Hugo Boss Adjusts 2024 Outlook Amid Global Challenges

Hugo Boss has revised its financial outlook for 2024, citing persistent macroeconomic and geopolitical challenges that are dampening global consumer demand and industry growth. These factors impacted the company’s performance in key markets like the UK and China during the second quarter.

Preliminary figures show a 1% decline in currency-adjusted Group sales to EUR 1,015 million compared to Q2 2023. Despite this, revenues remained over 50% above 2019 levels, driven by the successful “CLAIM 5” growth strategy. The Americas saw a 5% increase in sales, while EMEA and Asia/Pacific experienced declines of 2% and 4%, respectively. Brick-and-mortar wholesale grew by 5%, but digital business and retail sales fell by 4% and 2%, respectively.

Operating profit (EBIT) dropped to EUR 70 million from EUR 121 million in Q2 2023, affected by softer sales, increased marketing investments, and higher retail costs. However, gross margin improved by 50 basis points to 62.9%. Free cash flow increased to EUR 143 million, aided by a 7% reduction in inventory levels.

Hugo Boss now expects Group sales to grow by 1% to 4% in 2024, reaching EUR 4.20 billion to EUR 4.35 billion, and EBIT to range between a decline of 15% to a growth of 5%, amounting to EUR 350 million to EUR 430 million.

CEO Daniel Grieder remains optimistic, stating, “Investing in our strong brands, Boss and Hugo, gives us confidence in driving above-trend growth and market share gains. With continued execution of our ‘CLAIM 5’ strategy, we aim to return to profitable growth and create substantial value for shareholders.”