HUGO BOSS Achieves Record Sales in 2024 Amid Challenging Market Conditions, Poised for Profitability Growth in 2025
Metzingen – HUGO BOSS Achieves Record Sales in 2024. HUGO BOSS plans to invest between €200 million and €250 million in 2025. HUGO BOSS, a global leader in fashion and lifestyle, delivered a strong financial performance in fiscal year 2024, achieving record sales while navigating an increasingly challenging macroeconomic and geopolitical environment. The company’s continued progress underscores the enduring appeal of its BOSS and HUGO brands, supported by a series of innovative initiatives under its successful “CLAIM 5” strategy.
Group sales in 2024 reached an all-time high of €4.3 billion, reflecting a 3% year-on-year increase in both reported and currency-adjusted terms. This growth was further accelerated by a robust fourth-quarter performance, with sales rising by 6%, buoyed by a successful holiday season. Notably, the Americas led the way with an 8% increase in full-year sales, and an impressive 13% surge in the fourth quarter. The EMEA region also delivered consistent growth, recording a 3% increase for the year and a 6% rise in the fourth quarter. However, sales in the Asia/Pacific region declined by 2% amid subdued consumer demand in China.
The company experienced significant success across its distribution channels. Brick-and-mortar wholesale sales grew by 8% for the full year, including a 15% increase in the final quarter, highlighting strong demand for BOSS and HUGO among wholesale partners. Meanwhile, digital sales rose by 6% for the year, with an 11% boost in the fourth quarter, reflecting the effectiveness of the company’s online initiatives. Despite challenges earlier in the year, brick-and-mortar retail returned to growth in the fourth quarter, reporting a 2% increase.
Operational efficiency gains were a key driver of HUGO BOSS’s performance in 2024. The company’s gross margin improved by 30 basis points to 61.8%, driven by substantial sourcing efficiencies and a reduced reliance on airfreight. This progress helped offset the impacts of inflation and promotional pressures. The company’s focus on cost management was evident in the second half of the year, with operating expense growth slowing significantly to just 1%.
Despite the improved sales and margin performance, EBIT decreased by 12% to €361 million, reflecting non-cash impairment charges of €47 million related to challenges in the brick-and-mortar retail environment. Nevertheless, free cash flow soared to €497 million, more than five times the prior-year level, showcasing the resilience of HUGO BOSS’s business model and its ability to generate strong cash flows.
Own production site Izmir, TR
In his remarks, Chief Executive Officer Daniel Grieder expressed pride in the company’s achievements: “Since the launch of ‘CLAIM 5’ in 2021, we have made remarkable progress, delivering above-trend growth and record-breaking sales in 2024. This performance reaffirms the strength of our BOSS and HUGO brands and the effectiveness of our strategy. As we enter the final year of ‘CLAIM 5,’ we remain fully focused on driving profitability improvements, despite the headwinds of macroeconomic and geopolitical volatility.”
Looking ahead to 2025, HUGO BOSS forecasts group sales to remain broadly in line with the prior year, ranging between €4.2 billion and €4.4 billion, amid an expected continuation of subdued consumer sentiment. However, the company anticipates notable profitability improvements, with EBIT projected to grow by 5% to 22%, reaching a range of €380 million to €440 million. The EBIT margin is expected to expand to between 9.0% and 10.0%, supported by further sourcing and cost efficiency initiatives.
To support its strategic goals, HUGO BOSS plans to invest between €200 million and €250 million in 2025, focusing on key initiatives such as digitalization, operational streamlining, and enhancing its logistics capabilities. The company also intends to maintain trade net working capital as a percentage of sales within the range of 19% to 20%, optimizing inventory management to support financial stability.
In recognition of its robust financial position, HUGO BOSS has proposed a dividend of €1.40 per share for fiscal year 2024, a 4% increase compared to the previous year, reflecting its confidence in sustained cash flow generation.
The results for 2024 and the outlook for 2025 highlight HUGO BOSS’s resilience and commitment to creating value for stakeholders. As the company continues to innovate and adapt to evolving market dynamics, it remains well-positioned for long-term growth and success.
