Following the announcement of preliminary results in January, on the morning of March 7, Central European Time, German fashion luxury goods group Hugo Boss announced complete financial data for the 2023 fiscal year ending on December 31: Sales increased by 15% year-on-year (Fx adj.: +18%) to a record €4.197 billion. This is the first time in the history of Hugo Boss that it has exceeded the 4 billion euro threshold, exceeding the previously set medium-term sales target two years ahead of schedule. Double-digit growth was achieved across all brands, regions and distribution channels.
“2023 is another exceptional year of success for Hugo Boss,” said Group CEO Daniel Grieder. “In the second year of executing our ‘CLAIM 5’ growth strategy, we achieved strong results in all business areas. achievements and accelerated the momentum of our two brands BOSS and HUGO. These facts successfully prove that with ‘CLAIM 5’ we are using the right strategy to unlock the full potential of our brands.”
However, Hugo Boss warned that due to weak consumer demand, the company may not be able to achieve its sales target of 5 billion euros in 2025. As of the close of trading on March 7, the group’s share price fell 13.8% from the previous trading day, and its current market value is approximately 3.75 billion euros.
Last year, the Boss brand opened a total of 33 new stores in all regions of the world, with “particular focus on expanding its distribution footprint in China.”
Meanwhile, a total of four Hugo brand stores have opened in the EMEA (Europe, Middle East and Africa) region and the Americas.
On the other hand, the group closed 18 stores with expired leases in Europe, the Middle East and Asia-Pacific, aiming to further optimize its distribution network.
In order to ensure business continuity and long-term success, the Supervisory Board of Hugo Boss confirmed on March 6 the permanent appointments to the Management Board, effective from April 1, 2024:
Daniel Grieder has been reappointed as Chairman of the Management Board and CEO until December 31, 2028;
Oliver Timm has been appointed deputy chief executive in addition to his role as group chief strategy officer (CSO). He was reappointed as CSO in March 2023 and will serve until December 31, 2026;
Yves Müller has been re-appointed as Group Chief Financial Officer and Chief Operating Officer until December 31, 2027.
With the permanent and staggered appointments of all members of the Management Board, the Supervisory Board is charting an important course for the future of Hugo Boss, aiming to ensure the continued successful execution of the “CLAIM 5” strategy.
As of December 31, 2023, Hugo Boss’s key financial data for fiscal year 2023 are as follows:
EMEA: Major markets such as Germany and France achieved double-digit growth, and emerging markets performed strongly.
Americas: Momentum remained strong throughout 2023, with double-digit growth in all major markets, including the important US market.
Asia Pacific: China and Southeast Asia and the Pacific achieved double-digit sales growth. On a currency-adjusted basis, revenue from the licensing business increased by 13%, with the important fragrance business achieving double-digit growth.
Although full-year sales reached a record high of 4.2 billion euros, sales growth is expected to slow next year (2025). Daniel Grieder said 2023 was a “record year” but growth in 2024 would be more modest at 3% to 6%. He added that the company’s original target of achieving sales of 5 billion euros in 2025 may be “slightly delayed”.
Daniel Grieder said: “While consumer confidence is getting a little tough in some places, we are actually on the path forward and we believe we are on the right track given the macroeconomic environment and geopolitical issues. on the road.” He said Hugo Boss is positioned as “affordable luxury” and can be priced flexibly without impacting profits.
“We’re an affordable luxury, or premium brand. I think the price and value of our product is very right. That’s the sweet spot where we think we’re well-positioned.”
