Cost of sales increased slightly to €410 million, up 1 percent year-on-year from €404 million in the third quarter of 2023. Gross profit as a percentage of sales was 60.2 percent, up 50 basis points. (pb) less than 60.7 percent in the third quarter of 2023, Hugo Boss stated in a press release.
Hugo Boss recorded sales of 1,029 million euros in the third quarter of 2024, an increase of 1 percent year-on-year. Gross profit fell 1 percent to 619 million euros, and net profit fell 12 percent to 56 million euros. Digital sales increased 6 percent, while sales in Asia/Pacific decreased 8 percent. The company's sales in the first nine months of 2024 reached 3,058 million euros, with a stable gross margin and expected growth for the end of the year of 1-4 percent.
The company's total net income decreased 12 percent to €56 million, down from €63 million in the third quarter of 2023, and net income attributable to shareholders of the parent company fell 13 percent to 55 million euros from 63 million euros in the third quarter. 2023.
Total operating expenses increased 1 percent to €524 million in the third quarter of 2024, up from €520 million in the third quarter of 2023, and operating expenses as a percentage of sales increased to 50.9 percent. percent, an increase of 30 bps from 50.6 percent in the third quarter. 2023.
Operating income (EBIT) decreased by 7 percent to 95 million euros, compared to 103 million euros in the third quarter of 2023. EBIT as a percentage of sales fell to 9.3 percent, a decrease of 80 points from 10.0 percent in the third quarter of 2023. Earnings per share in the third quarter of 2024 were 0.79 euros, a decrease of 13 percent. percent from 0.91 euros in the third quarter of 2023.
By brand, Boss menswear sales were stable at €785 million and Boss womenswear sales grew 1 percent year-on-year to €74 million. Meanwhile, Hugo sales rose 1 percent year-on-year to 171 million euros.
Regionally, sales in Europe, the Middle East and Africa (EMEA) increased by 1 percent year-on-year to €662 million. Sales in the Americas remained stable at €228 million and in Asia-Pacific, sales fell 8 percent to €110 million.
By distribution channel, traditional retail sales decreased by 4 percent to 499 million euros. Traditional wholesale trade grew by 3 percent year-on-year to €302 million. Meanwhile, digital sales increased by 6 percent year-on-year to 199 million euros.
Daniel Grieder, CEO of Hugo Boss, said: “In the third quarter, Hugo Boss achieved strong revenue improvements despite current weak consumer confidence. “This is a clear testament to the power of Boss and Hugo, which we have built over the past few years through the consistent execution of our ‘Claim 5’ strategy.”
Nine-month financial report
Hugo Boss sales in the first nine months (9 months) of 2024 were 3,058 million euros, a slight margin of 1 percent year-on-year, with currency-adjusted growth of 2 percent. The company's cost of sales was 1,178 million euros, 1 percent less than in the 9-month period of 2024. The company's gross profit reached 1,880 million euros, 1 percent more than in the 9-month period of the previous year. EPS decreased by 25 percent to 1.88 euros in this period.
The gross margin in this period remained stable at 61.5 percent of sales. Operating profit (EBIT) in the 9-month period decreased by 19 percent to €235 million, resulting in an EBIT margin of 7.7 percent (down 190 basis points from 9.6 percent).
By brand, Boss men's clothing grew 1 percent year-on-year to €2,355 million and Boss women's clothing increased 3 percent year-on-year to €213 million. Hugo's sales increased by 4 percent to 490 million euros.
By region, EMEA sales increased 1 percent year-on-year to €1,899 million. Sales in America grew by 6 percent to 697 million euros. In the Asia-Pacific region, sales decreased by 5 percent to €383 million (a decrease of 2 percent adjusted for exchange rates).
By distribution channel, physical retail sales decreased by 2 percent year-on-year to €1,554 million in the nine months of 2024. Physical wholesale sales increased by 5 percent year-on-year to €842 million and digital sales grew by 4 percent. cent year-on-year. up to 583 million euros.
financial outlook for 2024
The company continues to expect sales in 2024 to increase by between +1 percent and +4 percent in the group currency to a level of around €4.2 billion to €4.35 billion (2023: €4.2 billion) , and the coins are expected to have a slight variation. negative impact on income. The company continues to expect EBIT for the full year 2024 to develop within a range of 15 percent to +5 percent, amounting to around €350 million to €430 million (2023: €410 million).
Fiber2Fashion News Desk (SG)
