Germany’s Hugo Boss reports 18% surge in sales in Q4 FY22

Currency-adjusted sales for Boss Menswear and Boss Womenswear each grew by 14 per cent in the fourth quarter. Also, Hugo continued its double-digit growth trajectory, posting a sales increase of 18 per cent compared to the prior-year period, the company said in a press release.

Hugo Boss’ earnings before interest and taxes (EBIT) in Q4 FY22 increased 4 per cent year-on-year (YoY) to €104 million on a preliminary basis. As a result, the EBIT margin for fiscal 2022 is expected to increase to a level of 9.2 per cent (2021: 8.2 per cent).

Germany-based luxury fashion house Hugo Boss has reported 18 per cent growth in preliminary sales to €1,068 million in the fourth quarter (Q4) of fiscal 2022 (FY22), as compared to €905 million in Q4 FY21. Across the company’s brands, Boss Menswear, Boss Womenswear as well as Hugo posted double-digit sales improvements also in the fourth quarter.

From a geographical perspective, sales growth in the fourth quarter remained particularly strong in Europe, Middle East, Africa (EMEA), and the Americas. Currency-adjusted revenues in EMEA increased by 18 per cent YoY. Development was spurred by robust revenue improvements across key markets including the UK, France, and Germany, as well as a particularly strong performance in growth markets such as the Middle East. In the Americas, currency-adjusted sales were up 17 per cent, supported by double-digit growth in the important US market.

The company’s revenues in Asia/Pacific were down 3 per cent currency-adjusted, as strong double-digit improvements in Southeast Asia and Pacific were more than offset by sales declines in mainland China.

From a channel perspective, currency-adjusted growth in the group’s digital business increased by 9 per cent compared to the prior-year period.

In light of the performance during the final quarter of 2022, Hugo Boss exceeded its fiscal 2022 sales and earnings targets, which had been revised upwards twice during the course of the year.

On a preliminary, non-audited basis, Hugo Boss thus achieved record sales of €3,651 million in FY22, reflecting strong growth of 31 per cent in reporting currency (guidance: increase between 25 per cent and 30 per cent to €3.5 billion to €3.6 billion; 2021: €2,786 million). On a currency-adjusted basis, this translates into an increase of 27 per cent.

Subject to the completion of year-end closing procedures, the group anticipates that operating profit will increase by 47 per cent to an amount of €335 million for fiscal 2022, thereby exceeding current market expectations (guidance: increase between 35 per cent and 45 per cent to a level of €310 million to €330 million; 2021: €228 million).

Fibre2Fashion News Desk (DP)