Despite the weak consumer mood, the German clothing retailer Hugo Boss achieved a sales record last year. The past fourth quarter was the highest in terms of sales in the company’s history. Hugo Boss made up a lot of ground, especially in China, at the end of the year.
The MDax company has therefore reached the upper end of the forecast range for 2023, which had already been raised twice. However, the operating result was weaker than generally expected and was not well received by investors on the stock market.
Sales grow by 15 percent
For the year as a whole, sales climbed by 15 percent to a record value of 4.2 billion euros, as Hugo Boss announced on Tuesday based on preliminary figures in Metzingen. Earnings before interest and taxes (EBIT) are therefore likely to have improved by 22 percent to 410 million euros.
The fashion group had recently forecast sales growth of 12 to 15 percent to up to 4.2 billion euros for 2023. Management had expected the operating result to increase by 20 to 25 percent to up to 420 million euros.
However, analysts had hoped for a little more from the operating result in day-to-day business. The Hugo Boss share price fell by eight and a half percent to 60.64 euros in the morning, its lowest level since November. According to analyst Frederick Wild from the investment house Jefferies, the operating result was disappointing, while sales were as expected.
In the fourth quarter, Hugo Boss’s sales rose by 10 percent to 1.18 billion euros. The fashion retailer had never made so much in one quarter before. All brands, regions and sales channels contributed to the growth, the group said. According to initial calculations, earnings before interest and taxes (EBIT) increased by 17 percent to 121 million euros in the last three months of the year compared to the same period last year.
Strong growth in Asia/Pacific
Business went particularly well in the Asia/Pacific region, where sales rose by a good quarter in the final quarter. In America, revenues increased by 15 percent. In Europe, the Middle East and Africa, however, they only rose by 5 percent. While Hugo Boss’ digital business remained on track for double-digit growth, the fashion company was also able to hold its own in stationary retail with an increase of 9 percent.
“We closed 2023 with excellent results and thus achieved a record year for Hugo Boss,” said company boss Daniel Grieder, according to the statement. He spoke of a robust basis for further market share gains and a milestone in achieving the medium-term financial goals that Hugo Boss set last year had also raised.
By 2025, the MDax group is targeting sales of 5 billion euros and an operating result (EBIT) of at least 600 million euros. Hugo Boss plans to present the detailed figures for the past year as well as the outlook for 2024 on March 7th. (dpa)