Hugo Boss said brand momentum was fuelled by several brand initiatives implemented throughout 2023, including the successful launch of its Fall/Winter 2023 collections.
From a geographical perspective, all regions contributed to revenue growth in the final quarter of 2023. Currency-adjusted revenues in EMEA came in 7% above the prior-year level, reflecting solid sales increases in key markets such as Germany and France as well as double-digit improvements in emerging markets.
In the Americas, Hugo Boss sales increased 18% currency-adjusted in the three months.
Revenues in Asia/Pacific increased by 33% currency-adjusted, reflecting strong double-digit sales improvements in both China and South East Asia & Pacific.
The group’s digital business successfully continued its double-digit growth trajectory from previous quarters, with currency-adjusted revenue growth of 26%. This performance was driven by double-digit sales increases across all digital touchpoints.
In brick-and-mortar retail, momentum continued in the final quarter. Currency-adjusted revenues were up 12% compared to the prior year, driven by both store productivity improvements as well as additional selling space.
For the full year, Hugo Boss is anticipating currency-adjusted sales up 19% to a record level of €4.2bn and EBIT rising 22% to €410m. Final results will be published on 7 March.
GlobalData senior apparel analyst Pippa Stephens commented: “Hugo Boss has maintained its impressive upward trajectory, as its pivot to more casual ranges and premium positioning drive its desirability among consumers. In FY2023, the group achieved revenue growth of 15.0%, reaching €4.2bn, which was at the upper end of its growth guidance, which it had already upgraded twice throughout the year. Its gains are even more pronounced when looking on a currency-adjusted basis, which saw its sales rise 18%.
Despite H2 growth being much softer than H1, at 10.1% versus 20.8% respectively, it is encouraging that Hugo Boss did not experience a slowdown in the golden quarter, with Q4 sales growth in line with Q3 at 10.2%, despite the wider apparel market stalling. This highlights its brands’ resilience amid the challenging economic climate and provides hope for FY2024.
