Outlook and Targets
Outlook 2023
| Results 2022 | Outlook 2023 | |
|---|---|---|
| Group sales | Increase by 31% to EUR 3,651 million | Increase within a range of 12% to 15% |
Operating result (EBIT) | Increase by 47% to EUR 335 million | Increase within a range of 20% to 25% |
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.
