Hugo Boss Reports Continued Strong Third-Quarter Performance And Increases Full-Year Forecast

Hugo Boss Announces Continued Strong Third-Quarter Performance And Increases Full-Year Forecast

Third-quarter group sales grew 18% in constant currency; +27% compared to 2019

Compared to 2019, stationary retail is gaining 25% more momentum.

Both brands, all territories, and all sales channels achieved double-digit sales growth, bringing the EBIT to EUR 92 million, an increase of 8% from the previous year.

Sales are forecasted to climb by 25% to 30% to a record level of EUR 3.5 billion to EUR 3.6 billion, while EBIT is anticipated to increase by 35% to 45%.

HUGO BOSS's chief executive officer, Daniel Grieder, said,

"We can look back on a really successful quarter in which our broad-based growth maintained." "Our excellent brand momentum instils optimism for the crucial fourth quarter. We are well on our way to making 2022 a record year for HUGO BOSS, thanks to the persistent application of our "CLAIM 5" approach. We will thereby achieve a significant milestone towards our 2025 objectives."

HUGO BOSS saw substantial sales increase in the third quarter of 2022, maintaining the excellent pace from the previous quarter. The highest sales quarter in the history of HUGO BOSS is attributable to the successful execution of various brand and product initiatives as part of the "CLAIM 5" growth plan. This is a 24 percent increase in the group's currency. Compared to 2019, sales increased 27% when adjusted for currency fluctuations (Q3 2019: EUR 720 million).

The success of the autumn/winter 2022 collection launch propels companies.In the third quarter, BOSS and HUGO's relevance was bolstered by marketing and product activities that were well recognised. August's worldwide debut of the Autumn/Winter 2022 collections was backed by two star-studded advertising campaigns that smoothly followed the brand's successful relaunch earlier in the year. Two fantastic fashion presentations gave the businesses a boost: BOSS and HUGO unveiled their new collections during Milan Fashion Week in September. As a consequence, social media knowledge continues to rise, allowing marketers to reach an overall younger demographic. Strong sell-through rates well above pre-pandemic levels highlight the success of both collections. As a consequence, BOSS and HUGO both had double-digit sales growth in the third quarter, with solid expansion across all wear situations.

While BOSS Menswear sales climbed by 20% compared to the same time in the prior year, BOSS Womenswear sales increased by 13%. In a comparison spanning three years, this indicates a substantial acceleration. HUGO's currency-adjusted sales growth relative to the prior year was similarly 13%.

Expansive expansion with double-digit sales gains in all areas.HUGO BOSS continued to expand on a wide scale throughout the third quarter. In all areas, the company's revenues increased by double digits, a result of strong client demand. The 17% growth in currency-neutral sales in Europe year-over-year reflects the sustained strength of demand in all key areas.

The sales trend remained unabated in the United States, with a currency-adjusted 18% gain over the previous year. In constant currency terms, the Americas grew by 35% in comparison to 2019, which corresponds to the increase experienced in the second quarter. In Asia/Pacific, third-quarter sales growth surged significantly. The area returned to double-digit growth, with a 33% increase in nominal terms.

Enhanced momentum in digital and traditional retailAll client touchpoints had double-digit sales growth in the third quarter, which contributed to the robust performance of all distribution channels. In the digital business, currency-neutral growth increased to 20% year-over-year, as a result of double-digit increases at the digital flagship website hugoboss.com and considerable gains in digital revenues created with partners. Even in over-the-counter retail, demand continued unabated, with an 18% rise in sales compared to the previous year after adjusting for currency fluctuations. In a comparison spanning three years, currency-neutral growth increased to 25%, with momentum increasing in each of the three areas.

The 18% rise in currency-adjusted wholesale sales in the stationary business compared to the prior year shows the continued strong demand from retail partners for the BOSS and HUGO lines. However, delivery scheduling variations hampered development in this channel to some degree.

Despite continuous investment in brands and goods, EBIT increased by 8%.HUGO BOSS boosted its operational result (EBIT) by 8% to 92 million euros in the third quarter of 2022 (Q3 2021: 85 million euros), which may be ascribed to the robust sales growth. This more than offset the mild reduction in gross margin and the rise in sales and marketing expenditures. As part of "CLAIM 5", the latter pertains mostly to continuous investments in the company. Specifically, marketing expenditures climbed by 39% over the prior year. This is partly due to the two global campaigns and fashion events launched by BOSS and HUGO to increase their brands' global recognition.

HUGO BOSS improves their projection for fiscal year 2022

HUGO BOSS is increasing its sales and profit estimate for the current fiscal year as a result of the outstanding third-quarter business performance. This includes both the continuing company investments and the constantly elevated macroeconomic risks. For the 2022 fiscal year, it is now anticipated that group sales would climb by between 25% and 30% to a new record high of EUR 3.5 billion to EUR 3.6 billion (previously: 20% to 25% to EUR 3.3 billion). up to 3.5 billion EUR). EBIT is now anticipated to rise by 35% to 45% to a range of EUR 310 million to EUR 330 million (previously: +25% to +35% to EUR 285 million to EUR 310 million).