BERLIN – Hugo Boss’ expensive brand refresh is working, the company announced on Thursday, as it released financial results for 2022.
Sales revenues at Hugo Boss grew 27 percent in currency adjusted terms to 3.65 billion euros. It is the first time the German marquee brand has broken the 3 billion barrier.
In the fourth quarter, revenues rose 15 percent to 1.07 billion euros.
Thanks to its “rigorous execution, we made 2022 a record year for our company, with broad-based momentum across brands, regions and consumer touchpoints,” chief executive officer Daniel Grieder said in a statement. “Most importantly our bold branding refresh fueled brand power.”
Hugo Boss reported EBIT bounded 47 percent in 2022 to 335 million euros. This was despite significant spending on the brand refresh. Over the course of the year, marketing costs rose 41 percent and operating expenses 29 percent. But this also led to more full-price sales and less discounting, the company explained.
Fourth-quarter sales in Europe grew 18 percent in currency adjusted terms to 647 million euros. Over the whole year, revenues from its biggest territory rose 32 percent to 2.3 billion euros.
Revenues in Asia-Pacific region, impacted by pandemic-related lockdowns in Mainland China, fell 3 percent in the fourth quarter. For the full year, revenues in the region rose 6 percent thanks to double-digit increases in parts of the territory other than China, Boss noted. In the Americas, revenues rose 29 percent over the full year.
The Boss formal line still makes up the bulk of the company’s sales and grew 27 percent, currency adjusted, to hit 2.87 billion euros in 2022. Boss womenswear was up 21 percent to 239 million euros. Meanwhile, the more casual Hugo collections grew 27 percent year-on-year and brought the company 545 million euros in revenues.
Despite the positive results in 2022, Hugo Boss’ guidance for the coming year was cautious. During 2022, the company had raised guidance twice but acknowledged uncertain global economic conditions would be an issue in 2023. It expects sales revenues to slow, increasing at only mid-single-digit rates in 2023.