Hugo Boss reports unchanged sales performance amid regional fluctuations, highlighting varied growth and setbacks.
- Sales in the Americas and EMEA region reflected positive growth, offset by declines in Asia Pacific.
- The company’s earnings before interest and taxes (EBIT) fell alongside a decrease in earnings per share.
- Despite financial challenges, Hugo Boss maintains its forecast for moderate annual growth.
- CEO Daniel Grieder remains focused on strategic efforts to enhance brand presence and cost efficiency.
In the third quarter, Hugo Boss experienced a varied geographical sales performance. While the company maintained flat overall sales at €1.02 billion (£863 million), growth in regions such as the Americas and the EMEA buoyed its revenue despite challenges elsewhere.
Sales in the EMEA region, after adjustments for currency, saw a modest 1% rise attributed to improvements in Germany, which helped mitigate weaker results in the United Kingdom and France. Simultaneously, in the Americas, Hugo Boss achieved a 4% increase in revenue, bolstered significantly by double-digit growth in Latin American markets.
Conversely, the Asia Pacific region faced a 7% downturn in currency-adjusted sales, primarily due to sustained sluggish demand in China. This decline highlights the ongoing regional economic challenges that the brand contends with.
The license business of Hugo Boss saw a promising increase in revenue by 12%, with the fragrance segment leading this positive trend. Nevertheless, despite these areas of growth, the company’s EBIT dropped by 7% to €95 million (£80 million), and earnings per share also declined by 13% to €0.79 (£0.66).
The firm’s outlook for the full year remains cautiously optimistic, adhering to a projected sales increase of 1% to 4%. This comes in light of an adjusted forecast from July, which originally envisioned a 3% to 6% rise. Hugo Boss anticipates EBIT for 2024 to range between -15% and +5%, totalling €350 million (£294 million) to €430 million (£361 million).
CEO Daniel Grieder, commenting on the company’s performance, emphasised the resilience shown despite the challenges in consumer sentiment. He stated, “In the third quarter, Hugo Boss achieved solid top-line improvements despite the ongoing weak consumer sentiment. This is a clear testament to the power of Boss and Hugo.” Grieder remains committed to investing in strategic initiatives to enhance customer connections and operational efficiency.
The third quarter results highlight Hugo Boss’s resilience amid regional market fluctuations and strategic focus on brand strengthening.
