Macroeconomic and geopolitical instability will be high in 2025, in which business performance will be affected by consumer spirit. Effevance is expected to increase profitability from a balanced approach between strategic investment and cost efficiency. Sales in Europe, Middle East and EMEA are expected to remain stable, while the US is expected to increase in the percentage limit of low-conten. The Asia/Pacific region is expected to see a moderate decline, which reflects the uncertainties around the recovery of China’s industry.
Hugo Boss is expecting sales between € 4.2 billion in 2025 and € 4.4 billion (~ $ 4.58 billion and $ 4.80 billion). Despite macroeconomic instability, is ready to improve profitability. In 2024, sales increased to a record of € 4.307 billion (~ $ 4.69 billion) to € 4.307 billion (~ $ 4.69 billion). Ebit fell 12 percent to € 361 million (~ $ 393.49 million), while net income fell 17 percent yoyy.
The Group’s profitability is expected to improve, as the EBIT forecasts between € 380 million and € 440 million, corresponds to the EBIT margin of 8.4 percent to 9.0 percent to 10.0 percent in 2024. The percentage of sales in the form of Trade Pure Working Capital (TNWC) is expected to be between 19 percent and 20 participants. Capital Expendent (CAPEX) is estimated to be a range between € 200 million and € 250 million, which focuses on CAPEX efficiency and generalization of logistics investment.
“Since the launch of ‘Claim 5’ in 2021, we have made significant progress on our strategic journey and have made up-trend development. In 2024, we continued our development trajectory, hired a record sales of € 4.3 billion, which was supported by a strong performance in the last quarter. This success makes the great capacity of our two brands and hides the great capacity of our two brands, , Daniel Grider, Chief Executive Officer (CEO) of Hugo Boss. “As we enter the final year of ‘Claim 5’, our focus on improving profitability is much faster than ever. The concrete foundation we have built in previous years fills us with faith in our ability to succeed. ,
Financial performance in fiscal 2024
Hugo Boss reported a strong top-line increase in FY 2024 (FY24), receiving a record revenue of € 4.307 billion (~ $ 4.69 billion), 3 percent increase in both reports and currency-appointed terms. The growth in the fourth quarter (Q4) was particularly strong, with an increase in sales by 6 percent year-on-year, supported by a strong holiday season.
The pace of sales was fuel by brand and product initiative, with boss menswear and boss womenwear each growing 3 percent, while Hugo sales increased by 5 percent, which increased by the successful launch of Hugo Blue.
Area-wise, development varies in major markets. In EMEA, revenue increased by 3 percent, strong sales in Germany and the profit of double -points in emerging markets, Q4 sales increased by 6 percent. The US saw an increase in sales 8 percent, which is supported by high-singles growth in the US and 13 percent increase in Q4. In contrast, Asia/Pacific sales declined by 2 percent, affected by weak consumer demand in China, although Southeast Asia and Prashant recorded a high growth growth.
The brick-and-mortar retail remained flat for the year, as more sales per transaction were offset by less store traffic, as the consumer’s sentiments were reduced. However, Q4 saw a 2 percent increase, indicating a return to the growth. The wholesale business strongly performed, with an increase in 8 percent full-year sales and a 15 percent jump in Q4, showing the strong demand of boss and hugo between retail partners. The company’s global franchise expansion also contributed to its performance.
The company’s digital business continued the trajectory on its top, increasing 6 percent revenue in 2024, with Q4 sales increased by 11 percent. This growth was inspired by improving the official channel and an increase in digital sales through partner platforms.
The company improved up to 61.8 percent in its gross margin in 2024, up to 30 basis points, operated by sourcing capacity and low airfret use. The cost-saving measures maintained the operational expenditure with a slow increase in the second half (H2), with a 6 percent increase. Spending sales increased by 7 percent mainly due to the cost of brick-and-mortar. The Ebit declined by 12 percent to € 361 million (~ $ 393.49 million), which was affected by € 47 million in a high fee, reduced the EBIT margin by 8.4 percent. Ebitda rose 3 percent to € 775 million, while net income declined by 17 percent to € 224 million, with EPS at € 3.09.
“We have not only capitalized on our development opportunities, but have also laid equal emphasis on improving cost efficiency in all professional fields – including operations, marketing, sales and administration. And I am very happy that we made enough progress in the second half of the year, ”said the grider. “We managed to unlock meaningful productivity, which effectively limit expenditure growth and support the development of our lower line. At the same time, we generated a strong free cash flow in 2024, which highlights the strength of our business model. ,
Fibre2fashion news desk (sg)
