The Metzingen-based fashion group Hugo Boss AG was able to achieve strong growth in sales and earnings in the third quarter of the 2023 financial year. In view of the latest developments, the board confirmed its forecasts for the full year on Thursday.
The clothing supplier experienced “a successful third quarter,” emphasized CEO Daniel Grieder. “In an increasingly challenging market environment, we have successfully asserted ourselves thanks to numerous brand, product and sales initiatives and have continued to gain market share worldwide,” he explained in a statement. “Building on our strong brand momentum, we are fully on track to achieve our financial targets and make 2023 another record year for Hugo Boss.”
Sales of the Hugo brand increase by 20 percent
In the quarter ended at the end of September, group sales reached almost 1.03 billion euros, exceeding the previous year’s level by ten percent. Adjusted for exchange rate changes, revenue even grew by 15 percent.
The Hugo label developed particularly dynamically, with sales increasing by 20 percent (currency-adjusted +25 percent) to 169 million euros. At the core brand Boss, revenues from men’s fashion rose by seven percent (currency-adjusted +12 percent) to 786 million euros and from women’s fashion by 19 percent (currency-adjusted +24 million euros) to 73 million euros.
The clothing provider can grow in all market regions
The group recently achieved strong growth in all market regions. In the EMEA region, which includes Europe, the Middle East and Africa, quarterly sales increased by nine percent (currency-adjusted +12 percent) to 653 million euros. In Germany, Hugo Boss achieved an increase of eight percent.
In the Asia-Pacific region, revenues grew by eight percent (currency-adjusted +21 percent) to 120 million euros, in America they even rose by 16 percent (currency-adjusted +22 percent) to 228 million euros. Worldwide license income increased by eight percent to 26 million euros.
The annual forecasts remain unchanged
Despite higher sales and marketing expenses, the group was also able to significantly improve its earnings. The operating profit (EBIT) amounted to 103 million euros, exceeding the level of the previous year’s quarter by twelve percent. The net profit attributable to shareholders rose by nine percent to 63 million euros.
Due to the “robust business development” in the most recent quarter, the board saw no reason to change its annual forecasts. He therefore expects a further increase in sales of twelve to 15 percent to 4.1 to 4.2 billion euros in 2023. The aim for EBIT is still to increase by 20 to 25 percent to 400 to 420 million euros, and consolidated earnings should grow by the same amount.