Hugo Boss AG (BOSSY), the renowned fashion house, has reported a significant 5% rise in sales for the first quarter of 2024, bolstering confidence despite the prevailing macroeconomic uncertainties. The company's steadfast execution of its 'CLAIM 5' strategy, aimed at harnessing growth opportunities while enhancing operational efficiency, continues to yield promising results.
In the face of a volatile market environment, Group sales reached EUR 1,014 million, reflecting a 6% increase on a currency-adjusted basis. This growth was widespread, with both brands, BOSS and HUGO, experiencing revenue upticks across all regions and distribution channels.
The success story extends beyond mere sales figures. Earnings before interest and taxes (EBIT) surged by 6% to EUR 69 million, with an improved EBIT margin of 6.8%. Notably, despite ongoing investments in the business, the company managed to drive profitability upwards.
Brand and product initiatives played a pivotal role in driving growth, with BOSS Menswear and BOSS Womenswear witnessing 5% and 7% respective increases in currency-adjusted sales. Meanwhile, the introduction of HUGO BLUE, a new denim-focused brand line, propelled HUGO's sales by an impressive 9%.
Geographically, all regions contributed to the positive trajectory, with EMEA, Americas, and Asia/Pacific regions recording sales growth ranging from 4% to 11% on a currency-adjusted basis.
Innovations in digital sales channels were particularly noteworthy, with a 10% surge in digital sales indicating the efficacy of the company's omnichannel approach. Brick-and-mortar retail also saw a 3% increase in sales, while wholesale channels experienced an 8% uptick, driven by robust demand for the latest collections.
Furthermore, prudent inventory management led to a 2% decline in inventories, bolstering free cash flow generation, which amounted to plus EUR 13 million for the quarter.
Looking ahead, Hugo Boss remains cautiously optimistic, reaffirming its full-year outlook amidst ongoing global uncertainties. With a projected sales increase of 3% to 6% and anticipated EBIT growth between 5% and 15%, the company is poised for continued success in 2024, leveraging its strong business platform and strategic initiatives to navigate the challenging landscape.