Sales Performance

In the wake of the further successful execution of “CLAIM 5,” Group sales increased 18% currency-adjusted in 2023. 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 was broad-based in nature, with both our brands, all regions, as well as all distribution channels posting robust double-digit growth.

Sales by brand

Building on the successful branding refresh, our brands’ collections in 2023 have once again been very well received by both customers as well as wholesale partners worldwide. Thanks to the accompanying global 360° brand campaigns as well as several exciting fashion events, BOSS and HUGO were able to further enhance brand relevance. This, in turn, drove momentum throughout fiscal year 2023, thus enabling both our brands to further expand their market shares worldwide. Consequently, BOSS Menswear, BOSS Womenswear, and HUGO all posted robust double-digit sales improvements in 2023. Momentum remained strong across all wearing occasions, thus fully reflecting our brands’ 24/7 lifestyle images. Overall, currency-adjusted revenues for BOSS Menswear were up 16% year over year, while revenues for BOSS Womenswear even expanded by 24%. At HUGO, currency-adjusted sales were up 22%. Group Strategy

Sales by region

All regions contributed to the robust top-line performance in 2023, posting double-digit sales improvements. In EMEA, currency-adjusted revenues expanded by 13% year over year, reflecting double-digit growth in key markets such as Germany and France, as well as a particularly strong performance in emerging markets. With revenues up 23% currency-adjusted, momentum in the Americas remained strong throughout fiscal year 2023 with all of the region’s key markets posting double-digit growth, including the important U.S. market. In Asia/Pacific, currency-adjusted revenues came in 32% above the prior-year level, reflecting double-digit sales improvements in both China and Southeast Asia & Pacific. Earnings Development, Sales and Earnings Development of the Business Segments

Sales by distribution channel

Also from a channel perspective, growth in fiscal year 2023 was broad-based with double-digit revenue improvements across all consumer touchpoints. Currency-adjusted sales in our brick-and-mortar retail business (including freestanding stores, shop-in-shops, and outlets) came in 15% above the prior-year level, driven by both store productivity improvements as well as additional selling space. This also reflects the successful execution of various strategic initiatives to further optimize and modernize our global store network, including the rollout of the latest store concepts for BOSS and HUGO. In brick-and-mortar wholesale, currency-adjusted sales grew 18% in 2023. This performance reflects the ongoing strong reception of our BOSS and HUGO collections among wholesale partners, which enabled our brands to further improve their visibility and win market shares around the globe. At the same time, growth was supported by the further expansion of the Group’s franchise business, in particular to emerging markets. Our digital business successfully continued its double-digit growth trajectory, with currency-adjusted sales up 26%, reflecting both double-digit revenue increases at hugoboss.com as well as strong improvements in digital revenues generated with partners. Overall, total digital sales thus increased to 19% of Group sales in fiscal 2023. Revenues in our license business increased by 13% currency-adjusted, led by double-digit growth in the important fragrance business.

Network of own retail stores

In fiscal year 2023, the number of own freestanding retail stores moderately increased to 489 (2022: 470). A total of 33 BOSS stores were newly opened across all regions, with a particular focus on expanding our distribution footprint in China. In addition, a total of four HUGO stores opened their doors in EMEA and the Americas. On the other hand, 18 stores with expiring leases across EMEA and Asia/Pacific were closed in fiscal year 2023, with the aim of further optimizing our own distribution network.

Including shop-in-shops and outlets, the total number of own retail points of sale worldwide increased to 1,418 as of December 31, 2023 (2022: 1,316). Besides the additional freestanding retail stores, this development primarily reflects a further expansion of our shop-in-shop business to strengthen our brands’ presence with key retail partners, first and foremost in the U.S. market.

The total selling space of our own retail business increased by 5%, totaling around 186,000 sq m at year-end (December 31, 2022: around 177,000 sq m). Brick-and-mortar sales productivity increased by 4% to a level of around EUR 12,400 per square meter (2022: around EUR 11,900 per square meter), fully in line with our ambition to improve store productivity by at least 3% per annum to a level of more than 13,000 EUR per sq m by 2025. The increase in 2023 first and foremost reflects our robust top-line performance as well as the successful execution of strategic initiatives to further optimize and modernize our global store network, including the roll-out of our latest store concepts.