Full year 2022
- Currency-adjusted Group sales increase 27% to new record level of EUR 3.7 billion
- Broad-based growth across both brands, all regions, and all consumer touchpoints
- EBIT grows 47% to EUR 335 million driven by strong top-line momentum
Outlook 2023
- Successful execution of “CLAIM 5” remains primary focus also in 2023
- Group sales expected to grow at a mid-single-digit percentage rate
- EBIT to increase by +5% to +12% to a level of EUR 350 million to EUR 375 million
“2022 was an outstanding year for HUGO BOSS,” says Daniel Grieder, Chief Executive Officer of HUGO BOSS. “Thanks to the rigorous execution of our ‘CLAIM 5’ strategy, we made 2022 a record year for our Company with broad-based momentum across brands, regions, and consumer touchpoints. Most importantly, our bold branding refresh impressively fueled brand power of BOSS and HUGO. In achieving this, we have laid a strong foundation to further leverage the great potential of HUGO BOSS going forward.”
For HUGO BOSS, fiscal year 2022 represented an important milestone along its “CLAIM 5” growth strategy, marking the first full year of successful strategy execution. In this context, the Company made significant progress across key business areas – whether from a brand, product, or sales perspective – which spurred its operational and financial performance. Above all, the new and powerful brand images of BOSS and HUGO drove momentum throughout the year, resulting in strong full-price sales and enabling both brands to successfully expand market shares around the globe. All this led to significant top- and bottom-line improvements for HUGO BOSS in fiscal year 2022. Supported by a stellar performance also in the final quarter of the year, the Company ultimately exceeded its full year sales and earnings targets, which had been revised upwards twice during the year.
As announced in January 2023, sales in fiscal year 2022 increased by a strong 27% currency-adjusted to a record level of EUR 3,651 million. This means, for the first time in the history of HUGO BOSS, the Company exceeded the EUR 3 billion threshold (2021: EUR 2,786 million). In Group currency, this translates into an increase of 31%. This robust performance was achieved despite high levels of macroeconomic and geopolitical uncertainty in fiscal year 2022, including global supply chain disruptions, the economic implications of the war in Ukraine, and long-lasting pandemic-related restrictions in China.
EBIT grows 47% despite significant investments into the business
In 2022, HUGO BOSS also recorded significant bottom-line improvements as the robust top-line performance more than compensated for ongoing brand, product, and digital investments as part of “CLAIM 5.” This also includes a step-up in marketing investments of 41%, largely reflecting the successful campaigns and fashion events over the course of the year, which drove brand relevance globally. Overall, EBIT increased by a strong 47% to an amount of EUR 335 million (2021: EUR 228 million). Consequently, the Group’s EBIT margin expanded noticeably, up 100 basis points to a level of 9.2% (2021: 8.2%), largely reflecting operating expense leverage in brick-and-mortar retail. At the same time, the Group’s gross margin remained stable at 61.8%, as the overall higher share of full-price sales compensated for negative external effects caused by elevated sourcing costs and unfavorable currency effects.
Execution of “CLAIM 5” remains primary focus in 2023
“Building on our regained brand power, in 2023 we will work relentlessly to further drive top- and bottom-line growth,” says Daniel Grieder. “Thanks to our excellent team, our strong brands BOSS and HUGO, and the power of ‘CLAIM 5,’ I have every confidence that we are heading into another successful year. Together, we will continue to pursue our ambition to ultimately become one of the top 100 global brands.”
For HUGO BOSS, fiscal year 2023 represents a further important milestone in achieving its 2025 financial ambitions. The main focus this year will therefore continue to be on the determined execution of “CLAIM 5.” This includes, above all, building on the strong brand power gained in 2022. In this context, HUGO BOSS remains fully committed to winning over consumers from around the globe through engaging marketing campaigns, exciting brand events, and inspiring collections, all aimed at further boosting brand power. Only recently, BOSS and HUGO celebrated the launch of their new Spring/Summer 2023 collections, with the respective global brand campaigns once more building on the two powerful mottos #BeYourOwnBOSS and #HUGOYourWay. Both collections are resonating extremely well with global consumers as reflected by strong initial sell-through rates. Likewise, HUGO BOSS looks back at a robust order intake from its wholesale partners for much of 2023, providing further evidence of the success of the brands’ new and unique “look and feel.” Through its diverse product mix, HUGO BOSS fully lives up to its promise to dress customers from head to toe, and for every occasion 24/7.
In line with the Company’s vision of being the leading premium tech-driven fashion platform worldwide, HUGO BOSS will push ahead with the further digitalization of its business model in 2023. By fully leveraging the power of data, the Company will reduce collection complexity and further enhance operational efficiency. In addition, HUGO BOSS will link digital and physical commerce even more closely to offer its customers a best-in-class omnichannel experience. On that note, the recent relaunch of the strongly improved HUGO BOSS app, significantly enhancing the mobile shopping experience, also plays an important role. At the same time, a strong focus remains on the ongoing modernization of the the Company’s global store network to drive store productivity. Already today, consumers can experience brand-led, innovative retail concepts at more than 200 points of sale worldwide, with more openings and renovations to follow. This also includes the recent reopening of BOSS on London’s Regent Street, and the planned renovation of the BOSS store at Dubai Mall later this year.
Further top- and bottom-line improvements anticipated for 2023
All strategic initiatives will provide a robust foundation for fostering the strong top-line momentum gained in 2022. Against the backdrop of ongoing macroeconomic and geopolitical uncertainty, HUGO BOSS expects Group sales in 2023 to increase at a mid-single-digit percentage rate, with all regions expected to contribute to growth. At the same time, HUGO BOSS forecasts that it will increase its EBIT in 2023 within a range of +5% to +12% to an amount of between EUR 350 million and EUR 375 million. In light of ongoing investment in products, brands, and digital expertise, all part of “CLAIM 5,” HUGO BOSS will continue to drive efficiency gains, in particular when it comes to its brick-and-mortar retail store network.
Dividend increase of 43% proposed for fiscal year 2022
The Managing Board and Supervisory Board intend to propose to the Annual Shareholders’ Meeting on May 9, 2023 a dividend of EUR 1.00 per share for fiscal year 2022. This corresponds to an increase of 43% year over year (2021: EUR 0.70), reflecting the Company’s outstanding operational performance in 2022, its very robust financial position, and management’s confidence in the continued success of “CLAIM 5.” The proposal is equivalent to a payout ratio of 33% of the Group’s net income attributable to shareholders in fiscal year 2022, thus fully in line with the Company’s targeted payout range of between 30% to 50% as set out in “CLAIM 5.”
Further information can be found at group.hugoboss.com. This also includes the digital version of the HUGO BOSS Annual Report 2022 with many interactive features, exciting stories, and dedicated video statements from all three Managing Board members.