Hugo Boss AG (BOSSY) Q3 2024 Earnings Call Highlights: Navigating Growth Amidst Challenges

In This Article:

  • Group Sales Growth: Increased by 1% in Q3, contributing to a 2% year-on-year increase for the first nine months.

  • BOSS Menswear Sales: Up 1% in Q3.

  • BOSS Womenswear Sales: Improved by 2% in Q3.

  • HUGO Sales Growth: Increased by 2% in Q3.

  • Americas Revenue Growth: Expanded by 4% year-over-year in Q3.

  • EMEA Sales Growth: Up 1% in Q3.

  • Asia Pacific Sales Decline: Decreased by 7% in Q3.

  • Brick-and-Mortar Wholesale Sales: Increased by 4% in Q3.

  • Brick-and-Mortar Retail Sales: Decreased by 3% in Q3.

  • Digital Sales Growth: Increased by 6% in Q3.

  • EBIT: Declined by 7% to EUR95 million in Q3.

  • EBIT Margin: Reached 9.3% in Q3.

  • Gross Margin: Declined by 50 basis points in Q3.

  • Operating Expenses: Increased by 1% in Q3.

  • Net Income After Minorities: EUR55 million, down 13% year-over-year.

  • Earnings Per Share: Decreased by 13% to EUR0.79.

  • Trade Net Working Capital: Improved by 10% on a currency-adjusted basis.

  • Capital Expenditure: Increased by 28% to EUR89 million in Q3.

  • Free Cash Flow: Totaled EUR40 million in Q3.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Hugo Boss AG (BOSSY) reported a 1% increase in group sales for Q3, contributing to a 2% year-on-year growth over the first nine months.

  • The company successfully improved cost efficiency, limiting operating expenses growth to 1% in Q3, a significant improvement from the 9% increase in Q2.

  • Hugo Boss AG (BOSSY) achieved a 6% growth in its digital business, driven by strong performance with digital partners, particularly in Europe.

  • The company's marketing initiatives, including a successful campaign featuring David Beckham, more than doubled social media engagement compared to last year.

  • Hugo Boss AG (BOSSY) maintained a robust wholesale performance, with sales up 4% in Q3, marking the 14th consecutive quarter of revenue growth in physical wholesale.

Negative Points

  • Sales in the Asia Pacific region declined by 7% in Q3, primarily due to subdued consumer confidence in China.

  • The company's gross margin declined by 50 basis points in Q3, impacted by higher freight rates, a competitive promotional landscape, and adverse currency effects.

  • Brick-and-mortar retail sales were 3% below the prior year, affected by traffic declines in key markets such as the UK and China.

  • Net income after minorities decreased by 13% compared to the prior year, reflecting a modest increase in net financial expenses.

  • Hugo Boss AG (BOSSY) faces ongoing macroeconomic uncertainties and weak consumer sentiment, particularly impacting its performance in China.