The Metzingen fashion group Hugo Boss AG was able to increase its turnover in the 2024 financial year to a new record level. However, the last year’s level missed the profit significantly. This emerges from the current annual report that the company published on Thursday.
The annual turnover increases by three percent
The group sales reached a height of 4.31 billion euros last year. In this way, he grew by three percent compared to 2023 and was as high as never before in company history. Adjusted to change course changes, the proceeds also grew by three percent.
In the case of the main brand Boss, sales with menswear rose by two percent (currency -adjusted +3 percent) to 3.33 billion euros and with Womenswear by three percent (currency -adjusted +3 percent) to 297 million euros. The Hugo label achieved an increase of four percent (currency -adjusted +5 percent) to 682 million euros.
The weak demand in China brakes sales growth
In the EMEA region, which includes Europe, the Middle East and Africa, Group sales increased by two percent (currency -adjusted +3 percent) to around 2.62 billion euros, in America it grew by seven percent (adjusted for currency) to EUR 1.02 billion.
The business in the Asian-Pacific area was less pleasant. Due to the weak demand in China, revenues in the region fell by four percent (currency -adjusted -2 percent) to 553 million euros. The global license revenue rose by four percent to 109 million euros.
The result fails to have the previous year’s level
Despite a slightly improved gross margin and extensive austerity measures, the operational result (EBIT) fell by twelve percent to 361 million euros compared to the previous year. The net profit, which was attributable to the shareholder, shrank by 17 percent to 213 million euros.
CEO Daniel Grieder emphasized the success in the implementation of the latest reform concept. “Since the introduction of” Claim 5 ‘in 2021, we have made clear progress along our strategic priorities and made above -average growth, “he said in a statement and referred to the” strong performance in the final quarter “.
For 2025, management predicts an increase in operational profit
However, the prospects for the current year are behavior. “Macroeconomic and geopolitical uncertainties remain high in 2025, whereby the subdued consumer mood is on business development,” the group admitted.
According to the company, the group turnover will therefore “remain largely at the previous year’s level”. Revenue in the range of 4.2 to 4.4 billion euros is expected, which would correspond to a development between -2 and +2 percent.
At the same time, management expects progress in the result. The EBIT is to reach a height of 380 to 440 million euros in 2025 and thus increase by five to 22 percent compared to the previous year. In the EBIT margin, which was 8.4 percent in 2024, an improvement is expected to 9.0 to 10.0 percent. A “balanced approach between strategic investments and cost efficiency” should “increase the increase in profitability,” said the group.