Outlook and Targets

"CLAIM 5" Strategy
With its "CLAIM 5" growth strategy HUGO BOSS 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.

Outlook 2023

  Results 2022 Outlook 2023
Group sales

Increase by 31% to EUR 3,651 million

Increase within a range of 12% to 15%
to a level of between EUR 4.1 billion and EUR 4.2 billion

Operating result (EBIT)

Increase by 47% to EUR 335 million

Increase within a range of 20% to 25%
to a level of between EUR 400 million and EUR 420 million

Trade net working capital as a percentage of sales

Decrease by 220 bp to 15.0%

Increase to a level of around 20%

Capital expenditure

Increase by 84% to EUR 191 million

Increase to a level of between EUR 250 million and EUR 300 million

2025 Financial Ambition

With its 'Claim 5' Strategy, HUGO BOSS aims to 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, representing a strong CAGR of at least 21% compared to fiscal year 2022. Consequently, HUGO BOSS targets an EBIT margin of at least 12% by 2025. The Company’s gross margin is anticipated to range between 62% and 64% until 2025, reflecting the ongoing strong surge in brand momentum as well as additional efficiency gains to be realized in operations.

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. 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.

PRESS RELEASE

Further information

Reports & Downloads

All publications by HUGO BOSS AG can be found here, including financial reports and financial releases.

Strategy

With its growth strategy ‘CLAIM 5’, HUGO BOSS is fully committed to strongly accelerate top-line growth by 2025, claim its position in the consumers’ minds, and keep winning market share for its strong brands BOSS and HUGO.

Investor Day

In June 2023, HUGO BOSS presented an update on its growth strategy "CLAIM 5" at an investor day. Related documents can be found on the following page.