Third quarter revenues at Hugo Boss increased 15% in the third quarter of 2023 to €1.03bn from €933m the previous year, roughly in line with analysts' estimate of €1.02bn in a poll provided by the company.
The revenues for Boss menswear and womenswear increased by 12% and 24%, respectively, while sales at Hugo expanded by 25% (currency-adjusted).
Sales in EMEA increased by 12% after the currency adjustment. In the Americas, sales increased by 22%, including a 20% rise in the US market. Asia/Pacific revenues rose by 21% after currency adjustment, with China posting 17% growth.
Revenues in digital channels increased by 25%, while brick-and-mortar retail businesses recorded 8% growth. Currency-adjusted sales in brick-and-mortar wholesale increased by 21%, fuelled by demand for Boss and Hugo’s fall/winter 2023 collections.
Key results from third- quarter:
- Revenues increased 15% to €1.03bn
- EBITDA increased to €188m from €176m the previous year
- Net income increased to €63m compared to €60m in 2022
“In an increasingly challenging market environment, we once again … gained further market share globally, driven by our several brand, product, and distribution initiatives,” said Hugo Boss chief executive officer Daniel Grieder.
Hugo Boss confirms outlook for full-year 2023
Considering its “robust performance” the group has confirmed its top and bottom-line outlook for fiscal year 2023, which had been revised upwards twice during the year.
The company said it will remain vigilant on current geopolitical tensions and macroeconomic uncertainties, which could drag consumer sentiment in the future.
Hugo Boss maintains its anticipation of sales growth in 2023, ranging from 12% to 15%, reaching a level between €4.1bn and €4.2bn.
Equally, the brand still predicts that EBIT will rise between 20% and 25%, reaching a range of €400m to €420m in 2023.
Hugo Boss increased its operating profit (EBIT) by 12% to €103m and EBIT margin increased 20 basis points to 10% and at 60.7%, the gross margin remained broadly at the prior-year level.
“Building on our strong brand momentum, we are well on track to achieve our financial targets and make 2023 another record year for Hugo Boss," added Greider.
