Cost of sales increased slightly to €410 million, up 1 per cent YoY from €404 million in Q3 2023. Gross profit as a percentage of sales was 60.2 per cent, down by 50 basis points (bp) from 60.7 per cent in Q3 2023, Hugo Boss stated in a press release.
Hugo Boss reported sales of €1,029 million in Q3 2024, a 1 per cent increase YoY.
Gross profit fell 1 per cent to €619 million, with net income down 12 per cent to €56 million.
Digital sales rose 6 per cent, while Asia/Pacific sales declined 8 per cent.
The company’s sales in the first 9 months of 2024 reached €3,058 million, with stable gross margin and anticipated year-end growth of 1-4 per cent.
Total net income of the company decreased by 12 per cent to €56 million, down from €63 million in Q3 2023 and net income attributable to equity holders of the parent company fell by 13 per cent to €55 million from €63 million in Q3 2023.
The total operating expenses increased by 1 per cent to €524 million in Q3 2024, up from €520 million in Q3 2023, and operating expenses as a percentage of sales rose to 50.9 per cent, a 30 bp increase from 50.6 per cent in Q3 2023.
The operating result (EBIT) decreased by 7 per cent to €95 million, down from €103 million in Q3 2023. EBIT as a percentage of sales fell to 9.3 per cent, an 80 bp decline from 10.0 per cent in Q3 2023. Basic earnings per share in Q3 2024 was €0.79, a 13 per cent decrease from €0.91 in Q3 2023.
By brand, Boss menswear sales were flat at €785 million and Boss womenswear sales grew by 1 per cent YoY to €74 million. Meanwhile Hugo’s sales increased by 1 per cent YoY to €171 million.
Region-wise, Europe, Middle East, and Africa’s (EMEA) sales increased by 1 per cent YoY to €662 million. Sales in Americas remained steady at €228 million and in Asia-Pacific, sales fell by 8 per cent to €110 million.
By distribution channel, sales from brick-and-mortar retail decreased by 4 per cent to €499 million. Brick-and-mortar wholesale grew by 3 per cent YoY to €302 million. Meanwhile, digital sales increased by 6 per cent YoY to €199 million.
Daniel Grieder, chief executive officer of Hugo Boss, said: “In the third quarter, Hugo Boss achieved solid top-line improvements despite the ongoing weak consumer sentiment. This is a clear testament to the power of Boss and Hugo, which we have built in recent years by consistently executing our ‘Claim 5’ strategy.”
Nine-month financial report
Hugo Boss’ sales in the first nine months (9M) of 2024 were €3,058 million, up by a slight margin of 1 per cent YoY, with a currency-adjusted growth of 2 per cent. Cost of sales of the company were €1,178 million, down 1 per cent YoY in 9M 2024. The gross profit of the company reached €1,880 million, up 1 per cent from the prior year’s 9M period. EPS decreased by 25 per cent to €1.88 in this period.
The gross margin in this period remained stable at 61.5 per cent of sales. Operating profit (EBIT) in 9M period decreased by 19 per cent to €235 million, resulting in an EBIT margin of 7.7 per cent (down 190 basis points from 9.6 per cent).
By brand, Boss menswear grew by 1 per cent YoY to €2,355 million and Boss womenswear rose by 3 per cent YoY to €213 million. Hugo’s sales increased by 4 per cent to €490 million.
By region, EMEA’s sales were up by 1 per cent YoY to €1,899 million. Sales in Americas grew by 6 per cent to €697 million. In Asia-Pacific region, sales decreased by 5 per cent to €383 million (currency-adjusted decline of 2 per cent).
By distribution channel, brick-and-mortar retail sales declined by 2 per cent YoY to €1,554 million in 9M 2024. Brick-and-mortar wholesale increased by 5 per cent YoY to €842 million and digital Sale grew by 4 per cent YoY to €583 million.
2024 financial outlook
The company continues to expect sales in 2024 to increase by between +1 per cent and + 4per cent in group currency to a level of around €4.20 billion to €4.35 billion (2023: €4.2 billion), with currencies anticipated to have a slightly negative impact on revenues. The company continues to expect EBIT for full-year 2024 to develop within a range of 15 per cent to +5 per cent, amounting to around €350 million to €430 million (2023: €410 million).
Fibre2Fashion News Desk (SG)