Despite record sales, Hugo Boss annual profit drops 17 percent

A Boss store in Tokyo Credits: Hugo Boss AG German fashion group Hugo Boss AG achieved record sales in fiscal year 2024. However, profits fell significantly short of the previous year's level, according to the company's annual report released on Thursday. Annual sales increase by 3 percent Group sales reached 4.31 billion euros last year, a 3 percent increase compared to 2023, marking the highest level in the company's history. Adjusted for currency fluctuations, sales also grew by three percent. Sales for the core Boss brand increased by 2 percent (currency-adjusted +3 percent) to 3.33 billion euros for menswear and by 3 percent (currency-adjusted +3 percent) to 297 million euros for womenswear. The Hugo label achieved an increase of 4 percent (currency-adjusted +5 percent) to 682 million euros. Weak demand in China dampens sales growth In the EMEA region (Europe, the Middle East, and Africa), group sales increased by 2 percent (currency-adjusted +3 percent) to approximately 2.62 billion euros. In the Americas, sales grew by 7 percent (currency-adjusted +8 percent) to 1.02 billion euros. Business in the Asia-Pacific region was less positive. Due to weak demand in China, sales in the region declined by 4 percent (currency-adjusted -2 percent) to 553 million euros. Global licensing revenues increased by 4 percent to 109 million euros. Earnings fall short of previous year's level Despite a slightly improved gross margin and extensive cost-saving measures, operating profit (EBIT) decreased by 12 percent year-on-year to 361 million euros. Net profit attributable to shareholders declined by 17 percent to 213 million euros. CEO Daniel Grieder highlighted the successes in implementing the recent reform concept. "Since the introduction of 'Claim 5' in 2021, we have made significant progress along our strategic priorities and achieved above-average growth," he stated, referencing the "strong performance in the final quarter." Management forecasts an increase in operating profit for 2025 The outlook for the current year is, however, subdued. "Macroeconomic and geopolitical uncertainties remain high in 2025, with subdued consumer sentiment weighing on business performance," the company acknowledged. Group sales are therefore "expected to remain largely at the previous year's level," according to the company. Revenues are expected to be in the range of 4.2 to 4.4 billion euros, representing a development between -2 and +2 percent. At the same time, management anticipates progress in earnings. EBIT is expected to reach 380 to 440 million euros in 2025, an increase of 5 to 22 percent compared to the previous year. The EBIT margin, which was 8.4 percent in 2024, is expected to improve to 9.0 to 10.0 percent. A "balanced approach between strategic investments and cost efficiency" should "ensure increased profitability," the company explained. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com

Mar 13, 2025 - 09:24

Despite record sales, Hugo Boss annual profit drops 17 percent

A Boss store in Tokyo *Credits: Hugo Boss AG*

German fashion group Hugo Boss AG achieved record sales in fiscal year 2024. However, profits fell significantly short of the previous year's level, according to the company's annual report released on Thursday.

Annual sales increase by 3 percent

Group sales reached 4.31 billion euros last year, a 3 percent increase compared to 2023, marking the highest level in the company's history. Adjusted for currency fluctuations, sales also grew by three percent.

Sales for the core Boss brand increased by 2 percent (currency-adjusted +3 percent) to 3.33 billion euros for menswear and by 3 percent (currency-adjusted +3 percent) to 297 million euros for womenswear. The Hugo label achieved an increase of 4 percent (currency-adjusted +5 percent) to 682 million euros.

Weak demand in China dampens sales growth

In the EMEA region (Europe, the Middle East, and Africa), group sales increased by 2 percent (currency-adjusted +3 percent) to approximately 2.62 billion euros. In the Americas, sales grew by 7 percent (currency-adjusted +8 percent) to 1.02 billion euros.

Business in the Asia-Pacific region was less positive. Due to weak demand in China, sales in the region declined by 4 percent (currency-adjusted -2 percent) to 553 million euros. Global licensing revenues increased by 4 percent to 109 million euros.

Earnings fall short of previous year's level

Despite a slightly improved gross margin and extensive cost-saving measures, operating profit (EBIT) decreased by 12 percent year-on-year to 361 million euros. Net profit attributable to shareholders declined by 17 percent to 213 million euros.

CEO Daniel Grieder highlighted the successes in implementing the recent reform concept. "Since the introduction of 'Claim 5' in 2021, we have made significant progress along our strategic priorities and achieved above-average growth," he stated, referencing the "strong performance in the final quarter."

Management forecasts an increase in operating profit for 2025

The outlook for the current year is, however, subdued. "Macroeconomic and geopolitical uncertainties remain high in 2025, with subdued consumer sentiment weighing on business performance," the company acknowledged.

Group sales are therefore "expected to remain largely at the previous year's level," according to the company. Revenues are expected to be in the range of 4.2 to 4.4 billion euros, representing a development between -2 and +2 percent.

At the same time, management anticipates progress in earnings. EBIT is expected to reach 380 to 440 million euros in 2025, an increase of 5 to 22 percent compared to the previous year. The EBIT margin, which was 8.4 percent in 2024, is expected to improve to 9.0 to 10.0 percent. A "balanced approach between strategic investments and cost efficiency" should "ensure increased profitability," the company explained.

This article was translated to English using an AI tool.