Annual Report 2023

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Industry outlook for 2024 marked by elevated macroeconomic uncertainty

Successful execution of “CLAIM 5” remains primary focus also in 2024

Top- and bottom-line improvements targeted for 2024

Subsequent events

Between the end of fiscal year 2023 and the preparation of this report on February 21, 2024, there were no material macroeconomic, sociopolitical, industry-related, or Company-specific changes that the Management expects to have a significant impact on the Group’s earnings, net assets, or financial position.


The following report presents the view of the Management of HUGO BOSS with respect to the Company’s expected business performance in fiscal year 2024. It also describes the expected development of significant macroeconomic and industry-specific conditions. In doing so, it reflects Management’s current knowledge at the time the report was prepared, while also taking into account that actual developments may differ significantly from this outlook, either positively or negatively, in case that risks and opportunities materialize as described in the Risks and Opportunities section of this Annual Report. Other than the statutory publication requirements, HUGO BOSS does not assume any obligation to update the statements contained in this report. Report on Risks and Opportunities

Macroeconomic and industry-specific developments can have a major influence on the development of the Company’s operational and financial development. Statements made in this section regarding the Company’s expected business performance are therefore based on certain assumptions with regards to developments in the global economy and in the apparel industry. Over the course of the year, the Group will closely monitor the development of external conditions, in order to respond to any possible changes as quickly and comprehensively as possible.

Outlook for the global economy

In 2024, global growth is anticipated to remain muted as the global economy continues to face major challenges such as elevated inflation and interest rate levels, mounting geopolitical tensions, and overall weak global trade and investment flows. This thesis is also supported by the International Monetary Fund (IMF), which in its publication of January 30, 2024, expects the impact of macroeconomic challenges and geopolitical tensions to have an increasingly negative impact on global business and consumer confidence, thus weighing on the global economy. As interest rates appear to remain close to their peaks in most economies, monetary policy is likely to remain restrictive until there are clear signs that inflationary pressures are durably reduced. Thus, the global economy’s future health depends crucially on the successful calibration of monetary policy during the year while also the further course of military conflicts such as those in Ukraine and the Middle East should continue to add uncertainty. According to the IMF, global growth is thus forecast to stay at 3.1% in 2024 (2023: 3.1%). Risk Report, External Risks

By region, the IMF expects economic growth in the eurozone to slightly increase to 0.9% in 2024 (2023: 0.5%), as domestic demand is set to pick up, driven by real wage increases and recovering foreign demand. With wage growth slowing, savings accumulated during the pandemic running out, and the Federal Reserve maintaining tight monetary policy, growth in the U.S. is expected to slow to 2.1% in 2024 (2023: 2.5%). According to the IMF, the economy of China is forecasted to grow by 4.6% in 2024, but remain below the prior-year level (2023: 5.2%), amid lower investments in light of China’s property market crisis and a higher household savings rate.

Risks and uncertainties associated with these assumptions remain fundamentally high. Geopolitical tensions remain a key source of uncertainty and have risen further as a result of the evolving conflict in the Middle East and the associated impact on global supply chains.. Additionally, tight labor markets and wage demands to compensate for cost-of-living increases could contribute to persistent underlying inflationary pressures, dragging down economic growth. While financing conditions for emerging market and developing economies remain high, they are constraining priority spending and could trigger widespread emerging market debt distress. In China, contraction in the real estate sector and weaker consumption in the context of subdued consumer confidence pose downside risks. On the upside, stronger consumer spending could support growth if households make greater use of the savings accumulated during the COVID-19 pandemic, though this could also increase the persistence of inflation.

Industry outlook

For the global apparel industry, fiscal year 2024 is expected to be shaped by the ongoing high levels of macroeconomic and geopolitical uncertainty, which are expected to continue weighing on global consumer sentiment. In a joint study published in November 2023, The Business of Fashion and consulting firm McKinsey & Company estimate that revenue growth of the global apparel industry (excluding the luxury segment) in 2024 will remain relatively constant year-on-year in the range of between 2% to 4%. According to the study, global tourism is set to recover further, with global travel levels in 2024 projected to exceed those of 2019 for the first time. At the same time, Chinese travel to overseas destinations is not expected to fully return to pre-pandemic levels.

In Europe, industry growth (excluding the luxury segment) is expected to come in between 1% and 3% in 2024, thus broadly in line with subdued trends observed in the second half of 2023 (H1 2023: 5%; H2 2023: 1% to 3%). This first and foremost reflects ongoing weak consumer confidence and declining household savings in light of elevated inflation levels of the past two years. With consumer sentiment remaining weak, industry growth (excluding the luxury segment) in the U.S. is expected to recover only slightly, projected to come in at a level of between 0% and 2% in 2024 (H1 2023: −1%; H2 2023: −2% to 0%). However, a clearer than expected improvement in the inflation rate could also lead to slightly more positive growth and a “soft landing” scenario. Industry growth in China is expected to remain relatively weak compared to historical growth rates, as demand is projected to remain subdued in 2024, reflecting economic uncertainty and softer consumer confidence. Overall, The Business of Fashion and McKinsey & Company expect industry growth in China (excluding the luxury segment) to improve to a level of 4% to 6% in 2024 (H1 2023: 10%; H2 2023: 1% to 3%).

Outlook for HUGO BOSS

Following more than two years of successful execution of its “CLAIM 5” strategy and significantly above-average growth compared to the industry, HUGO BOSS will continue to build on its brand momentum also in 2024, aimed at continuing its growth trajectory and driving additional market-share gains. Against the backdrop of a persistently challenging global market environment, in 2024 our primary focus will therefore be on further executing our “CLAIM 5” strategy to continue leveraging the brand power of BOSS and HUGO built up in prior years. Our clear goal is to continue captivating consumers worldwide with compelling marketing campaigns, engaging brand events, and inspiring collections and collaborations. We are committed to further investing in brand-building initiatives as well as enhancing our product offerings to reinforce brand relevance and fortify our brands’ 24/7 lifestyle images. Additionally, we will continue to drive the digitalization of our business model and further expand our comprehensive omnichannel activities, including the ongoing modernization and selective expansion of our global store network. All together, these strategic initiatives will provide a robust foundation to achieve further robust top- and bottom-line improvements, thus enabling us to outperform our industry also in 2024. This in turn will take us another step closer towards our mid-term financial ambition. Group Strategy, 2025 Financial Ambition

Taking into account the ongoing heightened macroeconomic and geopolitical uncertainties as well as anticipated industry-specific conditions as outlined in this chapter, HUGO BOSS expects Group sales in reporting currency to increase within a range of 3% to 6% in 2024 (2023: EUR 4,197 million), with all segments contributing to growth. We expect sales in the EMEA region to grow in the low to mid single-digit range, while sales in the Americas are forecast to increase at a mid to high single-digit percentage rate. For Asia/Pacific, HUGO BOSS is confident of achieving growth in the high single- to low double-digit range in 2024.

In fiscal year 2024, the Company anticipates operating profit (EBIT) to grow by between 5% and 15% to a level of around EUR 430 million to EUR 475 million in 2024 (2023: EUR 410 million), with all our segments expected to contribute to the increase in EBIT. Consequently, the EBIT margin is expected to improve noticeably to a level between 10.0% and 10.7% (2023: 9.8%), with strong support coming from expected gross margin improvements in 2024. The Group’s net income is expected to develop broadly in line with EBIT and is thus also expected to increase by between 5% and 15% (2023: EUR 270 million).

Trade net working capital as a percentage of sales is expected to slightly improve, approaching a level of 20% in 2024 (2023: 20.8%). In particular, HUGO BOSS aims to further optimize its inventory position in 2024, thus making further strides towards its mid-term ambition of bringing inventories down to a level of below 20% of Group sales by 2025. Capital expenditure is forecast to increase to a level of between EUR 300 million and EUR 350 million in 2024 (2023: EUR 298 million). Investment activity will continue to be focused on the modernization and selective expansion of our global store network and the further digitalization of our business model. At the same time, and fully in line with our strategic claim “Organize for Growth,” we will put strong emphasis on the expansion of our logistics capacities and headquarters. Consequently, capital expenditure for 2024 is expected to slightly exceed our mid-term target range of between 6% and 7% of Group sales as laid out in “CLAIM 5.” As in the previous year, the majority of our investments will be allocated to our Corporate Units and the EMEA segment.

In view of the strong operational and financial performance in 2023, the very solid financial position, and management’s confidence in the Company’s long-term growth opportunities, the Managing Board and the Supervisory Board intend to propose to the Annual General Meeting on May 14, 2024, a dividend of EUR 1.35 per share for fiscal year 2023, corresponding to an increase of 35% year over year (2022: EUR 1.00). The proposal is equivalent to a payout ratio of 36% of the Group’s net income attributable to shareholders in fiscal year 2023, in line with the Company’s mid-term target payout ratio of between 30% and 50%, as laid out in “CLAIM 5” (2022: 33%). Assuming that the shareholders approve the proposal, the dividend will be paid out on May 17, 2024 equaling EUR 93 million (2022: EUR 69 million).

Outlook for fiscal year 2024



Results 2023


Outlook 2024

Group sales


Increase by 15%
to EUR 4,197 million


Increase within a
range of 3% to 6%

Sales by region







Increase by 11%
to EUR 2,562 million


Increase in the
low to mid-single-digit
percentage range



Increase by 21%
to EUR 955 million


Increase in the
mid- to high single-digit
percentage range



Increase by 23%
to EUR 576 million


Increase in the
high single-digit to low double-digit percentage range

Operating result (EBIT)


Increase by 22%
to EUR 410 million


Increase within a
range of 5% and 15%
to a level of around
EUR 430 million to EUR 475 million

Group’s net income


Increase by 22%
to EUR 270 million


Increase within a
range of 5% and 15%

Trade net working capital
as a percentage of sales




Improve slightly to a level approaching 20%

Capital expenditure


Increase by 55%
to EUR 298 million


Increase to a level of
EUR 300 million to EUR 350 million