Hugo Boss Reports Strong Performance In Q4 2024
Hugo Boss closed 2024 with record sales of €4.3 billion, reflecting a 3% increase (currency-adjusted) driven by a strong fourth quarter performance (+6%). Growth was led by the Americas, which reported a 13% increase in Q4 (FY: +8%), followed by EMEA with a 6% rise in Q4 (FY: +3%). However, the Asia-Pacific region declined by 2% due to weak consumer demand in China.
Performance across sales channels was also robust. Brick-and-mortar wholesale grew by 15% in Q4 (+8% in FY), while digital sales increased 11% in Q4 (+6% in FY). Brick-and-mortar retail returned to growth in Q4, rising by 2% after flat performance for the full year. Efficiency gains in sourcing drove a 90 basis point improvement in gross margin in Q4 (+30 bp for FY). Operating expenses (excluding retail impairments) grew just 1% in the second half of the year, reflecting a sharp focus on cost efficiency.
EBIT for 2024 totaled €361 million (2023: €410 million), with an EBIT margin of 8.4% (2023: 9.8%), impacted by retail impairments. Free cash flow increased significantly to €497 million (2023: €96 million), supported by improvements in trade net working capital and CapEx efficiency. The company proposed a dividend of €1.40 per share for 2024 (2023: €1.35), reflecting confidence in sustained cash flow generation.
Looking ahead, Hugo Boss expects 2025 sales to remain between €4.2 billion and €4.4 billion (–2% to +2%), amid ongoing economic and geopolitical challenges. EBIT is projected to increase by +5% to +22%, reaching between €380 million and €440 million, with an EBIT margin between 9.0% and 10.0%, supported by further efficiency gains.
Daniel Grieder, CEO of Hugo Boss, said: “Since launching ‘CLAIM 5’ in 2021, we have made significant progress and achieved record sales in 2024 despite intensified macroeconomic challenges. Strategic initiatives such as the David Beckham partnership, Hugo Blue denim line, and the Hugo Boss XP loyalty programme have strengthened customer engagement. Our balanced approach to strategic investments and cost management positions us well to increase profitability and create shareholder value in 2025 and beyond.”
