HUGO BOSS looks back on a successful business performance in fiscal year 2023, with significant top- and bottom-line improvements. This development first and foremost reflects our robust brand momentum, fueled by the continued successful execution of our “CLAIM 5” growth strategy. With both BOSS and HUGO continuing their market-share-winning growth trajectories, we achieved record sales of EUR 4.2 billion in 2023, representing currency-adjusted growth of 18%. In doing so, we once again strongly outgrew the global premium apparel market, while exceeding our initial 2025 sales target of EUR 4 billion two years ahead of plan. Driven by the strong top-line momentum, we recorded noticeable bottom-line improvements, with EBIT up 22% to EUR 410 million. HUGO BOSS thus successfully achieved its full-year 2023 sales and earnings targets, which had been revised upwards twice during the year. Our business performance is all the more remarkable considering the high level of macroeconomic and geopolitical uncertainty in fiscal year 2023. Comparison of Actual and Forecast Business Performance
The successful execution of several strategic initiatives as part of “CLAIM 5” spurred our operational and financial performance also in 2023. In line with our strategic claim “Boost Brands,” we further drove brand momentum following the comprehensive refresh of BOSS and HUGO in 2022, and created additional excitement with spectacular marketing campaigns and high-impact brand events. At the same time, as part of our claim “Product is Key,” we continued to put strong emphasis on further enhancing both brands’ 24/7 lifestyle images by increasingly leveraging the BOSS and HUGO brand lines. In 2023, we also achieved important successes with regards to our two strategic claims “Lead in Digital” and “Drive Omnichannel.” To these ends, together with our Digital Campus, we introduced several important digital features to further improve our digital journey as well as the e‑commerce experience. At the same time, we continued to modernize and optimize our global store network, including the rollout of our latest BOSS and HUGO store concepts, to significantly elevate customer experience. In line with our fifth claim “Organize for Growth,” we made further important progress towards driving meaningful efficiencies along our value chain, particularly as part of the ongoing implementation of our Digital TWIN, a smart and tech-driven business operations platform. Group Strategy
Overall, Group sales in fiscal year 2023 increased by 18% on a currency-adjusted basis. In Group currency, sales grew by 15% to a record level of EUR 4,197 million (2022: EUR 3,651 million), thus exceeding the EUR 4 billion threshold for the first time in the history of HUGO BOSS. Growth in 2023 was broad-based with both our brands, BOSS and HUGO, as well as all regions and distribution channels recording double-digit growth. At the same time, HUGO BOSS recorded robust bottom-line improvements in fiscal year 2023, with the strong top-line performance more than compensating for further investments into the business as part of “CLAIM 5” as well as a slight decline in gross margin. Consequently, the Group’s operating profit (EBIT) increased by 22% to an amount of EUR 410 million in fiscal year 2023 (2022: EUR 335 million). Earnings Development
In fiscal year 2024, our focus remains on further executing our “CLAIM 5” strategy. By building on our robust brand momentum, we are committed to continue leveraging the strong brand power of BOSS and HUGO. This in turn, should enable us to continue our growth trajectory and realize additional market-share gains. At the same time, the macroeconomic backdrop remains challenging, as reflected by elevated inflation and interest rate levels, a weakening global consumer sentiment, and mounting geopolitical tensions. Against this backdrop, we expect Group sales in reporting currency to increase within a range of 3% to 6% in 2024 (2023: EUR 4,197 million). At the same time, we anticipate EBIT to grow between 5% and 15% to a level of around EUR 430 million to EUR 475 million in 2024 (2023: EUR 410 million). 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. Overall, fiscal year 2024 will thus mark another milestone towards our mid-term financial ambition as part of “CLAIM 5.” Outlook
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). In view of its healthy balance sheet structure and ongoing positive free cash flow generation, the Group remains in an exceedingly solid economic situation at the time of preparing this report. Outlook
Metzingen, February 21, 2024
HUGO BOSS AG
The Managing Board
Daniel Grieder
Yves Müller
Oliver Timm