Following today’s release of Hugo Boss’ figures for the three months ending 30th September 2023; Pippa Stephens, senior apparel analyst at GlobalData, a leading data and analytics company, offers her view: “Hugo Boss has reported enviable growth in Q3 FY2023 as its latest collections and marketing campaigns continue to hit the mark with consumers, with group sales rising by 10.1% to €1.0bn. Though this is a slowdown from Q2 when its revenue increased by 16.9%, it remains an outperformer in the apparel market, and is expected to gain market share this calendar year. Its deceleration can partly be attributed to unfavourable currency impacts, with currency-adjusted revenue rising by 15%, as well as ongoing inflationary pressures, which are increasingly squeezing consumers’ discretionary incomes. Though Hugo Boss has maintained its previous guidance of 12-15% revenue growth for the full year, it suggests that the group is anticipating a further slowdown in its final quarter, with growth for its year-to-date currently standing at 17.0%. After seeing its EBIT rise by 12.0% to €103m in Q3, and 24.6% for year-to-date, Hugo Boss also retains its expectations that EBIT will rise 20-25% for FY2023.
“The group recorded growth across all regions in Q3 FY2023, with the Americas and Asia Pacific performing particularly well, with currency-adjusted revenue increasing by 22% and 21% respectively. The Americas was driven by over 20% growth in the US, where consumers are turning to its brands for day-to-day apparel, after having previously been synonymous with formalwear, while Asia Pacific was aided by the removal of COVID-19 restrictions in China at the end of last year. EMEA saw the weakest growth of 12%, despite ongoing macroeconomic and geopolitical issues that are rocking consumer confidence in the region. Though all sales channels experienced an uplift, online retained its superiority, with its reported revenue rising by 20.6% versus 8.0% for its physical locations, as digital investments, including the opening of its new Digital Campus in Portugal in June 2023, helped drive higher website traffic and conversion.
“Within its BOSS brand, womenswear prevailed, with sales growth 12.3ppts higher than for menswear at 19.7%. This is to some extent due to its womenswear division being less established giving it more scope to grow. Its autumn/winter runway show at Milan Fashion Week was also highly celebrated on social media, aiding awareness among female shoppers. HUGO’s growth was even stronger than BOSS’, with revenue rising by 20.7%, aided by strong demand for its latest autumn/winter collections. HUGO’s initiatives to boost appeal among younger shoppers are beginning to pay off, with its launch of a capsule collection in collaboration with influencer Bella Poarch at London Fashion Week in September 2023 resonating with Gen Z consumers.”
