Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Hugo Boss has reported that its sales increased 25% to €968m (£850.8m) during the first quarter of the year, compared with €772m (£678.5m) in Q1 2022.
The German retailer attributed the year’s strong results to its ‘Claim 5’ strategy’s “consistent implementation”, which gave the business “considerable momentum throughout the quarter.”
Claim 5 is the brand’s new growth strategy aimed at doubling sales to €4bn (£3.52bn).
It also achieved an operating result (EBIT) of €65m (£57.13m) in the first quarter of 2023, marking a 63% increase compared with the €40m (£32.16m) in posted the previous year (Q1 2022).
It also said that this development is mainly due to strong sales growth, which more than made up for a minor fall in gross margin of 30 basis points to 61.4% and ongoing investments in the company under “Claim 5”.
Additionally, the company reported double digit growth for all its brands across all regions, and all sales channels, with core markets like Germany and France experiencing sales growth of 28% and 17%, respectively.
Looking forward, Hugo Boss said it expects sales to increase by 10% to around €4bn (£3.52bn) and EBIT is expected to increase to between €370m (£325m) and €400m (£351.5m) (10% to 20%).
Daniel Grieder, CEO of Hugo Boss, said: “We have made an extremely successful start to the year after further accelerating brand momentum worldwide.
“Our strong performance in the first quarter once again underscores the success of ‘Claim 5’ , making another record year for our company and achieving our medium-term sales target of €4bn (£3.52bn) this year – and thus significantly earlier than expected.”
