Hugo Boss hopes to outperform the fashion market in 2023. The Metzinger fashion group expects a further increase in sales and profits for the current year. In view of the uncertain economic environment, however, growth is likely to weaken compared to 2022.
Sales are expected to increase in the mid-single-digit percentage range. Hugo Boss expects earnings before interest and taxes (EBIT) to be five to 12 percent higher at 350 million to 375 million euros.
“The current macroeconomic and geopolitical uncertainties will remain in place for the time being. They will impact the industry in 2023, but we believe we can outperform the industry,” Managing Director Daniel Grieder said on a conference call Thursday.
Hugo Boss looks back on a record year 2022
According to the final figures, sales increased by 31 percent to almost 3.7 billion euros in the past financial year, and EBIT increased by 47 percent to 335 million euros.
The brand refresh at Hugo Boss led to increased demand across all channels and markets. Last year Boss’s Instagram account gained a whopping 1.5 million new followers and was the fastest growing fashion brand on the social network, according to Grieder. Targeting a younger audience, the Hugo brand increased its following on Tiktok by 900 percent.
The marketing investments in the image also pay off in business terms. Discount activities decreased in 2022, the proportion of full-price sales increased. Despite high freight costs and unfavorable currency effects, Hugo Boss was able to keep its gross margin at 61.8 percent, roughly at the previous year’s level.
store renewals
After introducing the new store concept in 60 branches, Hugo Boss plans to renew 100 stores from Amsterdam to Dubai this year. With the new concept, the new flagship store on London’s Oxford Street has increased sales per square meter by up to 50 percent, said Grieder.
Overall, sales in the company’s own retail business increased by 29 percent compared to the previous year, by 33 percent in the wholesale business and by 15 percent in the digital sales channels.
The bottom line is that Hugo Boss earned 2023, at 209 million euros, a good half more than in the previous year. Shareholders should therefore receive a dividend of EUR 1.00 per share, which is 30 cents higher. (FashionUnited/dpa)
This post was updated at 11:19 am on March 9, 2023.