After a record year 2023, 2024 is already off to a strong start for Hugo Boss. The German fashion group’s new strategy is driving growth in all markets except China.
Only China falters
Hugo Boss sales rose 5% in the first quarter to over 1 billion euros. Both brands, namely Hugo and Boss, as well as all regions and all channels contributed to the growth. Only in China was there a decline due to weak local consumer sentiment. Operating profit (EBIT) also grew 6% to 69 million euros. Operating margin increased by 10 basis points. Furthermore, the group managed to reduce inventories by 2%.
CEO Daniel Grieder is happy with the growth, as he warned that 2024 could be a slightly lesser year due to weak consumer confidence after announcing record figures for 2023. “In a volatile market environment, we remain focused on careful execution of our ‘CLAIM 5’ strategy,” the top executive now says.
Visible in department stores
n the EMEA region, sales, adjusted for exchange rate fluctuations, rose 5%, mainly due to strong sales improvements in Germany and double-digit growth in emerging markets. In the Americas, sales climbed 11%. Asia-Pacific landed at 4% growth, as China remained below last year’s level. Elsewhere, there was double-digit growth.
Physical retail grew 3%, according to Hugo Boss, due to greater in-store productivity and “moderate” physical expansion in 2023. Online sales rose 10%, while the German group is also pleased that retailers and department stores purchased 8% more through wholesale. The group says it is improving its visibility and penetration in key department stores. To present the summer collection, subsidiary brand Boss stunts with a luxury villa in Bali, a ‘real’ one for VIPs and a virtual version for the public at large.
