In This Article:
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Revenue: Group sales reached a record EUR4.3 billion, a 3% increase.
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EBIT: EUR361 million, with an EBIT margin of 8.4%.
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Gross Margin: Improved by 30 basis points to 61.8%.
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Net Income: EUR213 million, resulting in earnings per share of EUR3.09.
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Free Cash Flow: EUR497 million, marking a substantial increase from the prior year.
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Digital Sales: Account for 20% of group sales, with a 6% increase.
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Americas Revenue Growth: 8% increase, with high single-digit growth in the US.
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EMEA Revenue Growth: 3% increase, led by improvements in Germany.
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Asia Pacific Sales: Declined by 2%, with low-teens decline in China.
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Operating Expenses: Increased by 6%, with a focus on cost efficiency.
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Dividend Proposal: EUR1.40 per share, a EUR0.05 increase from the prior year.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hugo Boss AG (BOSSY) achieved record group sales of EUR4.3 billion in 2024, despite a challenging market environment.
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The company successfully executed its CLAIM 5 strategy, enhancing brand relevance and achieving above-market growth.
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Hugo Boss AG (BOSSY) improved its gross margin by 30 basis points to 61.8% in 2024, supported by sourcing efficiency and reduced air freight usage.
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The company's digital business continued to grow, with sales up 6%, now accounting for 20% of group sales.
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Hugo Boss AG (BOSSY) reported a substantial increase in free cash flow to EUR497 million, reflecting strong cash generation capabilities.
Negative Points
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The global market environment deteriorated, impacting consumer demand and leading to a slowdown in industry growth.
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Sales in Asia Pacific declined by 2% year over year, with significant challenges in the Chinese market.
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Operating expenses increased by 6% in 2024, driven by inflationary pressures and higher retail-related impairments.
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Net income after minorities declined by 17% to EUR213 million, resulting in a decrease in earnings per share.
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The company anticipates a muted first-quarter performance in 2025, with challenges in key markets such as the US and China.
Q & A Highlights
Q: Can you provide more color on regional trends, particularly in key markets like Germany and the UK, and any softening trends since the start of the year? A: Yves Mueller, CFO, noted that current trends are weaker than the bottom end of guidance, with a mid-single-digit decline in the first two months, primarily in the US and China. This is attributed to lower consumer sentiment and store traffic. In Europe, trends are slightly better than in the US and China, but still reflect global uncertainties.