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March 11, 2022

Hugo Boss issues upbeat outlook for FY22 despite headwinds

Hugo Boss has issued an upbeat outlook for fiscal 2022 despite concerns remaining over the Covid-19 pandemic and the implications of a potential further escalation of the war in Ukraine on overall economic and sector growth. 

By Hannah Abdulla

Hugo Boss expects group sales to increase between +10% and +15% to a new record level of between EUR3.1bn and EUR3.2 bn, with all regions and both brands expected to contribute to this development. In addition, Hugo Boss forecasts that it will increase EBIT in 2022 within a range of +10% to +25% to an amount of between EUR250m and EUR 285m. This development will be driven by the anticipated strong top-line improvements. 

It also believes efficiency gains will “largely offset” the investments planned for 2022 as part of the Claim 5 strategy to strengthen products, brands, and digital expertise.

FY 2021 summary

  • Group sales grow 43% to EUR2.8bn, thus returning to pre-pandemic levels
  • EBIT significantly improves to EUR228m from EUR236m
  • Net income recovers to EUR144m from an EUR219m loss for the Jan-Dec 2020 period

For Hugo Boss, fiscal year 2022 represents an important milestone in achieving its 2025 financial targets as per its Claim 5 vision. All initiatives in 2022 are aimed at further strengthening the accelerated top-line momentum in 2021 and increasing Group sales to EUR4bn by 2025. At the same time, Hugo Boss wants to make further progress in 2022 towards its 2025 financial target of an EBIT margin of around 12%.

Specifically Hugo Boss will continue to invest in the further digitalisation of its business model and in the optimisation and modernisation of its global store network. The freshly relaunched online flagship hugoboss.com is of particular importance and is building its omnichannel strategy. For the first time, total digital sales added up to 20% of Group sales in 2021, marking a significant milestone for Hugo Boss on its way to growing the digital penetration to a level of between 25% and 30% of Group sales by 2025.

“With our strong comeback in 2021, we successfully kicked off our Claim 5 strategy,” says Daniel Grieder, CEO of Hugo Boss. “Right from its start, our growth strategy fueled brand momentum around the globe. The highly successful branding refresh and ongoing investments will further drive relevance for Boss and Hugo in the current year. We have everything it takes to reach record sales in 2022. As a team, we will take a big step closer towards our goal of becoming one of the top 100 global brands.”

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