as emotional engagement with the consumer. The Company’s ambitious sustainability targets include the aim for climate neutrality within its own area of responsibility by 2030 and throughout the entire value chain by 2045. In addition, HUGO BOSS will put particular emphasis on establishing an end-to-end circular business model. In this context, the Company aims to enable eight out of ten products to become circular by 2030.
“Our ‘CLAIM 5’ strategy is a clear vision for the Company with the consumer at its core – helping to enhance the consumer journey, improve our product offering, increase our relevance, and drive growth across all geographies,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS AG. “Our aim is to grow HUGO BOSS in a fast but sustainable way, and I am confident that we have the right team and strategy to successfully execute and lead our Company into the future.”
2025 Financial Ambition
With its new strategy, HUGO BOSS aims to double sales to EUR 4 billion by 2025, which implies a strong CAGR of 16% taking 2020 as the base year, and 6% as compared to the pre-pandemic level of 2019. To successfully deliver on its strategy, HUGO BOSS will step-up investments into its products, brands, digital capabilities, as well as its global store network, all aimed at fueling industry-leading top-line growth. Consequently, over the next five years, value creation will shift from driving relative margin improvements to delivering strong top-line growth, absolute profitability improvements, as well as superior free cash flow generation.
Until 2025, gross margin is forecast at a level of between 60% and 62%, reflecting product investments to enhance the price-value proposition and fuel top-line growth. At the same time, HUGO BOSS is confident of returning to a strong EBIT margin of around 12% by 2025, translating into an EBIT CAGR of 6% between 2019 and 2025. Investments into the business will be compensated for by leveraging operating overheads as well as strong efficiency gains to be realized by optimizing the Company’s global store network. The latter relates to ongoing relocation and rightsizing initiatives, selective store openings and closings, as well as rent renegotiations. Driven by the significant top- and bottom-line growth, HUGO BOSS will generate substantial cumulative free cash flow between now and 2025. Improvements in trade net working capital and the smart and efficient use of capital expenditure will provide further support to free cash flow development. The majority of cumulative free cash flow – around EUR 2 billion until 2025 – will either be reinvested into the Company or distributed to shareholders through regular dividend payouts. In this context, the Company’s payout ratio until 2025 will be in a range of between 30% and 50% of net income attributable to shareholders.
If you have any questions, please contact:
Christian Stöhr Vice President Investor Relations and Corporate Communications Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.com
Carolin Westermann Head of Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.com
GROUP.HUGOBOSS.COM
TWITTER: @HUGOBOSS
LINKEDIN: HUGO BOSSFinancial Publicationsnews-3560Wed, 04 Aug 2021 05:49:11 +0000HUGO BOSS strongly accelerates its business recovery – significant top- and bottom-line improvements in the second quarterhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-strongly-accelerates-its-business-recovery-significant-top-and-bottom-line-improvements-in-the-second-quarter-1Metzingen, August 4, 2021
HUGO BOSS strongly accelerates its business recovery – significant top- and bottom-line improvements in the second quarter
Currency-adjusted Group sales increase 133% as compared to Q2 2020 Sales remain only 4% below Q2 2019 levels, with all regions, channels, and brands contributing EBIT amounts to EUR 42 million in the second quarter Strong free cash flow generation of EUR 134 million FY 2021 outlook: Currency-adjusted Group sales to grow between 30% and 35%; EBIT expected between EUR 125 million and EUR 175 million
“Our strong performance in the second quarter impressively demonstrates the great potential of our two brands BOSS and HUGO,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS AG. “We are well prepared to further drive our business recovery also in the second half of the year. Looking ahead, I am convinced that our strong brands, diversified business model, and highly motived teams will enable HUGO BOSS to unlock its full potential in the years to come.”
In the second quarter of 2021, HUGO BOSS successfully accelerated its business recovery, recording strong top- and bottom-line improvements during the three-month period. The gradual easing of pandemic-related restrictions, including the termination of temporary lockdowns over the course of the quarter, as well as further progress made along vaccination campaigns, fueled consumer sentiment across the globe. On average, only around 20% of the Company’s global store network was temporarily closed during the second quarter.
Consequently, currency-adjusted Group sales increased 133% as compared to the prior-year period. Also in Group currency, sales more than doubled, up 129% to EUR 629 million (Q2 2020: EUR 275 million). Compared to the second quarter of 2019, the decline in currency-adjusted Group sales was limited to 4%, with all regions, channels, and brands contributing to this development.
Strong business recovery across all regions
Business recovery was clearly noticeable across all regions. While sales more than doubled in Europe (+130% currency-adjusted to EUR 385 million) and more than quintupled in the Americas (+416% currency-adjusted to EUR 123 million), currency-adjusted revenues in Asia/Pacific were up by 51% as compared to the prior-year period, totaling EUR 104 million.
Consequently, on a two-year-stack basis, currency-adjusted sales in Europe remained only 4% below 2019 levels, as the lifting of lockdowns and accompanying temporary store closures over the course of the quarter supported the business recovery in key markets. Sales in the UK exceeded 2019 levels, with currency-adjusted revenues up 7% on a two-year stack. In the Americas, sales remained 5% below 2019 levels, with the important U.S. market benefitting from a further uptick in local demand, thereby limiting the market’s sales decline to 6%, currency-adjusted. In Asia/Pacific, currency-adjusted sales were down 3% against the second quarter of 2019, with currency-adjusted sales in mainland China up 28% against the prior-year period and 33% on a two-year-stack basis.
Own online sales grow triple-digit on a two-year stack
From a channel perspective, HUGO BOSS more than doubled sales in own retail (+124% currency-adjusted to EUR 422 million) as against the prior-year quarter. Consequently, own retail sales remained only 5% below 2019 levels in the three-month period, with the vast majority of own retail stores back in operations towards the end of the quarter. The Company’s own online business continued its strong double-digit growth trajectory also in the second quarter. Sales in this channel recorded currency-adjusted growth of 27% against a particularly strong comparison base, implying triple-digit growth on a two-year stack (+122%). Sales in wholesale also more than doubled (+170% currency-adjusted to EUR 189 million) and came in 2% below 2019 levels. This mainly reflects partners’ strong demand for the Fall/Winter 2021 collections as well as additional business with selected on- and offline retailers in Europe.
Momentum in casualwear strongly accelerates
Sales for both brands, BOSS and HUGO, more than doubled compared to the second quarter of 2020, with currency-adjusted revenues up 139% and 102%, respectively. On a two-year-stack basis, sales for BOSS declined 5%, while HUGO returned to growth with sales up 2%, both currency-adjusted. Momentum for both brands’ casualwear offerings further accelerated in the three-month period, with currency-adjusted revenues being up double-digit on a two-year-stack basis. Formalwear sales also recorded a sequential improvement in the second quarter, benefitting from pent-up demand for occasionwear and businesswear.
Significant bottom-line improvements in the second quarter
In the second quarter of 2021, HUGO BOSS generated an operating profit (EBIT) of EUR 42 million (Q2 2020: minus EUR 250 million), reflecting the strong Group sales development as well as ongoing tight overhead cost control in the three-month period. The earnings development was also supported by the non-recurrence of impairment charges as well as negative inventory valuation effects recorded in the prior-year quarter. The latter particularly supported the Group’s gross margin develop­ment, up 670 basis points to 61.2%, and more than compensated for an overall intensified markdown level and higher sourcing costs.
Strong free cash flow generation of EUR 134 million
Free cash flow totaled EUR 134 million in the three-month period, a significant improvement compared to the prior-year period (Q2 2020: EUR 39 million) and in line with the level recorded in 2019. Besides the increase in EBIT, improvements in trade net working capital fueled the strong free cash flow generation, thereby once again emphasizing the strong internal financing capability of HUGO BOSS. The additional loan commitments – totaling EUR 275 million – that the Company secured in fiscal year 2020 to ensure high levels of financial flexibility during the pandemic expired at the agreed maturity date in June, without having been drawn at any point in time.
Business recovery expected to continue in the second half of 2021
Despite persisting uncertainties regarding the further development of the pandemic, HUGO BOSS is confident that the Company’s overall business recovery will continue in the second half of 2021. HUGO BOSS anticipates currency-adjusted Group sales in fiscal year 2021 to increase by between 30% and 35% (2020: EUR 1,946 million), with a contribution expected from all regions. EBIT is forecast to amount to between EUR 125 million and EUR 175 million in fiscal year 2021 (2020: minus EUR 236 million).
HUGO BOSS to present its 2025 strategy as part of today’s Investor Day
On August 4, the HUGO BOSS Managing Board will outline the Company's future strategic priorities and objectives at the Investor Day 2021, which will be held virtually. A press release on the 2025 strategy of HUGO BOSS will be distributed at 10:00 a.m. CEST, followed by the Managing Board’s presentations starting at 11:00 a.m. CEST.Financial Publicationsnews-3521Tue, 13 Jul 2021 17:56:58 +0000HUGO BOSS records strong top- and bottom-line improvements in Q2 2021 and provides financial guidance for fiscal year 2021https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-strong-top-and-bottom-line-improvements-in-q2-2021-and-provides-financial-guidance-for-fiscal-year-2021Press Release
HUGO BOSS records strong top- and bottom-line improvements in Q2 2021 and provides financial guidance for fiscal year 2021
Currency-adjusted Group sales increase 133% to EUR 629 million EBIT amounts to EUR 42 million in the second quarter FY 2021 outlook: Currency-adjusted Group sales to grow between 30% and 35%; EBIT expected between EUR 125 million and EUR 175 million
Metzingen, July 13, 2021. In light of a further strong business recovery, HUGO BOSS recorded significant top- and bottom-line improvements in the second quarter of 2021, thereby exceeding overall market expectations. On a preliminary basis, currency-adjusted Group sales increased 133% as compared to the prior-year period. Also in Group currency, sales more than doubled, up 129% to EUR 629 million in the three-month period (Q2 2020: EUR 275 million). Compared to the second quarter of 2019, the decline in Group sales was therefore limited to 4% only, currency-adjusted.
Business recovery was clearly noticeable across all regions. While currency-adjusted sales more than doubled in Europe (+130%) and more than quintupled in the Americas (+416%), currency-adjusted revenues in Asia/Pacific were up by 51%, as compared to the prior-year period. Consequently, on a two-year stack basis, currency-adjusted sales in Europe and the Americas remained 4% and 5% below 2019 levels, respectively. In Asia/Pacific, currency-adjusted sales were down 3% as against the second quarter of 2019, with currency-adjusted sales in mainland China up 28% against the prior-year period and 33% on a two-year-stack basis, respectively.
From a channel perspective, HUGO BOSS more than doubled currency-adjusted sales in both own retail (+124%) and wholesale (+170%) as against the prior-year quarter. While own retail sales remained 5% below 2019 levels in the three-month period, wholesale revenues were down 2% on a two-year-stack basis, both currency-adjusted. Within own retail, the Company’s own online business recorded currency-adjusted sales growth of 27% in the second quarter, implying growth of 122% on a two-year stack.
In the second quarter of 2021, on a preliminary basis, HUGO BOSS generated operating profit (EBIT) of EUR 42 million (Q2 2020: minus EUR 250 million), reflecting the strong Group sales development as well as ongoing tight overhead cost control in the three-month period. In addition, the non-recurrence of negative inventory valuation effects and impairment charges recorded in the prior-year quarter also contributed to this development.
Despite the persisting uncertainties regarding the further development of the pandemic, HUGO BOSS is confident that the Company’s overall business recovery will continue in the second half of 2021. Consequently, HUGO BOSS forecasts Group sales in fiscal year 2021 to increase by between 30% and 35% currency-adjusted (2020: EUR 1,946 million), with contribution expected from all regions. EBIT is forecast to come to between EUR 125 million and EUR 175 million in fiscal year 2021 (2020: minus EUR 236 million).
HUGO BOSS will publish its full second quarter 2021 results on August 4. On the same day, the Managing Board will outline the Company's future strategic priorities and objectives at the HUGO BOSS Investor Day 2021. An invitation to the respective events will be sent in due course.
If you have any questions, please contact:
Christian Stöhr Vice President Investor Relations and Corporate Communications Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.com
Carolin Westermann Head of Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.comFinancial Publicationsnews-3410Wed, 05 May 2021 05:20:59 +0000HUGO BOSS with solid start to the year as business recovery continueshttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-with-solid-start-to-the-year-as-business-recovery-continuesQuarterly Statement for Q1 2021
Metzingen, May 5, 2021
HUGO BOSS with solid start to the year as business recovery continues
Group sales decline limited to minus 8% in Q1, currency-adjusted Ongoing strong dynamic in mainland China as sales almost double Momentum in online business strongly accelerates with sales up 72% Casualwear sales return to mid-single-digit growth Positive EBIT of EUR 1 million generated in Q1
“Despite ongoing implications of the pandemic, especially in Europe, we have seen a solid and promising start into the year,” says Yves Müller, Spokesperson of the Managing Board of HUGO BOSS AG. “I am particularly pleased by the further progress along our strategic growth drivers – Online, mainland China and casualwear – which have all seen momentum further accelerating. All this makes us confident for the remainder of the year as we expect both sales and EBIT to recover noticeably in the further course of 2021.”
In the first quarter of 2021, HUGO BOSS successfully continued its gradual business recovery, limiting the overall sales decline to 8%, currency-adjusted. In Group currency, sales decreased 10% to EUR 497 million (Q1 2020: EUR 555 million). While the negative implications of the COVID-19 pandemic continued to weigh on key European markets, momentum further accelerated along the Company’s strategic growth drivers – Online, mainland China and casualwear. In addition, sequential improvements in the important U.S. business as well as a robust performance of the Group’s wholesale business contributed positively to the overall sales development in the first quarter.
Strong dynamic in mainland China continues
The pace and intensity of the Company’s business recovery significantly varied across regions in the reporting period. Sales in Asia/Pacific rose to EUR 101 million, reflect­ing a currency-adjusted increase of 39% compared to the prior year (Q1 2020: EUR 74 million). Growth was primarily driven by mainland China, where sales almost dou­bled as compared to the prior-year period, reflecting robust local demand as well as the successful execution of regional events such as Chinese New Year in February.
Also in the Americas, HUGO BOSS successfully continued its business recovery, with currency-adjusted sales down 11%. Consequently, in Group currency, sales amounted to EUR 80 million (Q1 2020: EUR 98 million). Also in the U.S. market, the sales decline was limited to 11% currency-adjusted, thereby recording a further sequential improvement as compared to previous quarters. This development was mainly driven by a noticeable pick-up in local demand, reflecting a robust rebound in consumer sentiment fueled by fiscal stimulus, strong economic data, as well as further progress in vaccinations.
In Europe, the lasting implications of the pandemic continued to put a strain on the Company’s business. With an average of almost 50% of Europe’s own retail points of sale closed during the first three months of 2021, in particular the extended lock­downs and accompanying temporary store closures weighed on consumer sentiment in several key markets, including the UK, France, and Germany. In addition, persisting social distancing measures and travel restrictions continued to burden the overall business recovery of the region. Consequently, currency-adjusted sales in Europe decreased 17% to EUR 299 million (Q1 2020: EUR 367 million).
Momentum in online business strongly accelerates with sales up 72%
The Company’s own online business gained further momentum in the first quarter of 2021, with currency-adjusted sales up 72%. Growth was driven by strong double-digit improvements at both the Company’s online flagship hugoboss.com as well as at partner websites operated in the concession model. The former also saw the further expansion of hugoboss.com into 12 additional markets during the first quarter, thereby increasing the global reach of hugoboss.com to 59 markets globally.
The acceleration in online growth partly compensated for the decline in the Group’s own brick-and-mortar retail business. Overall, retail sales decreased 14% in the first quarter, while wholesale sales were up 1%, both currency-adjusted. The wholesale channel benefitted from a robust order intake for the Spring/Summer 2021 collections of BOSS and HUGO, which were delivered to partners in the first three months of 2021. Growth was also supported by shifts in the delivery of these collections largely from the second quarter into the first quarter, aimed at ensuring product availability after the lifting of lockdowns.
Casualwear returns to growth
While both brands, BOSS and HUGO, posted currency-adjusted sales declines of 8% and 6%, respectively, their casualwear offerings once again stood out positively. Overall, casualwear sales, which accounted for approximately 50% of total sales in the first quarter, returned to mid-single-digit growth, reflecting healthy demand across all product categories, including polo shirts, sweatshirts, tracksuits, and sneakers, as well as strong sell-through of the latest “BOSS x Russell Athletic” and “BOSS x NBA” casualwear capsules.
In March, BOSS celebrated the launch of its joint capsule collection with American sportswear pioneer Russell Athletic. The digital event was supported by many high-profile influencers, creating huge buzz for “BOSS x Russell Athletic” on social media. The collection resonated particularly well among younger customers, with many of the streetstyle-inspired casualwear pieces having been sold out shortly after the launch. In February, BOSS launched its exclusive capsule collection in cooperation with the National Basketball Association (NBA). The logo-inspired casualwear pieces were extremely well received especially among younger U.S. customers, providing further tailwind for the brand’s casualwear offering.
Tight cost control supports EBIT development
In light of the persisting negative implications of COVID-19 on key European markets in particular, HUGO BOSS continued its tight cost management during the first three months of 2021, putting a particularly strong emphasis on reducing selling and distribution expenses. The savings achieved more than compensated for a decline in the gross profit margin. The latter was mainly attributable to higher markdown activity in the wake of the pandemic as compared to the prior-year period. Overall, EBIT amounted to plus EUR 1 million in the first quarter compared to minus EUR 14 million in the prior-year period.
HUGO BOSS expects its global business to recover noticeably in 2021
Due to ongoing, short-term uncertainties with regard to extended lockdowns in key European markets in particular, HUGO BOSS is not able to provide a precise outlook for full year 2021. At the same time, the Company remains confident that the global retail environment will continue to gradually improve and expects its global business to recover noticeably in the further course of fiscal year 2021. In this context, the anticipated further progress in global vaccination campaigns and the gradual lifting of lockdowns and restrictions on public life are expected to fuel consumer sentiment, especially in the second half of the year. Assuming that no new lockdowns, or sub­stantial extensions of current lockdowns beyond what is already known, will be implemented, HUGO BOSS is confident that sales in the second quarter will almost double those of the prior-year period, which was severely impacted by the global spread of COVID-19. In addition, the Company remains optimistic of also generating a positive EBIT in Q2.
If you have any questions, please contact:
Christian Stöhr Vice President Investor Relations and Corporate Communications Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.com
Carolin Westermann Head of Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.comFinancial Publicationsnews-3360Thu, 11 Mar 2021 06:41:00 +0000HUGO BOSS records operating profit in the fourth quarter – Gradual business recovery expected for 2021https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-records-operating-profit-in-the-fourth-quarter-gradual-business-recovery-expected-for-2021Financial Publicationsnews-3237Tue, 03 Nov 2020 16:12:00 +0000HUGO BOSS returns to profit in Q3 as gradual business recovery continues https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-returns-to-profit-in-q3-as-gradual-business-recovery-continuesHUGO BOSS returns to profit in Q3 as gradual business recovery continues
Group sales decline limited to minus 24% (currency-adjusted) Online business continues double-digit growth trajectory – sales up 66% Momentum in mainland China accelerates with revenues up 27% EBIT returns to positive territory with plus EUR 15 million Strong free cash flow generation of EUR 155 million
“We made further progress in the recovery of our business, with great contribution coming from Online and mainland China. Our profitability returned to positive territory, and we even accelerated our strong cash flow generation,” says Yves Müller, Spokesperson of the Managing Board of HUGO BOSS AG. “Further driving the global recovery of our business will remain a key priority for us as we approach year-end. At the same time, we will continue to push ahead with the execution of our strategic initiatives to return to our former growth trajectory.”
In the third quarter, HUGO BOSS successfully continued its gradual business recovery. With the vast majority of its own stores back in operation, particularly the Group’s own retail business recorded a considerably more robust performance as compared to the first half of the year, with own retail revenues down by 20%, currency-adjusted. While local demand in key markets picked up noticeably as compared to the previous quarter, business with tourists continued to suffer from international travel restrictions. Overall, Group sales amounted to EUR 533 million in the third quarter, representing a currency-adjusted decline of 24% against the prior-year period (Q3 2019: EUR 720 million). In reporting currency, this corresponds to a decrease of 26%.
Online business continues its double-digit growth trajectory
The Group’s own online business was able to maintain its strong momentum, with currency-adjusted sales up 66% in the third quarter. Supported by the accelerated consumer demand shift towards digital, sales on hugoboss.com and the Group’s self-managed offerings on key partner websites recorded strong improvements in both traffic and conversion rates. The successful expansion of hugoboss.com to 24 additional markets in June and August also contributed to the increase. Thereby, the period from July to September marks the twelfth consecutive quarter with significant double-digit online sales growth for HUGO BOSS.
Momentum in mainland China further accelerates
While all three regions recorded a business recovery in the third quarter, the pace of recovery was most pronounced in Asia/Pacific, with currency-adjusted sales down 14%. Mainland China, a strategically important market for HUGO BOSS, stood out positively again. With revenues up 27% currency-adjusted, mainland China gained further momentum in the three-month period, thus successfully continuing its recovery that already started back in March. While this development is also supported by a repatriation of local demand, HUGO BOSS once again witnessed a strong improvement in conversion rates in brick-and-mortar retail as well as high double-digit online sales growth.
In Europe, currency-adjusted sales declined by 21% against the prior-year period. While the region saw a solid rebound of local demand in key markets such as the UK and France, the restraint in tourism continued to weigh on its overall business recovery. In the Americas, currency-adjusted sales were down 41%, as the negative implications of the pandemic continued to weigh on the Company’s U.S. business, both in own retail and wholesale.
Profitability returns to positive territory in the third quarter
Despite the overall sales decline, the Group’s operating profit (EBIT) returned to positive territory in the third quarter. This development was driven by tight cost control and the successful execution of the Company’s expense-reduction measures. Consequently, HUGO BOSS generated a positive EBIT of EUR 15 million in the three-month period (Q3 2019: EUR 83 million).
Safeguarding the financial stability of HUGO BOSS continued to be a key priority in the past months. In this context, the Company made further progress in successfully executing its various measures regarding cash flow protection. As a result, the Group generated a strong free cash flow of EUR 155 million in the three-month period (Q3 2019: EUR 63 million). At the same time, the financial flexibility of HUGO BOSS remains sound. The Company’s revolving syndicated loan, which totals EUR 633 million, was only utilized in the amount of EUR 134 million at the end of September. Additionally, the Group has not drawn on the additional credit commitments totaling EUR 275 million that it secured in the second quarter.
Further business recovery remains key priority
Based on its overall position of financial strength, HUGO BOSS will continue to focus on driving the further recovery of its business going forward. In this context, the Group will resolutely exploit its global sales opportunities during the important final quarter of the 2020 fiscal year, in particular with regard to its strategic growth drivers Online and China. At the same time, HUGO BOSS expects continuing uncertainty with regard to the further development of the pandemic. Many key markets are currently witnessing a surge in the number of COVID-19 infections, which in turn weighs on consumer behavior. Besides that, further countermeasures taken by governments to contain the spread of the virus are yet to be seen.
Driving brand heat through numerous product and marketing initiatives
Beyond the further recovery of the Group’s overall business, elevating the desirability of its brands will continue to be a focal point for HUGO BOSS. To create awareness and strengthen the profile of BOSS and HUGO among younger target groups, future brand and marketing initiatives will be centered on emotional events as well as exclusive collaborations with brands and ambassadors. Social media will take center stage, with all communication initiatives build around it.
In September, BOSS revealed its Spring/Summer 2021 Menswear and Womenswear collections with a live runway show at Milan Fashion Week, livestreamed on hugoboss.com, Instagram, and for the first time on TikTok. The show continued the decisive move towards casualization, revealing a sportier and younger version of the BOSS man and woman than ever before. A brand experience event took place simul­taneously in Shanghai across Chinese digital platforms WeChat and T-Mall. The event concluded with the reveal of an exclusive collection of the upcoming holiday campaign BOSS x Justin Teodoro, which was offered to Chinese customers during an exclusive 48 hours “see now buy now” shopping experience.
Earlier in September, BOSS announced the partnership with German fashion influencer and entrepreneur Caro Daur on an exciting womenswear capsule. Staying true to the brand’s elegant aesthetic while fusing both parties’ individual approaches to style, the “BOSS curated by Caro Daur” styles are currently available in BOSS stores globally and online at hugoboss.com. The month of September also saw the launch of an exclusive BOSS menswear capsule co-created by British boxer Anthony Joshua. In a palette of navy and gold, the casual collection brings together Joshua’s unstoppable spirit with elegant BOSS style. For both collections, the Group has seen an affirmative response with regards to sales with many pieces sold-out on hugoboss.com shortly after their launch.
Another exciting collaboration will come to life during the upcoming Pre-Fall 2021 season, when BOSS will team up with the iconic American brand Russell Athletic. This unexpected capsule collection will range from apparel to shoes and accessories, with a clear focus on casualwear and athleisure wear, and become available from March 2021 onwards. The looks unite the best of both worlds – the expert tailoring and signature style of BOSS Menswear with the instantly recognizable aesthetic of the American sportswear pioneer – and will enable BOSS to further strengthen its positioning within casualwear.
If you have any questions, please contact:
Christian Stöhr Senior Head of Investor Relations and Corporate Communications Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.com
Carolin Westermann Head of Corporate Communications Phone: +49 7123 94-86321 E-mail: carolin_westermann@hugoboss.comFinancial Publicationsnews-3084Tue, 04 Aug 2020 05:31:39 +0000HUGO BOSS successfully executes its measures to protect cash flowhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-successfully-executes-its-measures-to-protect-cash-flowQuarterly Statement for Q2 2020
Metzingen, August 4, 2020
HUGO BOSS successfully executes its measures to protect cash flow
Temporary store closures weigh on Q2 financial performance Momentum in online business strongly accelerates – sales up 74% in Q2 Sales in mainland China return to double-digit growth in June Strong free cash flow generation of EUR 39 million in the second quarter Operating result (EBIT), excluding non-cash impairment charges1, amounts to minus EUR 124 million
“The second quarter was as challenging as expected. Our relentless focus on executing our measures to protect the financial stability of HUGO BOSS has yielded strong cash flow generation in Q2,” says Yves Müller, Spokesperson of the Managing Board of HUGO BOSS AG. “It is equally encouraging to see that the momentum along our strategic growth drivers China and Online has either returned quickly or further accelerated. Now, we will put all our effort behind the further recovery of our operations in order to return to top- and bottom-line growth as soon as possible.”
In the second quarter of fiscal year 2020, both the retail sector and the apparel industry were severely impacted by the global spread of COVID-19. Temporary lockdowns resulting in widespread store closures, a sharp deterioration in consumer sentiment, as well as international travel restrictions weighed on global industry sales.
Temporary store closures weigh on Q2 sales performance
With approximately 50% of its global store network closed on average during the course of the second quarter, business of HUGO BOSS was significantly impacted by the pandemic. This was particularly evident in Europe and the Americas – by far the Company’s largest regions. In both regions, the vast majority of the Company’s stores and shop-in-shops were closed from mid-March until the end of May, thus significantly weighing on sales and earnings development. Besides the severe disruption of its own retail operations, the Group’s global wholesale business also faced a challenging quarter. Large-scale temporary closures of wholesale points of sale resulted in significantly lower deliveries to wholesale partners, particularly during the months of April and May.
Consequently, Group sales declined to EUR 275 million in the second quarter, corresponding to a decrease of 59% against the prior-year period, both in reporting currency and currency-adjusted (Q2 2019: EUR 675 million). While own retail sales decreased 58%, wholesale revenues fell 64%, both currency-adjusted.
Momentum in the Group’s own online business accelerates strongly
The Group’s own online business, however, continued to enjoy very strong momentum in the second quarter. At a growth rate of 74%, currency-adjusted sales on hugoboss.com and self-managed offerings on important partner websites further accelerated in Q2. This development was due to significant double-digit sales improvements across all three regions – Europe, the Americas, and Asia/Pacific. In doing so, the period from April to June marks the strongest quarterly performance out of eleven consecutive quarters with significant double-digit online sales growth for HUGO BOSS.
Sales in mainland China return to double-digit growth trajectory
From a geographical perspective, the sales performance varied across regions as different markets were experiencing different stages of the pandemic. Currency-adjusted sales in Europe and the Americas declined 59% and 82%, respectively, as temporary store closures and sharp declines in tourism flows weighed on both regions. In addition, unrest and demonstrations in May and June put an additional strain on the Group’s U.S. business.
In Asia/Pacific, currency-adjusted sales were down 36%. While most of the region’s markets were also severely affected by the economic consequences of the pandemic, mainland China stood out positively, as it continued its gradual recovery that started already towards the end of March. After returning to growth in May, the month of June has seen a further acceleration with currency-adjusted sales in this strategically important market up double-digits. This development was driven by an overall improvement in consumer sentiment, a robust conversion in brick-and-mortar retail, as well as a strong performance in the market’s own online business, where sales more than doubled in the three-month period.
Successful execution of comprehensive measures to protect cash flow
In the wake of COVID-19, protecting its financial flexibility and stability was a top priority for HUGO BOSS in the second quarter. Already back in May, the Company therefore announced comprehensive measures with a total volume of around EUR 600 million to secure its cash flow. Over the course of the second quarter, HUGO BOSS has made significant progress in implementing these measures by strongly focusing on reducing operating expenses, postponing all non-essential investments, and substantially reducing inventory inflow. Overall, this strongly contributed to the generation of free cash flow amounting to EUR 39 million in the second quarter, hence significantly cushioning the impact of the sales and earnings decline on free cash flow (Q2 2019: EUR 133 million).
In addition, HUGO BOSS has taken further steps to safeguard its financial flexibility as it has successfully exercised the increase option of its existing revolving syndicated loan. The latter now totals EUR 633 million, of which EUR 212 million was utilized at the end of June. In this context, the Company has also agreed with its syndicate banks to suspend the financial covenant under the syndicated loan until the end of June 2021. On top of that, HUGO BOSS has secured further credit commitments totaling EUR 275 million, provided by six international banks and partially backed by KfW, Germany’s state-owned development bank. The credit commitments have a maturity until June 2022. At the end of the reporting period, these credit facilities were not drawn.
Economic consequences of COVID-19 weigh on EBIT development in Q2
Besides the severe sales decline, substantial inventory valuation effects impacted the Group’s earnings development. In addition, impairment charges in the amount of EUR 125 million entirely related to the pandemic’s impact on the Group’s retail business weighed on the operating result (EBIT). The impairment charges, however, are non-cash in nature and do not affect the Company’s liquidity. When excluding those impairment charges, EBIT amounted to minus EUR 124 million (Q2 2019: plus EUR 80 million). Various expense-reduction measures initiated at an early stage enabled HUGO BOSS to considerably cut its operating expenses in the second quarter, thereby cushioning the earnings decline to some extent. When including the impairment charges, EBIT for the second quarter amounted to minus EUR 250 million.
HUGO BOSS expects gradual improvement for the second half of 2020
As the further development of the pandemic in many key markets remains uncertain, HUGO BOSS is not able to provide a reliable sales and earnings forecast for full year 2020. Nevertheless, the Company remains optimistic that the global retail environment will continue to gradually improve. This should also positively impact the Group’s sales and earnings development in the second half of the year and allow HUGO BOSS to make further progress along its overall recovery, which has started at the beginning of May. Retail sales trends during the second quarter have shown a sequential improvement month by month. This positive trend has also continued so far in Q3, as HUGO BOSS has recorded further improvements in its global retail operations during the month of July.
1 HUGO BOSS recorded non-cash impairment charges in the amount of EUR 125 million in Q2, that were entirely attributable to the pandemic’s negative impact on the Group’s retail business.Financial Publicationsnews-2919Tue, 05 May 2020 05:35:27 +0000HUGO BOSS resolutely tackles the challenges posed by the pandemic – healthy balance sheet structure and comprehensive measures ensure liquidityhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-geht-herausforderungen-im-zuge-der-pandemie-entschlossen-an-gesunde-bilanzstruktur-und-umfangreiche-massnahmen-sichern-liquiditaet-1Quarterly Statement for Q1 2020
Metzingen, May 5, 2020
HUGO BOSS resolutely tackles the challenges posed by the pandemic – healthy balance sheet structure and comprehensive measures ensure liquidity
Protecting employees and financial stability have top priority Temporary store closures lead to a decline in currency-adjusted sales of 17% in the first quarter Ongoing strong momentum in online business – sales increase 39% Operating result (EBIT) amounts to minus EUR 14 million
“The COVID-19 pandemic is an unprecedented exceptional situation for our company too. Protecting our employees, customers, and business partners is our top priority,” says Mark Langer, Chief Executive Officer of HUGO BOSS AG. “We have done our utmost to ensure the financial flexibility and stability of our company. I am absolutely convinced that together we will safely navigate HUGO BOSS through this unusual time.”
HUGO BOSS continues to fulfill its social responsibility also in this exceptional situation. The company is protecting the health and safety of its employees, customers, business partners, and other stakeholders through a number of initiatives:
Already at an early stage, HUGO BOSS set up a crisis team that closely monitors the development of the pandemic and comprehensively coordinates all of the Group’s actions to protect its employees. Almost all corporate employees have been enabled to work from home. Where this is not possible due to operational conditions, appropriate precautions have been taken. This applies in particular to employees in production, logistics, and retail. In accordance with official regulations, in mid-March HUGO BOSS temporarily closed nearly all of its own retail stores as well as points-of-sale at important partners in Europe and the Americas. The Asia/Pacific region and China in particular were also affected by extensive temporary closures during the first quarter. In order to protect customers and employees, currently more than 75% of the Group’s more than 1,000 own points-of-sale globally remain closed. At the end of March, HUGO BOSS temporarily dedicated the production facility at its headquarters in Metzingen, Germany, to the production of face masks. A total of around 200,000 re-usable masks are being produced at the site, before being donated to public institutions. The latter will also receive functional clothing that is produced in-house.
COVID-19 pandemic weighs on business development in the first quarter
In the wake of the COVID-19 pandemic and the related temporary closures of retail stores, the global apparel industry, including the upper premium segment, faced significant challenges in the first quarter of 2020. For HUGO BOSS, this inevitably resulted in a decline in sales, profitability, and cash flow in the first three months of the year. Sales of HUGO BOSS decreased 16% overall to EUR 555 million (Q1 2019: EUR 664 million). This corresponds to a currency-adjusted decline of 17%. After a very encouraging start to the new year, the global spread of the coronavirus led to a significant impact on the business. In the Asia/Pacific region, the effects began to be noticeable from late January, and currency-adjusted sales were down by a total of 31% in the first quarter. On the other hand, the decline in currency-adjusted sales in Europe and the Americas was less pronounced at 14% and 17%, respectively. In both regions, the increased spread of the virus only began around one month later.
While the vast majority of the own store network of HUGO BOSS was affected by temporary closures in the first quarter, the Group’s own online business continued to enjoy strong momentum. With encouraging currency-adjusted growth of 39%, the first three months of 2020 marked the tenth consecutive quarter of strong double-digit growth of the own online business. In total, retail sales decreased 17% in the first quarter, while wholesale revenues declined 18%, both currency-adjusted.
The double-digit sales decline significantly weighed on earnings. In the first quarter, the operating result (EBIT) amounted to minus EUR 14 million (Q1 2019: EUR 57 million).
Gradual recovery in mainland China
Unlike in Europe and the Americas, where business is still significantly impacted as a result of the pandemic and the continuing closures of points-of-sale, HUGO BOSS is currently seeing steady improvements in mainland China. Since the end of March all own retail stores and shop-in-shops have been reopened over there, and the sales achieved in April were only around 15% to 20% below the prior year level. HUGO BOSS expects that consumer behavior and store traffic will continue to improve gradually in this strategically important market for the company. In addition, the momentum of the Group’s global online business saw a further strong acceleration in April, as sales generated via the own online store hugoboss.com as well as important partner websites more than doubled versus the prior year period.
Comprehensive measures taken to secure free cash flow
Thanks to its healthy balance sheet structure, HUGO BOSS is well prepared for the financial challenges associated with this global crisis. In addition, at an early stage, the company initiated comprehensive measures with a total volume of around EUR 600 million to secure its free cash flow:
With a view to its operating expenses and its strict cost management, HUGO BOSS targets additional cost savings of at least EUR 150 million over the course of the year. In the context of the respective legal framework, measures were taken to reduce the working hours and personnel costs for the Group’s national and international subsidiaries. For a large number of the employees in Germany, for example, a reduction in working hours initially until May 31 was agreed with the works council. At the same time, HUGO BOSS will voluntarily supplement the short-time working compensation to at least 80% of the regular level. In doing so, the company aims at securing the jobs of its employees while at the same time increasing its financial flexibility. The Managing Board of HUGO BOSS AG will also participate in the measures out of solidarity, and is voluntarily waiving 40% of its basic remuneration for the months of April and May 2020. Significant cost savings are also targeted in selling and distribution expenses during the course of the year. In this regard, HUGO BOSS maintains a close and trusting relationship with its landlords in all the affected markets. In each case, mutual solutions to reduce rental expenses appropriate to the situation are being sought in a spirit of partnership. Besides this, all non-business-critical investments are being postponed for the time being. In particular, planned renovations and openings of retail stores will be suspended until further notice. Overall, the initial investment budget for 2020 of around EUR 150 million will be reduced by around one third from today’s perspective. In order to limit the increase in trade net working capital, HUGO BOSS is working together with its suppliers to reduce the inflow of inventories. At the same time, the company has adjusted its own production level to account for the currently lower demand. In total, HUGO BOSS aims at reducing the inventory inflow in fiscal year 2020 by at least EUR 200 million versus its initial plan. In addition, as already communicated, the Managing Board and Supervisory Board of HUGO BOSS AG will propose to the Annual Shareholders’ Meeting on May 27, 2020 that the dividend payment for fiscal year 2019 will be suspended, except for the legal minimum dividend of EUR 0.04 per share. By retaining the net profit, the company is strengthening its internal financing capability.
Protecting its financial flexibility and stability remains a top priority for HUGO BOSS. At the end of the first quarter, the Group had cash and cash equivalents of EUR 102 million. In addition, a revolving syndicated loan in the amount of EUR 450 million is available to the company. Of this, EUR 122 million was utilized at the end of the first quarter.
Reliable outlook for the full year not possible under current circumstances
The temporary closure of a large number of stores of HUGO BOSS will noticeably weigh on the Group’s sales and earnings development for the full year. However, as the further development of the pandemic in many important markets remains uncertain, a reliable forecast for sales and earnings development in 2020 is currently not possible.
At the same time, HUGO BOSS expects both sales and earnings declines in the second quarter of 2020 to be more pronounced than those recorded in the first quarter. This will mainly be a result of the continuing closures of the Group’s own stores as well as points-of sale at important partners in Europe and the Americas. Overall, these two regions combined usually contribute around 85% to Group sales. In total, HUGO BOSS hence expects currency-adjusted Group sales to decrease by at least 50% in the second quarter. Nevertheless, the company is confident that from the third quarter on, the retail environment will gradually improve. This should also positively impact the Group’s sales and earnings development in the second half of the year.
In order to ensure the safety of its shareholders and employees, HUGO BOSS will hold its Annual Shareholders’ Meeting entirely virtually for the first time on May 27, 2020. All information about the Annual Shareholders’ Meeting can be found at shareholdermeeting.hugoboss.com. The Investor Day, originally scheduled for June 18 and 19, 2020, has been postponed considering the current situation. The company will announce a new date in due time.Financial Publicationsnews-2897Mon, 06 Apr 2020 19:56:00 +0000HUGO BOSS takes social responsibility seriously – Virtual Annual Shareholders’ Meeting scheduled for May 27, 2020; Managing Board and Supervisory Board propose suspension of the dividendhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-nimmt-gesellschaftliche-verantwortung-wahr-virtuelle-hauptversammlung-fuer-den-27-mai-2020-geplant-vorstand-und-aufsichtsrat-schlagen-aussetzung-der-dividende-vorPress Release
HUGO BOSS takes social responsibility seriously – Virtual Annual Shareholders’ Meeting scheduled for May 27, 2020; Managing Board and Supervisory Board propose suspension of the dividend
Metzingen, April 6, 2020. Despite major challenges associated with the COVID-19 pandemic, HUGO BOSS is fully aware of its social responsibility in this exceptional situation. With the aim of protecting the health of its employees and curbing the spread of the pandemic, HUGO BOSS enabled almost all of its administrative employees to work from home at an early stage. In addition, the Company has temporarily closed nearly all of its own retail stores as well as points-of-sale at important partners in Europe and America in order to protect the public and to comply with regulatory requirements.
In order to make a vital contribution to the well-being of the general public in the current difficult situation, HUGO BOSS has temporarily dedicated its production site at its headquarters in Metzingen, Germany to the production of face masks. In the coming weeks, around 200,000 re-usable masks will be produced there and donated to public facilities. In addition, the Company is currently donating 20 percent of its online sales in the U.S. market to the American Red Cross, thus supporting important relief measures against the pandemic.
Thanks to its solid balance sheet structure, HUGO BOSS is well prepared for the financial challenges associated with the pandemic. In addition, the Company has already taken extensive measures to secure free cash flow at an early stage. In this context, the Managing Board and the works council of HUGO BOSS AG agreed to introduce short-time working for Germany-based employees starting in April 2020. The Managing Board of HUGO BOSS AG will also participate in the measures to secure cash flow and voluntarily waive 40% of its basic remuneration for the months of April and May 2020.
Nevertheless, the negative effects of the pandemic are currently leading to a significant decline in sales, profitability, and cash flow. At present, it is not possible to predict how long this situation will last. Therefore, the Managing Board and the Supervisory Board of HUGO BOSS AG have decided today to propose to the Annual Shareholders’ Meeting that the dividend payment for fiscal year 2019 will be suspended. The retention of net profit is intended to further strengthen the financial stability and flexibility of the Company.
In light of the ongoing pandemic and the contact bans ordered by the authorities, the Managing Board and the Supervisory Board of HUGO BOSS AG today also decided to take advantage of the new legal regulations and hold this year’s Annual Shareholders' Meeting purely virtually. The virtual Annual Shareholders’ Meeting is scheduled to take place on May 27, 2020 and will fulfill all the conditions required by the new law. The Company plans to publish a new invitation in the Bundesanzeiger [German Federal Gazette] and on the Company website by April 20, 2020.
HUGO BOSS will continue to monitor the development of the pandemic and its impact on the business very closely and will take further measures if necessary. The proposal for the appropriation of earnings is also continually being reviewed in the light of further developments and will be updated before the Annual Shareholders’ Meeting if appropriate. On May 5, 2020, HUGO BOSS will release its quarterly statement on the first three months of 2020. Conference calls, including webcasts, will also be held on that day for media representatives as well as financial analysts and investors.
If you have any questions, please contact:
Dr. Hjördis Kettenbach Head of Corporate Communications Phone: +49 7123 94-83377 E-mail: hjoerdis_kettenbach@hugoboss.com
Christian Stöhr Head of Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-2855Wed, 18 Mar 2020 20:51:44 +0000HUGO BOSS takes comprehensive measures in response to the COVID‑19 pandemichttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-beschliesst-umfangreiche-massnahmen-als-reaktion-auf-die-covid-19-pandemiePress Release
HUGO BOSS takes comprehensive measures in response to the COVID‑19 pandemic
Metzingen, March 18, 2020. As a result of the rapid global spread of COVID-19 and in order to protect the public, HUGO BOSS has temporarily closed a large part of its own retail stores as well as many points-of-sale at important partners in Europe and North America. In the context of the Company’s social responsibility, HUGO BOSS thereby makes an important contribution to protect its employees and customers, to interrupt chains of infection and to contain the spread of COVID-19. At the same time, the Company also fully complies with the regulations of the respective authorities.
The resulting negative effect on the Group’s sales and earnings development is impossible to quantify at this stage. Therefore, a reliable prediction of the business performance in 2020 is not possible at this point in time. As a result, the outlook for the fiscal year 2020 that HUGO BOSS gave in the course of the release of full year 2019 results on March 5, 2020 is no longer valid.
In order to secure its financial flexibility and stability as well as to maintain its healthy balance sheet structure, HUGO BOSS has initiated extensive measures all aimed at protecting the Group’s free cash flow. This particularly includes suspending store renovations and new openings until further notice as well as significantly limiting inventory inflow. Besides that, the Group continues to focus on strengthening its two brands, BOSS and HUGO. Their great potential shall allow the Group to return to profitable growth quickly, as soon as the situation has normalized.
If you have any questions, please contact:
Dr. Hjördis Kettenbach Head of Corporate Communications Phone: +49 7123 94-83377 E-mail: hjoerdis_kettenbach@hugoboss.com
Christian Stöhr Head of Investor Relations Phone: +49 7123 94-87563 E-mail: christian_stoehr@hugoboss.comFinancial Publicationsnews-2841Thu, 05 Mar 2020 07:30:00 +0000HUGO BOSS makes significant progress in executing its strategy – dividend increase reflects strong improvement in free cash flowhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-erzielt-deutliche-fortschritte-bei-der-umsetzung-seiner-strategie-dividendenerhoehung-dank-starker-free-cashflow-entwicklungPress release on the full year 2019 results
Metzingen, March 5, 2020
HUGO BOSS makes significant progress in executing its strategy – dividend increase reflects strong improvement in free cash flow
Full year 2019
Currency-adjusted Group sales up 2% to EUR 2.9 billion EBIT amounts to EUR 333 million* Dividend increases 5 cents to EUR 2.75 per share
Outlook 2020
Spread of the coronavirus to weigh on business of HUGO BOSS, particularly in China Currency-adjusted sales expected to develop in a range of 0% to +2%; EBIT forecasted between EUR 320 million and EUR 350 million
“2019 was an eventful year for HUGO BOSS. Importantly, we have made further progress in implementing our strategy”, says Mark Langer, Chief Executive Officer of HUGO BOSS AG. “We strengthened our personalized offerings, significantly expanded our online business and increased retail sales productivity in our stores. After a very good start to 2020, our business in Asia is currently being significantly impacted by the spread of the coronavirus. Nevertheless, we are firmly convinced of the great potential of our BOSS and HUGO brands in this key region.”
HUGO BOSS increased sales by 3% to EUR 2,884 million in fiscal year 2019, representing a currency-adjusted increase of 2%. In the Group’s own retail business, currency-adjusted sales grew 4%. As in the prior year, the online business recorded significant double-digit growth. Wholesale sales declined 3%, partly reflecting the persistently difficult market environment in the U.S.. At EUR 333 million, operating profit (EBIT) in fiscal year 2019 was 4% below the prior year level (excluding IFRS 16). This is attributable to a lower gross profit margin as well as an increase in operating expenses. The latter was primarily a result of additional investments in the Group’s own retail business.
Consistent execution of strategic initiatives pays off
In 2019, HUGO BOSS made significant progress in implementing its strategic initiatives. All of the strategic growth drivers – online, retail sales productivity, HUGO and Asia – made above-average contributions to sales growth in the past year:
Currency-adjusted sales in the own online business increased 35% to EUR 151 million, mainly driven by the expansion of online partnerships. It also reflects the growing importance of the own online store, hugoboss.com. Investments in the store network are also paying off. Today the Company is already showcasing its BOSS collections in a completely new environment in around 100 of its retail stores globally. This significantly contributed to an increase of retail sales productivity in brick-and-mortar retail by a total of 4% in 2019. With an increase of 5%, currency-adjusted sales of HUGO also grew at an above-average rate in 2019. This was driven by strong double-digit sales growth in HUGO’s casualwear collections. From a regional perspective, Asia/Pacific stood out as particularly positive in the last year, contributing with currency-adjusted sales growth of 5%. The successes in this strategically important region are nowhere more evident than in mainland China, which again posted a significant double-digit sales increase in 2019.
Economic consequences of the coronavirus to weigh on sales and profit growth
With the spread of the coronavirus and the associated restrictions on public life, the retail environment in the Asia/Pacific region, particularly in mainland China, has been severely impacted since the end of January. Regardless of the undiminished huge mid- and long-term potential that HUGO BOSS sees in this region, in the short term, the Company expects significant sales losses over there. After a very encouraging start to the new year, more than half of the Group’s around 150 points of sale in mainland China, Hong Kong and Macau have been closed since the end of January. The remaining points of sale mostly operate with severely limited opening hours and have experienced a significant decline in visitors. In addition, the Company is currently recording a noticeable decline in sales in other key markets.
Despite the prevailing high levels of uncertainty, as of today, HUGO BOSS expects a gradual normalization by the middle of the year. At the same time, HUGO BOSS expects the economic consequences of the spread of the coronavirus to have a significant impact on the Group’s sales and profit development in 2020, especially in the first quarter. This is taken into account in the estimates presented in the following paragraph regarding the expected business performance in 2020.
HUGO BOSS anticipates that Group sales will develop within a range of 0% to +2% in 2020, adjusted for currency effects. While the Group expects currency-adjusted sales to increase at a low single-digit percentage rate in Europe, the Americas are expected to see a largely stable development of currency-adjusted sales. Currency-adjusted sales in the Asia/Pacific region are forecasted to decline by a single-digit percentage rate. For its own retail business, the Group expects currency-adjusted sales in 2020 to grow at a low to mid-single-digit percentage rate. Currency-adjusted sales in the wholesale business are expected to decrease by a low to mid-single-digit percentage rate. This will primarily be due to the anticipated sales shift in connection with the intensification of the online concession model. Furthermore, HUGO BOSS expects EBIT of between EUR 320 million and EUR 350 million in 2020, with final sales development being crucial to the amount of EBIT that can be expected. The outlook on further performance indicators for 2020 can be found on page 10 et seq. of this release.
Higher dividend proposed for 2019
In view of the Group’s healthy balance sheet structure and the expected ongoing strong free cash flow generation, the Managing Board and Supervisory Board of HUGO BOSS AG intend to propose to the Annual Shareholders’ Meeting on May 7, 2020 a dividend of EUR 2.75 per share for fiscal year 2019 – an increase of five cents as compared to the prior year (2018: EUR 2.70). This is equivalent to a payout ratio of 93% of the consolidated net income attributable to the equity holders of the parent company in 2019 (2018: 79%). Based on the number of shares outstanding at year-end, the amount distributed will come to EUR 190 million (2018: EUR 186 million).
Further information can be found at group.hugoboss.com. The online version of the HUGO BOSS annual report can also be found there, with many interactive features and a video statement by Chief Executive Officer Mark Langer.
*Without taking into account the effects of IFRS 16. The effects of IFRS 16 on the Group’s earnings development in 2019 are shown on page 5 et seq. of this press release.Financial Publicationsnews-2792Tue, 21 Jan 2020 06:21:14 +0000HUGO BOSS records strong sales and earnings growth in Q4 – full year targets for 2019 achieved https://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-mit-deutlichem-umsatz-und-ergebnisanstieg-in-q4-jahresziele-fuer-das-geschaeftsjahr-2019-erreichtPreliminary Results 2019
Metzingen, January 21, 2020
HUGO BOSS records strong sales and earnings growth in Q4 – full year targets for 2019 achieved
Q4 2019
Currency-adjusted Group sales up 4% in the final quarter Sales growth in own retail accelerates to 7% currency-adjusted EBIT increases by 9% to EUR 122 million* on a preliminary basis
Full year 2019
Currency-adjusted sales growth of 2% EBIT of EUR 333 million* achieved on a preliminary basis Free cash flow increases to EUR 209 million* on a preliminary basis
“We look back on an encouraging fourth quarter. Thanks to a strong increase in sales and earnings, we have achieved our adjusted targets for fiscal year 2019,” says Mark Langer, Chief Executive Officer of HUGO BOSS AG. “I am particularly pleased with the progress made along our strategic growth drivers Online and China. We will continue to persistently work on sustainably increasing the desirability of our brands BOSS and HUGO, and ensuring profitable growth for our company.”
HUGO BOSS achieved strong sales growth in the fourth quarter. Currency-adjusted Group sales increased 4% on a preliminary basis. In the reporting currency, this represents an increase of 5% to EUR 825 million (Q4 2018: EUR 783 million). In particular, sales momentum in Europe accelerated in the final quarter. Thanks to double-digit growth in Great Britain and France, currency-adjusted sales in the region grew 8%. In Germany, an increase in sales in the own retail business did not fully compensate for a persistently difficult wholesale business. In the Asia/Pacific region, currency-adjusted sales rose 4% in the fourth quarter. This is mainly attributable to the ongoing strong sales momentum in Mainland China, where the Group once again achieved significant double-digit growth. In line with expectations, the environment in Hong Kong, in contrast, remained difficult in the final quarter. As expected, the persistently challenging market environment continued to weigh on sales performance in the U.S. and Canada in the fourth quarter. Overall, currency-adjusted sales in the Americas decreased 7% in the final quarter.
In total, currency-adjusted sales in the own retail business increased 7% in the fourth quarter. On a comp store and currency-adjusted basis, this represents an acceleration in growth to 3%. At the same time, positive effects from the intensification of online partnerships in the concession model over the course of the year and the completed renovations of strategically important BOSS stores carried out in the prior quarters made a disproportionately high contribution to growth in the own retail business. Supported by the strategic expansion of the online concession model, own online sales growth accelerated to 52% in the fourth quarter, adjusted for currency effects. Currency-adjusted sales in the wholesale business decreased 4%. In line with expectations, the market environment in Germany and the U.S. remained particularly challenging. In addition, the intensification of online partnerships in the concession model weighed on the wholesale business.
HUGO BOSS thus achieved its full year 2019 sales and earnings targets as adjusted in October. On a preliminary, non-audited basis, HUGO BOSS records sales of EUR 2,884 million, representing an increase of 3% in the reporting currency as compared to the prior year. This corresponds to a currency-adjusted increase of 2%. Subject to the completion of year-end closing procedures, the Group anticipates that operating profit (EBIT) will amount to EUR 333 million in 2019, excluding the effects of IFRS 16. This corresponds to a decrease of 4% compared to the prior year (2018: EUR 347 million). An increase in EBIT of 9% to EUR 122 million on a preliminary basis in the final quarter largely compensated for the profit decline in the first nine months (2018: EUR 111 million). Taking into account IFRS 16, EBIT on a preliminary basis in 2019 amounted to EUR 344 million and was thus 1% lower than in the prior year. For the fourth quarter, this corresponds to an increase in EBIT of 12% to EUR 124 million on a preliminary basis.
In addition, HUGO BOSS was able to increase free cash flow on a preliminary basis to EUR 209 million* (2018: EUR 170 million), mainly reflecting improvements in trade net working capital (TNWC).
The Group will publish its final results for 2019 and provide its financial outlook for the new fiscal year on March 5, 2020. Conference calls, including webcasts, will also be held on that day for media representatives as well as financial analysts and investors. Prior to that, the Supervisory Board will resolve upon the dividend proposal for fiscal year 2019.
If you have any questions, please contact:
Dr. Hjördis Kettenbach Head of Corporate Communications Phone: +49 7123 94-83377 Email: hjoerdis_kettenbach@hugoboss.com
Christian Stöhr Head of Investor Relations Phone: +49 7123 94-87563 Email: christian_stoehr@hugoboss.com
*Without taking into account the effects of IFRS 16.Financial Publicationsnews-2715Tue, 05 Nov 2019 07:30:00 +0000HUGO BOSS expects sales and earnings growth in the fourth quarter – ongoing focus on strategic initiativeshttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-erwartet-umsatz-und-ergebniswachstum-im-vierten-quartal-strategische-initiativen-weiter-im-fokusQuarterly Statement for Q3 2019
Metzingen, November 5, 2019
HUGO BOSS expects sales and earnings growth in the fourth quarter – ongoing focus on strategic initiatives
Currency-adjusted Group sales remain stable in the third quarter Sales growth in online business accelerates to 36% in Q3 Challenging market environment in North America and Hong Kong weighs on earnings development in the third quarter Significant increase in earnings expected in the fourth quarter
"The challenging market environment demonstrates the importance of focusing on the execution of our strategic priorities," says Mark Langer, Chief Executive Officer of HUGO BOSS AG. "Especially in our own online business and in the important growth market China, we are already seeing the successes today. We are also working to significantly improve our profitability in structural terms. In the important final quarter, we intend to significantly increase our operating profit again."
As already announced in October, the persistent macroeconomic uncertainties weighed on the sales development of HUGO BOSS in the third quarter. Consequently, currency-adjusted Group sales remained at the prior year level. This represents an increase of 1% to EUR 720 million in the reporting currency. In particular, in North America, the market environment further deteriorated. Besides lower local demand, also sales generated with tourists decreased in this market. Overall, currency-adjusted sales in the Americas were 8% below the prior year level. In Asia/Pacific, currency-adjusted sales rose 2%. While in Mainland China, HUGO BOSS once again recorded double-digit growth on a comp store and currency-adjusted basis, business in Hong Kong is substantially negatively affected since the beginning of the political unrest and demonstrations. In Europe, currency-adjusted sales also rose 2%, with significant differences in the individual markets. While sales in Great Britain continued to develop positively, sales in Germany were below the prior year level.
In the third quarter, the own retail business recorded currency-adjusted sales growth of 3%. Currency-adjusted comp store sales increased 2%. While growth in the own online business accelerated to 36%, wholesale sales were below the prior year level.
Operating profit (EBIT) decreased 13% to EUR 80 million in the third quarter (excluding the effects of IFRS 16), and thus fell short of expectations. Besides lower than anticipated sales growth, higher operating expenses also contributed to this.
In total, HUGO BOSS achieved currency-adjusted sales growth of 1% in the first nine months of 2019. This corresponds to an increase of 2% to EUR 2,059 million in the reporting currency. At EUR 211 million, EBIT was 10% below the prior year level (excluding the effects of IFRS 16).
Full year 2019 outlook adjusted in October – sales and earnings growth expected in Q4
Against the background of the persistently difficult market environment, HUGO BOSS has already adjusted its financial outlook for the current year in October. Management assumes that currency-adjusted Group sales for full year 2019 will increase at a low single-digit percentage rate. In addition, the Group expects to generate an EBIT of between EUR 330 million and EUR 340 million for the full year (excluding the effects of IFRS 16; prior year: EUR 347 million).
In addition to sales growth, HUGO BOSS consequently also expects a significant increase in operating profit for the fourth quarter. In particular, the own retail business should contribute to this. In this regard, for the final quarter, management expects above all positive effects from the intensification of online partnerships in the concession model and from the ongoing modernization of the store network.
Focus on the successful implementation of strategic initiatives
Despite the heightened macroeconomic uncertainties that the Group is currently facing, HUGO BOSS continues to make significant progress in executing against its strategic initiatives. One focus is on the continuous optimization of the global retail store network. Since the beginning of October, also the world's largest BOSS flagship store on the Champs-Élysées in Paris has been presenting the latest store concept. At around 1,200 m², customers can now experience the complete BOSS Menswear and Womenswear collections in a new ambience. The seamless integration of modern architectural elements and various digital services significantly enhances the shopping experience. The wide product range is rounded off with the personalized offers "BOSS Made to Measure" and "BOSS Made for Me".
In addition, HUGO BOSS opened its new outlet at the Group’s headquarters in Metzingen, Germany, in September. Menswear, womenswear as well as shoes and accessories from the BOSS and HUGO brands are offered in the company's largest outlet globally. The well thought-out building structure is characterized by clearly organized brand spaces and guarantees the quick and efficient supply of goods.
In the last few weeks, BOSS also received international attention with two fashion shows in Milan and Shanghai. At the end of September, BOSS Menswear and BOSS Womenswear presented their Spring/Summer 2020 collection in a combined show in the fashion metropolis of Milan. In October, BOSS was again represented at a fashion show in Shanghai for the first time since 2013, thus underlining the importance of China as a strategic growth market for the company. Overall, the response to both fashion shows and the accompanying social media campaigns was extremely positive – thanks also to the close involvement of international bloggers and influencers.Financial Publicationsnews-2703Thu, 10 Oct 2019 18:30:00 +0000HUGO BOSS announces preliminary third quarter results and adjusts its full year 2019 outlookhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-gibt-vorlaeufige-ergebnisse-fuer-das-dritte-quartal-2019-bekannt-und-passt-seine-prognose-fuer-das-gesamtjahr-2019-an-1-2Press Release
Metzingen, October 10, 2019. The management of HUGO BOSS AG updates its outlook for full year 2019. In doing so, HUGO BOSS takes account of the persistent macroeconomic uncertainties that increasingly weigh on consumer demand. In particular, in North America, the market environment further deteriorated during the third quarter, hence weighing on the Group’s sales and earnings development. Besides lower local demand, also sales generated with tourists decreased over there. In addition, business in Hong Kong has been substantially negatively affected since the beginning of the political unrest and demonstrations.
On a preliminary basis, currency-adjusted Group sales in the third quarter remained on the prior-year level. This represents an increase of 1% in the reporting currency to EUR 720 million. Group-wide retail sales increased 3% in total and 2% on a comp store basis, both adjusted for currency effects. Operating profit (EBIT) in the third quarter amounted to EUR 80 million on a preliminary basis (excluding the effects of IFRS 16; prior year: EUR 92 million), and thus below expectations. Besides lower than anticipated sales growth, higher expenses relating to management changes also contributed to this.
Against this background, HUGO BOSS adjusts its financial outlook for the current year. Management now expects currency-adjusted Group sales for the full year 2019 to increase at a low single-digit percentage rate (previously: expectation of an increase at the lower end of a mid-single-digit percentage range). At the same time, HUGO BOSS now expects to generate an operating profit (EBIT) of between EUR 330 million and EUR 340 million for the full year (excluding the effects of IFRS 16; prior year: EUR 347 million). Management’s previous outlook provided for an increase in EBIT at the lower end of a high single-digit percentage range.
”Despite heightened macroeconomic uncertainties that we are currently facing, we remain focused on successfully executing against our strategic initiatives,“ says Mark Langer, Chief Executive Officer of HUGO BOSS AG. “Structurally improving our profitability plays a decisive role in that regard. We adhere to our mid-term target of an EBIT margin of 15%.“
HUGO BOSS will release its full set of third quarter results on November 5, 2019, together with a detailed outlook for the fiscal year 2019. For financial analysts and investors, the Managing Board will host a conference call including a webcast also on that day.
If you have any questions, please contact:
Dr. Hjördis Kettenbach
Head of Corporate Communications
Phone: +49 7123 94-83377
Email: hjoerdis_kettenbach@hugoboss.com
Christian Stöhr
Head of Investor Relations
Phone: +49 7123 94-87563
Email: christian_stoehr@hugoboss.comCorporateFinancialFinancial Publicationsnews-2581Thu, 01 Aug 2019 07:30:00 +0000HUGO BOSS increases sales and operating profit in the second quarterhttps://group.hugoboss.com/en/investors/publications/financial-releases/publication/hugo-boss-increases-sales-and-operating-profit-in-the-second-quarterQuarterly Statement for Q2 2019
Metzingen, August 1, 2019
HUGO BOSS increases sales and operating profit in the second quarter
Currency-adjusted Group sales grow 2% in the second quarter Momentum in China accelerates: double-digit comp store sales increases Online business continues to grow at a double-digit rate Significant increase in efficiency: operating profit (EBIT) up 3%* in Q2 Management expects full-year sales and earnings at the lower end of the existing outlook
“In an ongoing challenging market environment, we have increased both our sales and operating profit in the second quarter,” says Mark Langer, Chief Executive Officer of HUGO BOSS AG. “For the second half of the year, we are now expecting a significant acceleration in sales and operating profit development. This will make a decisive contribution to the achievement of our full-year targets. Key drivers will be our partnerships in the online business and the ongoing optimization of our store network.”
In the second quarter, HUGO BOSS increased currency-adjusted sales by 2% to EUR 675 million. This represents an increase of 3% in the reporting currency. Sales performance in Asia/Pacific was once again particularly strong. Currency-adjusted sales growth accelerated there to 8%. In China, HUGO BOSS achieved double-digit comp store sales growth. In Europe, sales increases in Great Britain and France offset a decline in Germany. Overall, currency-adjusted sales in Europe were up 2%. Due to the persistently difficult market environment in the U.S., sales in the Americas were down 3% on the prior year. In particular, an easing of the positive effects of the tax reform, a weaker business with tourists and a highly promotional market environment in general weighed on sales performance.
Group-wide retail sales in the second quarter increased 3% in total and 2% on a comp store basis, both adjusted for currency effects. The online business increased by 16% adjusted for currency effects, representing the seventh consecutive quarter of double-digit growth. Due to a highly disciplined markdown management, growth was, as expected, lower than in the prior quarters. The wholesale business developed stable, with sales in Europe and Asia/Pacific above the prior year level.
Operating profit (EBIT) increased by 3% in the second quarter to EUR 76 million.* In addition to higher sales, the increase in operating profit was also supported by consistent cost management. This allowed HUGO BOSS to compensate for a decline in the gross profit margin in the second quarter.
In total, HUGO BOSS recorded currency-adjusted sales growth of 1% in the first half of 2019. In the reporting currency, this is equivalent to a 3% sales increase to EUR 1,339 million. At EUR 130 million, EBIT was 9% below the prior year level.* The increase in operating profit in the second quarter partially offset the decline in the first quarter, which was mainly related to one-off effects.
Lower end of existing sales and earnings outlook expected
On the basis of the half-year results, HUGO BOSS confirms its outlook for the full year 2019. At the same time, management now expects sales and earnings to reach the lower end of the existing outlook. In doing so, HUGO BOSS takes into account the persisting challenges in the US market in particular. The Company expects that currency-adjusted sales growth will reach the lower end of the existing outlook (increase at a mid-single-digit percentage rate). The acceleration in sales in the second half of the year will be driven by the own retail business, which is forecast to achieve currency-adjusted sales growth in the mid to high single-digit percentage range in full year 2019. In addition to an acceleration in comp store sales growth, the Company expects further growth stimuli for the second half of the year from intensified online partnerships under the concession model and from the ongoing optimization of its store network.
For the second half of the year, the Company also anticipates a significant acceleration in operating profit development. HUGO BOSS expects to achieve EBIT growth at the lower end of the existing outlook (increase at a high single-digit percentage rate) for the full year (excluding the expected effects of IFRS 16). In addition to a significant increase in gross profit expected for the second half of the year, the anticipated further improvement in cost efficiency should also contribute positively to operating profit development.
Execution of strategic priorities in full swing
In the second quarter, the Company has continued to make good progress in executing its strategic priorities. With the introduction of “BOSS Made for Me,” the Company has further expanded its personalized product offering. Customers can use this service to freely combine outer materials, lining and buttons on their new BOSS suit, thereby tailoring it individually to their preferences. The face of the accompany­ing campaign is the professional soccer player Mats Hummels. “BOSS Made for Me” is already offered in selected BOSS stores in Europe, including London, Paris and Munich. This service will be successively expanded in the coming months.
The renovation of strategically important BOSS stores is also progressing according to plan. In the second quarter, eight stores were reopened under the new store concept, including stores in Stockholm, Tokyo and Macau. Customers now have the opportunity to experience the BOSS collections in this new environment in more than 40 major cities. For the HUGO brand, three additional stores with a unique furniture concept opened in the same period in Tokyo, Singapore and Moscow. Today there are 26 HUGO stores globally presenting the brand to customers.
Liam Payne and Mark Chao established as brand ambassadors
At the Berlin Fashion Week in early July, HUGO presented a jointly developed capsule collection together with the British singer and artist Liam Payne. The new styles were showcased digitally at an event in Berlin with a live appearance from Liam Payne, after which they were immediately made available online – exclusively on Instagram initially, then via hugo.com and in selected HUGO stores. As the global brand ambassador for HUGO, Liam Payne will continue to support important marketing campaigns and exclusive collections in the coming months. This is the first partner­ship of its kind for HUGO. Liam Payne is expected to raise the brand’s profile globally and play a key role in further increasing HUGO’s relevance in the dynamic contemporary fashion segment.
In addition, the partnership recently entered into with the Taiwanese-Canadian actor Mark Chao is intended to further increase desirability of the BOSS brand in Asia. In an initial step, a jointly developed capsule collection was launched on the Chinese market in April under the title “Luxury Travel.” The response to the styles available in selected BOSS stores, via boss.com and a WeChat Mini Program was extremely positive. In his role as regional brand ambassador, Mark Chao will continue as the face of important marketing campaigns.
*Without taking into account the effects of IFRS 16. A detailed description of the effects of IFRS 16 on the Group’s earnings in the second quarter can be found on page 8 of the quarterly statement.
If you have any questions, please contact:
Dr. Hjördis Kettenbach
Head of Corporate Communications
Phone: +49 7123 94-83377
Email: hjoerdis_kettenbach@hugoboss.com
Christian Stöhr
Head of Investor Relations
Phone: +49 7123 94-87563
Email: christian_stoehr@hugoboss.comFinancial Publications
