Fiscal 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:
Carolin Westermann 
Senior Vice President Global Corporate Communications
Phone: +49 7123 94 – 86321
Email: carolin_westermann(at)hugoboss.com

Christian Stöhr
Senior Vice President Investor Relations 
Phone: +49 7123 94 – 87563
Email: christian_stoehr(at)hugoboss.com