Operating profit (EBIT) for the quarter grew 6 percent to €69 million, compared to €65 million in the same period last year. This improvement in profitability resulted in an EBIT margin expansion of 10 basis points, taking it to 6.8 per cent from 6.7 per cent in Q1FY23, the company said in a press release.
Hugo Boss reported Q1 FY24 sales of €1.014 billion (~$1.08 billion), representing a 6 percent year-over-year increase. Operating profit increased to 69 million euros, raising the EBIT margin to 6.8 percent. The Americas led with an 11 percent increase in sales, while digital revenue grew 10 percent. Overall, the company showed strong growth across all channels.
Hugo Boss managed to maintain strong profit growth, indicating a healthy outlook for the brand. Additionally, the company reported a 2 percent decrease in inventories in currency-adjusted terms, reflecting efficient inventory management.
Sales performance was particularly strong in the Americas, where currency-adjusted revenue increased 11 percent, including a significant increase in the US market. In Europe, the Middle East and Africa (EMEA), sales grew by 5 percent with notable contributions from Germany and emerging markets. The Asia-Pacific region saw more modest growth of 4 percent, and Southeast Asia-Pacific achieved double-digit growth, although sales in China lagged behind the previous year.
Hugo Boss' digital business continued its upward trajectory, with a 10 percent increase in currency-adjusted sales, driven by gains at hugoboss.com and through digital sales with partners. The brick-and-mortar retail business also saw 3 percent growth in currency-adjusted sales, driven by improvements in store productivity and slight space expansion. The wholesale segment reported 8 percent growth in currency-adjusted sales.
“I am pleased to have achieved further improvements in sales and profits also in the first quarter of 2024,” he said Daniel Grieder, CEO of Hugo Boss. “In a volatile market environment, we remain focused on rigorously executing our 'CLAIM 5' strategy, capitalizing on our numerous growth opportunities. Leveraging our strong trading platform, we remain equally committed to achieving greater efficiencies. All this will allow us to continue our profitable growth trajectory also in 2024.”
Fiber2Fashion News Desk (DP)
