HUGO BOSS WITH STRONG PERFORMANCE IN Q4 2024 – PROFITABILITY TO INCREASE IN 2025 DESPITE CHALLENGING MARKET CONDITIONS
Q4/FY 2024 developments
- Currency-adjusted Group sales increase 3% to record level of EUR 4.3 billion in 2024, fueled by strong performance in Q4 (+6%)
- Accelerating momentum in the Americas (Q4: +13%; FY: +8%) and EMEA (Q4: +6%; FY: +3%); Asia/Pacific (Q4: –2%; FY: –2%) impacted by subdued consumer demand in China
- Robust revenue improvements in brick-and-mortar wholesale (Q4: +15%; FY: +8%) and digital (Q4: +11%; FY: +6%); brick-and-mortar retail returns to growth in Q4 (Q4: +2%; FY: 0%)
- Gross margin improvements (Q4: +90 bp; FY: +30 bp) driven by substantial efficiency gains in sourcing
- Growth in operating expenses excl. retail impairments declines noticeably in the second half of 2024, reflecting accelerated focus on cost efficiency (H1: +6%; H2: +1%)
- EBIT totals EUR 361 million (2023: EUR 410 million), impacted by retail impairments; EBIT margin amounts to 8.4% (2023: 9.8%)
- Free cash flow amounts to EUR 497 million in 2024 (2023: EUR 96 million), fueled by improvements in trade net working capital and CapEx efficiency
- Proposed dividend of EUR 1.40 per share for fiscal year 2024 reflects confidence in ongoing robust cash-flow generation (2023: EUR 1.35)
Outlook 2025
- Macroeconomic and geopolitical volatility to remain elevated in 2025, with business performance impacted by subdued consumer sentiment
- Group sales projected to remain broadly in line with prior year, ranging between EUR 4.2 billion and EUR 4.4 billion (–2% to +2%)
- Balanced approach between strategic investments and cost efficiency to ensure profitability increase
- EBIT to increase between +5% and +22% to EUR 380 million and EUR 440 million; EBIT margin to grow to a level of between 9.0% and 10.0%, supported by further efficiency gains
Daniel Grieder, Chief Executive Officer of HUGO BOSS: “Since the launch of ‘CLAIM 5’ in 2021, we have made significant progress on our strategic journey and delivered above-trend growth. In 2024, we continued our growth trajectory, hitting record sales of EUR 4.3 billion, supported by a strong performance in the final quarter. This success underscores the increased relevance of BOSS and HUGO and highlights the great potential of our two brands.
Yet, the macroeconomic challenges intensified in 2024 and led to a sharp industry slowdown. We therefore focused even more on customer centricity and on our most impactful initiatives. From welcoming David Beckham for a multi-year partnership with BOSS to unveiling our new denim line HUGO Blue and launching our new customer loyalty program HUGO BOSS XP, we kept customers inspired and engaged throughout the year. We have not only capitalized on our growth opportunities, but also placed equal emphasis on improving cost efficiency across all business areas – including operations, marketing, sales, and administration. And I am very pleased that we made substantial progress in the second half of the year. We managed to unlock meaningful productivity gains, which effectively limited expense growth and supported our bottom-line development. At the same time, we generated strong free cash flow in 2024, highlighting the strength of our business model.
As we enter the final year of ‘CLAIM 5,’ our focus on delivering profitability improvements is sharper than ever. The solid foundation we have built over the past years fills us with confidence in our ability to succeed. At the same time, macroeconomic and geopolitical volatility remains high, weighing on consumer sentiment and impacting our business performance since the beginning of the year. Against this backdrop, we stay focused and vigilant, closely monitoring global market developments. Likewise, we remain committed to leveraging the strength of our brands, while aligning strategic investments with efficient cost management. This balanced approach will help us drive profitability and create shareholder value in 2025 and beyond.”
HUGO BOSS publishes Annual Report 2024
Further information can be found in the HUGO BOSS Annual Report 2024. This year’s report comes with the motto “FOCUS,” highlighting the Company’s emphasis on game-changing initiatives and efficiency gains in 2024, laying an important foundation for the long-term success of HUGO BOSS. The digital report offers several interactive features, exciting stories, and a dedicated video statement of Daniel Grieder, CEO of HUGO BOSS.
If you have any questions, please contact:
Media Relations
Carolin Westermann
Senior Vice President Global Corporate Communications
Phone: +49 7123 94-86321
E-mail: carolin_westermann(at)hugoboss.com
Investor Relations
Christian Stöhr
Senior Vice President Investor Relations
Phone: +49 7123 94-87563
E-mail: christian_stoehr(at)hugoboss.com
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