H1/Q2 2024 developments
- HUGO BOSS records further revenue improvements in first half year despite challenging market environment (H1: +3%; Q2: –1%), driving additional market shares for BOSS and HUGO
- BOSS signs strategic partnership with David Beckham in a multi-year design collaboration
- Successful start of denim-focused brand line HUGO BLUE supports the brand’s revenues
- Growth continues in brick-and-mortar wholesale (H1: +7%; Q2: +5%) and on hugoboss.com (H1: +3%; Q2: +3%); brick-and-mortar retail revenues in H1 on prior-year level (H1: 0%; Q2: –2%)
- New customer loyalty program HUGO BOSS XP supports increase in member base (+30% year over year to ~9.5 million)
- Robust gross margin improvements as HUGO BOSS realizes substantial efficiency gains in its global sourcing activities (H1: +30 bp; Q2: +50 bp)
- Overall market uncertainty and higher operating expenses weigh on EBIT development (H1: EUR 139 million; Q2: EUR 70 million)
- Strong improvement in free cash flow (H1: EUR 156 million; Q2: EUR 143 million), driven by further optimization of inventories
H2/FY 2024 initiatives
- Relative outperformance to continue in fiscal year 2024 with full-year sales expected to grow between +1% and +4% in Group currency
- Various brand, product, and sales initiatives to support growth trajectory of BOSS and HUGO
- Robust wholesale order intake for upcoming Winter 2024 and Spring 2025 seasons
- New BOSS campaign featuring global fashion icons David Beckham and Naomi Campbell to launch at the end of August
- Bottom-line performance set to accelerate in H2 2024 due to increased focus on driving cost efficiency; full-year EBIT forecast to come in between EUR 350 million and EUR 430 million
- Several cost measures implemented to support profitability going forward
Daniel Grieder, Chief Executive Officer of HUGO BOSS: “Over the past three years, our ‘CLAIM 5’ growth strategy has enabled HUGO BOSS to drive superior, high-quality top-line growth. By stepping up investments into our brands, products, and touchpoints, we boosted brand relevance for BOSS and HUGO, winning over consumers from all over the world. However, following this period of strong top-line momentum, the global market environment deteriorated substantially in the first half of 2024. The weakening consumer sentiment in most markets led to a rapid slowdown in growth across the entire industry, which we could not completely escape from. And while the macro environment is likely to remain difficult for the time being, we are steadfast in our commitment to continue driving above-trend growth, capturing further market share, and focusing even more on operational and organizational productivity.
Our confidence in the immense potential of our two brands, BOSS and HUGO, remains strong, as do the long-term growth opportunities for our business. We will keep driving consumer engagement while also fostering loyalty. Our 360-degree brand campaigns deeply connect our brands and products with consumers worldwide, while our various partnerships enhance our global appeal even further. And with our new membership program, HUGO BOSS XP, we will further elevate customer engagement and strengthen customer loyalty. With initiatives like these, we drive forward strategically relevant and consumer-facing areas of our business to ensure the long-term success of BOSS and HUGO.
At the same time, we adapt to the current market environment and accelerate our cost discipline from here on. This includes leveraging our global sourcing activities, which has already translated into solid gross margin improvements in the first half of 2024. We have also taken additional measures to enhance efficiency and effectiveness across our business, capitalizing on our robust organizational platform built in recent years. This includes removing spend in non-strategic areas of the business, with particular emphasis on sales, marketing, and administration. Together, these efforts will enable us to noticeably limit cost growth going forward and provide strong tailwind to our bottom-line performance, starting in the second half of this year already. In doing so, we will ensure that we emerge even stronger once the global market environment returns to normal. At HUGO BOSS, we remain committed to driving sustainable, profitable growth and creating significant value for our shareholders.”
If you have any questions, please contact:
Media Relations
Carolin Westermann
Senior Vice President Global Corporate Communications
Phone: +49 7123 94-86321
E-mail: carolin_westermann(at)hugoboss.com
Investor Relations
Christian Stöhr
Senior Vice President Investor Relations
Phone: +49 7123 94-87563
E-mail: christian_stoehr(at)hugoboss.com
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