- 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, capi-talizing 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 effective¬ness 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 success¬ful 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%).
If you have any questions, please contact:
Carolin Westermann
Senior Vice President Global Corporate Communications
Phone +49 7123 94 – 86321
E-Mail carolin_westermann(at)hugoboss.com
Christian Stöhr
Senior Vice President Investor Relations
Phone +49 7123 94 – 87563
E-Mail christian_stoehr(at)hugoboss.com
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