The group also anticipates a significant increase in operating profit (EBIT) for the whole of FY23, expecting a 22 percent increase to €410 million, up from €335 million in FY22, Hugo Boss said in a press release.
Hugo Boss posted record sales of €4.197 billion for FY23, an increase of 15 percent in reporting currency, with an increase of 18 percent on an adjusted monetary basis. Operating profit is expected to grow by 22 percent to €410 million. The fourth quarter saw a 10 percent year-on-year increase in sales to €1,177 million, with significant growth across all regions and sectors.
In the fourth quarter of FY23 (Q4 FY23), Hugo Boss continued its strong performance with preliminary currency-adjusted revenue growing 13 percent compared to the same period last year. In reporting currency, fourth-quarter sales increased 10 percent year-over-year (YoY) to €1.177 billion, making it the most successful quarter in the company's history from a revenue perspective.
Boss menswear saw a 13 percent year-on-year increase in currency-adjusted sales, while Boss womenswear and Hugo each reported a 14 percent increase.
Geographically, all regions contributed to revenue growth in the fourth quarter of FY23. In Europe, the Middle East and Africa (EMEA), currency-adjusted revenue increased 7 percent compared to a strong level a year earlier , with significant sales increases in key markets such as Germany and France and double-digit improvements in emerging markets. In the Americas, the company maintained its impressive momentum, with an 18 percent increase in currency-adjusted sales, supported by continued strong growth in the US market. The Asia-Pacific region saw a notable 33 percent increase in currency-adjusted revenue, driven by strong sales in China and Southeast Asia-Pacific.
The group's digital business maintained its double-digit growth trajectory, with currency-adjusted revenue up 26 percent. This performance was reinforced by sales increases across all digital touchpoints. In traditional retail, the company also saw continued momentum, with a 12 percent increase in currency-adjusted revenue, driven by improvements in store productivity and additional selling space. The brick-and-mortar wholesale segment reported a 5 percent increase in currency-adjusted revenue, with contributions from all regions. The licensing business saw a 15 percent increase in sales, led by significant growth in the fragrance sector.
The fourth quarter is expected to deliver EBIT of €121 million, up 17 percent year-on-year from €104 million in FY22.
“We finished 2023 on a high note, making it a record year for Hugo Boss,” he said. Daniel Grieder, CEO of Hugo Boss. “The double-digit improvements in revenue and results in the important final quarter are even more notable considering the current challenging global market environment. With the strong momentum of our brand and the continued successful execution of our 'Claim 5' strategy, we have laid a solid foundation to continue our trajectory of gaining market share and further progress towards becoming a top 100 global brand.” .
Fiber2Fashion News Desk (DP)
