Hugo Boss, a renowned German luxury fashion house, has exceeded its full-year sales and earnings targets for fiscal 2022 (FY22), posting record sales of 3,651 mn euro, an increase of 31 percent in reporting currency, compared to the previous fiscal. The company’s brands, Boss and Hugo, successfully expanded market share globally in FY22.
In addition to the top-line improvements, Hugo Boss also recorded significant bottom-line improvements in FY22. The strong top-line development more than compensated for ongoing brand, product, and digital investments as part of ‘CLAIM 5’ growth strategy, the company said in a press release.
Overall, EBIT in FY22 increased by a strong 47 percent to an amount of 335 mn euro, compared to 228 mn euro in FY21. Consequently, the group’s EBIT margin expanded noticeably, up 100 basis points to a level of 9.2 percent, compared to 8.2 percent in FY21, largely reflecting operating expense leverage in brick-and-mortar retail. At the same time, the group’s gross margin remained stable at 61.8 percent, as the overall higher share of full-price sales compensated for negative external effects caused by elevated sourcing costs and unfavourable currency effects.
Against the backdrop of ongoing macroeconomic and geopolitical uncertainty, Hugo Boss expects group sales in FY23 to increase at a mid-single-digit percentage rate, with all regions expected to contribute to growth. At the same time, Hugo Boss forecasts that it will increase its EBIT in FY23 within a range of 5 per cent to 12 percent to an amount of between 350 mn euro and 375 mn euro. In light of ongoing investment in products, brands, and digital expertise, all part of ‘CLAIM 5,’ the company will continue to drive efficiency gains, in particular when it comes to its brick-and-mortar retail store network.
“2022 was an outstanding year for Hugo Boss. Thanks to the rigorous execution of our ‘CLAIM 5’ strategy, we made 2022 a record year for our company with broad-based momentum across brands, regions, and consumer touchpoints. Most importantly, our bold branding refresh impressively fuelled brand power of Boss and Hugo. In achieving this, we have laid a strong foundation to further leverage the great potential of Hugo Boss going forward,” said Daniel Grieder, Chief Executive Officer of Hugo Boss.
