Hugo Boss recorded group sales at EUR3.7bn (US$3.9bn) for the full year, representing an increase of 27% on a currency-adjusted basis.
CEO of Hugo Boss, Daniel Grieder, pointed out that it was a historical moment for the company to cross the EUR3bn threshold, explaining: “This robust performance was achieved despite high levels of macroeconomic and geopolitical uncertainty in fiscal year 2022, including global supply chain disruptions, the economic implications of the war in Ukraine, and long-lasting pandemic-related restrictions in China.”
The group’s net income for fiscal year 2022 amounted to EUR222m, up 54% against the prior-year level.
Operating profit (EBIT) increased by 47% to reach EUR335m, driven by a strong top-line performance, which more than compensated for ongoing brand, product, and digital investments as part of the company’s ‘Claim 5’ growth strategy, Hugo Boss said.
Sharing the outlook for 2023, Grieder said that the brand will continue to put particular emphasis on the execution of Claim 5, which includes the brand refresh strategies adopted in 2022.
He added: “All strategic initiatives in 2023 – be it from a brand, product or sales perspective – are aimed at fostering the strong top-line momentum, thereby taking a further important step towards the group’s sales target of EUR4bn by 2025. At the same time, Hugo Boss will continue to put strong emphasis on realising efficiency gains also in 2023, particularly via the ongoing optimisation of its global store network.
“For the global apparel industry, fiscal year 2023 is expected to be dominated by the persistently high level of macroeconomic and geopolitical uncertainty, including ongoing high levels of inflation and the related pressure on consumer demand, the ongoing war in Ukraine, as well as overall economic volatility.”
Brand refresh allowed it to shine
Louise Deglise-Favre, apparel analyst at GlobalData, parent company of Just Style, offers her view:
“Hugo Boss ended FY2022 on a high, with currency adjusted sales rising 15% in Q4, contributing to full-year sales growth of 27%, thanks to the impressive success of its brand refresh at the beginning of the year. Its design revamp to include more casualwear and sportswear within its ranges helped modernize its image and resonate more with Gen Z consumers, as did its global marketing campaigns featuring high profile celebrities and athletes such as models Kendall Jenner and Naomi Campbell, boxer Anthony Joshua, rapper Future and TikTok star Khaby Lame.”
However, she highlights that the group remains cautious in its FY2023 guidance and warns, “Hugo Boss is aware that such high levels of growth are not sustainable and high inflation and potential recessions in Europe will have an impact on consumer spending. The Group needs to improve awareness of its womenswear offer if it wants to establish itself as a solid player within this market.”
In January, Hugo Boss’ attempts to re-invent itself as a “modern and desirable brand” paid off, industry onlookers said, with the group’s quarterly sales exceeding the EUR1.0bn mark for the first time.