Hugo Boss’ profit beats expectations ‘despite the volatile market’
Hugo Boss‘ has revealed that its revenue was up by 1% during the third quarter of 2024, despite continued weak demand in China.
Earnings before tax (EBIT) was down by 7% to EUR 95 million in Q3 supported by focused cost management.
Georgraphically, sales were up by 4% in the Americas and up by 1% in EMEA. However, sales were down by 7% in Asia/Pacific, impacted by “ongoing weak domestic demand in China”.
Wholesale was strong (up by 6%) as well as digital sales (up by 6%), however brick-and-mortar retail was down by 3%.
Hugo Boss’ continued success during 2024 is a result of its Claim 5 strategy. The marketing initiative sees the company enhance its 24/7 lifestyle images while tapping into growth opportunities, such as the launch of spin-off line HUGO Blue.
Daniel Grieder, Chief Executive Officer of Hugo Boss, said: “In the third quarter, Hugo Boss achieved solid top-line improvements despite the ongoing weak consumer sentiment. This is a clear testament to the power of BOSS and HUGO, which we have built in recent years by consistently executing our CLAIM 5 strategy.
“I am just as pleased that in the third quarter, we have also made important progress when it comes to improving cost efficiency. By further leveraging our global sourcing activities and rigorously executing our cost measures introduced earlier this year, we have improved productivity and effectiveness across our business, and supported our bottom-line development.”
Daniel Grieder
For the full-year, the group expects sales to sit between £3.6 billion to £3.8 billion (€4.3 billion to €4.45 billion), up by 3% to 6%. The company anticipates EBIT to grow between 5% and 15% to around £367 million to £406 million (€430 million to €475 million) in 2024.
Grieder added: “As we approach the important final quarter of 2024, we will continue investing in key strategic initiatives and projects to further strengthen our brands and elevate customer connection with BOSS and HUGO. At the same time, we remain focused on leveraging our strong operational platform and driving further cost efficiencies. This balanced approach is essential for safeguarding our profitability in 2024 and beyond, while ensuring the long-term success of Hugo Boss.”
