Value for money perceptions drive Hugo Boss sales in Q3
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Group sales increased to €1,029m ($1,12m) from €1,027m with marginal increases in its Boss Menswear, Boss Womenswear and Hugo ranges.

Sales in EMEA rose while sales in the Americas were flat. Sales fell 7% in Asia Pacific.

Hugo Boss said "ongoing macroeconomic and geopolitical uncertainties continued to impact the global industry development. Particularly in China, the overall market environment was affected by persistent subdued consumer demand, which in turn weighed on the business performance".

Meanwhile, muted consumer sentiment weighed on its brick-and-mortar retail business which declined 3% year on year. Wholesale on the other hand booked currency adjusted growth of 4% year on year. And its digital business saw revenues increase by 6%.

Hugo Boss Q3 Performance Overview

  • Sales flat at €1,029m

  • Operating income fell to €95m from €103m a year earlier

  • Net income fell to €56m from €63m a year earlier.

GlobalData apparel analyst Pippa Stephens commented: “Hugo Boss returned to marginal growth in Q3 FY2024, with revenue rising 0.2% to €1.0bn, marking an improvement on the prior quarter when it declined 1.1%, aided by its strong brand relevance and value for money perceptions.

"However, it continues to be hit by low consumer sentiment, with shoppers’ more cautious approach to purchasing muting its top line performance. This result led its sales for the first nine months of the year to rise 1.2%, putting it in good stead to achieve its FY2024 guidance of growth of 1% to 4%.

"Hugo Boss is also expecting further improvements to its operating profit, which fell 7.8% during the quarter and 18.7% across the nine months, forecasting between a decline of 15% and a rise of 5% for the full year, with ongoing cost efficiency measures helping to prop up its bottom line."

"Value for money perceptions drive Hugo Boss sales in Q3" was originally created and published by Just Style, a GlobalData owned brand.


 


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