In the third quarter, HUGO BOSS achieved solid top-line improvements despite the ongoing weak consumer sentiment. Most importantly, and despite the volatile market backdrop, we have further enhanced the relevance of our brands, deepening customer engagement and continuing driving brand experiences and product offerings. I am just as pleased that in the third quarter we have also made important progress when it comes to improving cost efficiency. By further leveraging our global sourcing activities and rigorously executing our cost measures introduced earlier this year, we have improved productivity and effectiveness across our business, and supported our bottom-line development.
4,197
EUR million sales
EUR million sales
2023
410
EUR million EBIT
EUR million EBIT
2023
18,738
Employees
Employees
2023
Five strong reasons for an investment in HUGO BOSS:
Two strong brands
BOSS and HUGO – two strong brands with global awareness, that are clearly distinguished by their fashionable style but meet the same high standards in terms of quality and fit, innovation and sustainability. A 24/7 approach ensures that customers are well dressed across all different wearing occasions with casualization and comfort being key. Two clearly distinguished marketing strategies – with a strong focus on digital as well as exceptional events and collaborations – create excitement among consumers and unleash the full potential of BOSS and HUGO.
Growth strategy 'CLAIM 5'
The growth strategy 'CLAIM 5' aims at driving sustainable and broad-based growth across both brands, all regions and consumer touchpoints. As part of 'CLAIM 5,' the Company aims to increase sales to EUR 5 billion, claim its position in the consumers’ minds, and keep winning market share for its strong brands BOSS and HUGO. The strategy aims to deliver on the Group's vision and ambition of becoming the premium tech-driven fashion platform worldwide, and one of the top 100 global brands.
Profitability improvements
With its growth strategy "CLAIM 5," HUGO BOSS targets an EBIT margin of at least 12%. The anticipated improvements in profitability primarily reflect the Company’s robust organizational and operational platform built in recent years, which will enable HUGO BOSS to further strengthen its operational execution and enhance effectiveness, realizing strong efficiency gains going forward. In particular, the Company aims to further optimize its end-to-end operations as well as its operating expense structure.
Strong free cash flow generation
Driven by the ongoing focus on further top- and bottom-line improvements, HUGO BOSS aims to generate strong free cash flow in the years to come. Fully in line with its capital allocation framework, the majority of free cash flow will be either reinvested into the business or distributed to shareholders through regular dividend payments. The Company’s payout ratio until 2025 will be in a range of between 30% and 50% of net income attributable to shareholders.
Strong commitment to sustainability
HUGO BOSS is committed to conscious, value-oriented management. Consequently, sustainability is firmly anchored in the Group strategy. The Company’s ambitious sustainability targets include decreasing CO2 emissions by at least 50% until 2030 and aiming for a “net zero” footprint by 2050. HUGO BOSS will also put particular emphasis on establishing an end-to-end circular business model. In this context, the Company aims to enable 80% of its products to become circular by 2030.
