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Hugo Boss reported flat sales to €1.02bn (£833m) in Q3 2024 despite ongoing macroeconomic and geopolitical uncertainties.
In light of the slowdown in sales, the group’s operating profit declined 7% with EBIT amounting to €95m (£79m) in the third quarter.
Over the first nine months of 2024, currency-adjusted group sales came in 2% above the prior-year level to €3bn (£2.5bn).
The menswear segment grew slightly to 1% at €785m (£654m) while womenswear improved 2% to €74m (£61m) and HUGO also grew 2% to €171m (£142m).
In EMEA, currency-adjusted sales were up 1% in the three-month period to €662m (£552m). The group said that the performance mainly reflects revenue improvements in Germany, which largely compensated for softer sales trends in France and in the UK.
In the Americas currency-adjusted revenues expanded by 4% while the Asia Pacific region decreased 7%, mainly reflecting revenue declines in China, where weak local consumer demand continued to weigh on domestic retail consumption.
Looking at the distribution channels, brick and mortar retail revenues declined 3% at constant currency while brick-and-mortar wholesale business, on the other hand, recorded currency-adjusted growth of 4%. Digital sales were up 6%.
Looking ahead, the company continues to expect group sales in 2024 to increase by between 1% and 4% in group currency to a level of around €4.20bn (£3.5bn) to €4.35bn (£3.6bn). EBIT for full-year 2024 is expected to develop within a range of 15% to 5%, amounting to around €350m (£291m) to €430m (£358m).
Daniel Grieder, chief executive officer of Hugo Boss, said: “As we approach the important final quarter of 2024, we will continue investing in key strategic initiatives and projects to further strengthen our brands and elevate customer connection with BOSS and HUGO. At the same time, we remain focused on leveraging our strong operational platform and driving further cost efficiencies. This balanced approach is essential for safeguarding our profitability in 2024 and beyond, while ensuring the long-term success of Hugo Boss.”
