Hugo Boss has revised its sales outlook for 2024 due to a challenging economic landscape, marking a strategic shift in response to global market conditions.
- Previously, Hugo Boss anticipated a sales growth of 3% to 6%, but it has now adjusted this to 1% to 4% for the fiscal year 2024.
- The company cites macroeconomic and geopolitical challenges as significant factors affecting global consumer demand and overall industry growth.
- In the second quarter, Hugo Boss reported a 1% decrease in sales, with notable regional variations including growth in the Americas but declines in EMEA and Asia/Pacific.
- Despite challenges, Hugo Boss remains confident in its brand strategy, with key investments in the Boss and Hugo brands aiming to sustain growth beyond current conditions.
Hugo Boss has made a strategic decision to lower its sales forecast for fiscal year 2024, adjusting expected growth from an earlier 3% to 6% down to 1% to 4% in group currency. This recalibration reflects a difficult second quarter where sales performance lagged behind previous expectations.
The fashion brand has identified ongoing macroeconomic and geopolitical challenges that have contributed to a slowdown in industry growth. These factors are seen as pivotal in dampening global consumer demand, prompting a prudent revision of financial forecasts.
In the second quarter, Hugo Boss’s sales dipped by 1% year-on-year, totalling €1.0bn in group currency. Notably, revenues in the Americas rose by 5%, providing a regional bright spot amid declines of 2% in EMEA and 4% in the Asia/Pacific markets, underscoring the uneven impact across global regions.
Wholesale sales through brick-and-mortar channels saw a positive 5% increase, although retail sales declined by 2%, indicative of lower store footfall. Operating profit (EBIT) for the quarter experienced a significant drop, falling by 42% to €70m.
Currency-adjusted sales for Boss menswear were down by 2%, while Boss womenswear recorded a 2% increase. The Hugo brand, aided by the launch of its denim-focused line Hugo Blue, saw a 3% rise in sales. The company attributes continued revenue strength to its growth strategy over the past three years, which has notably improved brand momentum.
Daniel Grieder, CEO of Hugo Boss, expressed confidence in the company’s ability to navigate the current macro uncertainties, citing ongoing investments in the Boss and Hugo brands as key to achieving above-trend growth and enhancing market share.
Hugo Boss remains optimistic about future growth, driven by strategic brand investments, despite current global economic uncertainties.
