Hugo Boss has had an impressive first quarter, with strong sales growth across all brands, regions, and channels. The company reported a 25% increase in currency-adjusted group sales, reaching €968 million, which puts them on track to achieve their sales target of €1 billion in the near future. Additionally, their earnings before interest and taxes (EBIT) saw a significant jump of 63% to €65 million in Q1.
As a result of their strong performance, Hugo Boss has raised their outlook for the year. They expect sales to grow by around 10% and reach €4 billion. The company also anticipates an increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) between 10% and 20%, with a range of €370 million to €400 million.
CEO Daniel Grieder is confident in the company’s continued success and aims to make 2023 yet another record-breaking year. He hopes to achieve their mid-term sales target of €4 billion already this year, significantly earlier than expected.
The strong Q1 performance can be attributed to Hugo Boss’s growth strategy called CLAIM 5, which provided substantial support. Their rebranded Boss and Hugo brands, along with their SS23 collections, were well-received globally. The company’s participation in key fashion events and global brand campaigns generated significant buzz for both brands.
In terms of sales growth, Boss Menswear, Boss Womenswear, and Hugo all saw double-digit growth in currency-adjusted sales. The EMEA region experienced robust consumer demand, especially in key markets like Germany and France. The Americas had faster revenue growth than ever before, with all markets in the region showing strong double-digit sales trajectories. Asia/Pacific also had a powerful start to the year, driven by improvements in South East Asia & Pacific and increased consumer sentiment in China.
Hugo Boss’s digital business saw strong growth, with sales increasing by 22% across all digital touchpoints. Revenues generated through their digital flagship, hugoboss.com, notably increased after the relaunch of their app in February. Physical stores and wholesale channels also performed excellently, with revenues up 26%.
Despite ongoing investments, Hugo Boss saw a considerable increase in EBIT, which grew by 63%. The new outlook for the full year predicts 10% to 20% EBIT growth, surpassing the previous forecast.
Hugo Boss’s strong performance across all areas not only showcases its ability to adapt to changing market conditions but also its capability to capitalize on growth opportunities. With an optimistic outlook for the year, the company is poised to achieve further success and solidify its position in the global fashion industry.
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