Hugo Boss, the renowned German fashion house, has kicked off 2024 on a high note, delivering impressive financial results that underscore its continued growth trajectory.

The company’s Q1 2024 performance is a testament to the successful execution of its “CLAIM 5” strategy, which has been driving brand relevance, product innovation, and operational excellence across all channels and markets.

Robust Revenue Growth Across Brands and Regions

In the first quarter of 2024, Hugo Boss reported a 6% currency-adjusted increase in Group sales, amounting to €1,014 million, with revenue improvements across both the BOSS and HUGO brands, all regions, and all distribution channels. The BOSS Menswear line saw a 5% increase in currency-adjusted sales, while BOSS Womenswear grew by an impressive 7%. The HUGO brand, bolstered by the successful launch of its new denim-focused line HUGO BLUE, recorded a 9% currency-adjusted sales growth.

Geographically, the company witnessed strong demand across all regions. The EMEA region contributed with low to mid-single-digit growth, the Americas market delivered mid to high single-digit percentage growth, and the Asia-Pacific region achieved high single to low double-digit growth.

Omnichannel Success and Operational Efficiency

Hugo Boss’s omnichannel strategy continued to pay dividends, with both digital and brick-and-mortar channels contributing to the overall growth. The digital channel saw a 25% currency-adjusted increase in revenues, while the brick-and-mortar retail business recorded an 8% currency-adjusted growth compared to the prior year.

The company’s wholesale business also flourished, with currency-adjusted sales increasing by 21%, fueled by strong demand for the BOSS and HUGO Fall/Winter 2023 collections.

Alongside top-line improvements, Hugo Boss also demonstrated operational efficiency, with a 6% increase in EBIT to €69 million and a 10 basis point expansion in EBIT margin to 6.8%.3 The company’s inventory management efforts paid off, with inventories declining by 2% currency-adjusted, further optimizing working capital.

Cautious Optimism for 2024

While celebrating its strong Q1 performance, Hugo Boss remains vigilant about the macroeconomic and geopolitical challenges ahead. The company has reiterated its full-year 2024 guidance, expecting sales to grow between 3% and 6%, reaching €4.3 billion to €4.45 billion.

However, CEO Daniel Grieder acknowledged the “persistently weak consumer confidence” and geopolitical tensions that could impact global retail spend, particularly in Europe and the Middle East.2Despite the challenges, Hugo Boss remains committed to its “CLAIM 5” strategy, focusing on building brand relevance, product innovation, and operational efficiency.

The company’s recent contract extension for Grieder until 2028 underscores its confidence in his leadership and the strategic direction he has set.