Annual Report 2023

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Income Statement

Income statement (in EUR million)



Jan. – Dec.


Jan. – Dec.


in %








Cost of sales







Gross profit







In % of sales






(30) bp

Operating expenses







In % of sales






90 bp

Thereof selling and marketing expenses







Thereof administration expenses







Operating result (EBIT)







In % of sales






60 bp

Financial result







Earnings before taxes







Income taxes







Net income







Attributable to:







Equity holders of the parent company







Non-controlling interests







Earnings per share (in EUR)1







Income tax rate in %








Basic and diluted earnings per share.

At 61.5%, the gross margin in fiscal year 2023 was slightly below the prior-year level (2022: 61.8%). Positive impacts from lower freight cost levels were more than offset by unfavorable currency effects as well as an increasingly promotional environment towards the end of 2023. With regard to the latter, promotional activity at HUGO BOSS was particularly low in the prior year, reflecting the exceptionally strong development of our full-price business in 2022 following the implementation of our comprehensive branding refresh. Group Strategy

Development of gross profit and gross margin

2023 2022 Gross profit (in EUR million) Gross margin (in %) +14% 61.8 (30) bp 2,581 2,256 61.5

Operating expenses increased by 13% in fiscal year 2023, reflecting an increase in both selling and marketing expenses as well as higher administration expenses. As a percentage of sales, however, operating expenses decreased 90 basis points to a level of 51.7% (2022: 52.6%), as further efficiency gains, particularly in brick-and-mortar retail, more than offset important investments into the business as part of “CLAIM 5.” Notes to the Consolidated Financial Statements, Notes 2, 3, and 9

Development of operating expenses

2023 2022 Operating expenses (in EUR million) Operating expenses (in % of sales) +13% (90) bp 1,921 2,171 52.6 51.7

Selling and marketing expenses increased by 13% compared to the prior-year period, mainly due to an increase in fulfillment, variable rental, and payroll expenses in light of the strong top-line momentum. Besides that, the development is also attributable to higher marketing investments, largely reflecting the successful brand campaigns and fashion events of BOSS and HUGO over the course of the year. Total marketing expenses grew 14% to EUR 328 million, representing 7.8% of Group sales (2022: EUR 288 million; 7.9% of sales). Marketing expenses thus were fully in line with our target corridor of between 7% and 8% as laid out in “CLAIM 5.” Selling expenses for our brick-and-mortar retail business totaled EUR 870 million in 2023, up 8% compared to the prior year (2022: EUR 807 million). As a percentage of sales, however, they declined by 140 basis points to 20.7% (2022: 22.1%). Overall, as a percentage of sales, selling and marketing expenses decreased by 60 basis points to a level of 41.6% in 2023 (2022: 42.1%). Notes to the Consolidated Financial Statements, Note 2, Group Strategy, “Boost Brands”

Administration expenses increased by 11% in fiscal year 2023. This development is mainly attributable to higher payroll expenses and an increase in digital investments, both aimed at supporting the successful execution of “CLAIM 5,” as well as overall cost inflation. As part of this, general administration expenses were up 11% to EUR 336 million (2022: EUR 302 million), while also research and development expenses incurring in the collection development increased by 11%, amounting to EUR 89 million (2022: EUR 81 million). Overall, as a percentage of sales, administration expenses decreased by 30 basis points to 10.1% (2022: 10.5%). Notes to the Consolidated Financial Statements, Note 3, Product Development and Innovation

Operating profit (EBIT) increased by 22% to EUR 410 million in fiscal year 2023 (2022: EUR 335 million). This development was driven by the strong top-line performance, enabling the Company to generate operating leverage despite ongoing investments into the business as part of “CLAIM 5” as well as the slight decline in gross margin development. Accordingly, the Group’s EBIT margin increased noticeably, up 60 basis points to 9.8% (2022: 9.2%). Currency effects had a slightly negative impact on EBIT in fiscal year 2023.

Development of EBIT and EBIT margin

2023 2022 410 EBIT (in EUR million) EBIT margin (in%) 335 +22% 9.2 +60 bp 9.8

Depreciation and amortization was broadly in line with the prior-year level, amounting to EUR 342 million (2022: EUR 345 million). At EUR 53 million, net financial expenses (financial result) in fiscal year 2023 were 7% above the prior-year level (2022: EUR 50 million), as the Company recorded higher interest expense in lease accounting under IFRS 16, reflecting the overall higher interest rate levels. The Group tax rate was slightly above the prior year, thus gradually normalizing to a level of 24%. In the prior year, lower-than-anticipated back tax payments and the revaluation of deferred tax assets supported a particularly low tax rate (2022: 22%). Accordingly, the Group’s net income for fiscal year 2023 amounted to EUR 270 million, up 22% against the prior-year level (2022: EUR 222 million). In this context, net income attributable to shareholders increased by 23% to EUR 258 million (2022: EUR 209 million). Currency effects had a slightly negative impact on the Group’s net income in fiscal year 2023. Notes to the Consolidated Financial Statements, Note 4 and 5