Retail in Asia

In Sectors

Hugo Boss defies luxury slowdown with 13 percent sales uptick, APAC revenues rally

Hugo Boss recorded a 13 percent uptick in sales for the fourth quarter to EUR 1.177 billion (USD 1.28 billion), defying the global luxury slowdown facing other rival European firms, thanks to sales growth across all brands, channels, and regions.

SEE ALSO: Hugo Boss APAC Q3 sales up 21 percent despite slowdown in growth

The German luxury house said currency-adjusted revenues in EMEA came in 7 percent above the prior-year level, against a particularly strong comparison base, reflecting solid sales increases in key markets such as Germany and France, as well as double-digit improvements in emerging markets. In the Americas, Hugo Boss maintained its “stellar momentum” from previous quarters, with sales increasing 18 percent currency-adjusted in the three-month period, supported by ongoing double-digit growth in the U.S. market.

However, the star performer was the brand’s Asia-Pacific region with revenues surging by 33 percent currency-adjusted, reflecting strong double-digit sales improvements in both China and Southeast Asia and the Pacific.

By brand, both Boss and Hugo brands continued their double-digit growth trajectories. In the three-month period, currency-adjusted sales for Boss menswear were up 13 percent year over year, while revenues for Boss womenswear and for Hugo expanded by 14 percent, respectively.

By channel, total digital revenues were up 26 percent, while physical store sales were up 12 percent, said the company.

As a result of the strong fourth quarter, Hugo Boss said it also achieved its full-year 2023 sales and earnings targets, which had been revised upwards twice during the year. On a preliminary, non-audited basis, the company clocked record sales of EUR 4.197 billion in 2023, up 15 percent on 2022.

“We ended 2023 on a high note, making it a record year for Hugo Boss,” said Daniel Grieder, chief executive officer of Hugo Boss.

“The double-digit top- and bottom-line improvements in the important final quarter are all the more remarkable considering the current challenging global market environment. With our strong brand momentum and the ongoing successful execution of our ‘Claim 5’ strategy, we have laid a robust foundation for continuing our market-share-winning trajectory and making further progress in becoming one of the top 100 global brands.”

The update comes just days after rival luxury company Burberry posted a 7 percent decline in third-quarter revenues to GBP 706 million (USD 892 billion) at reported exchange rates, forcing the London-based company to lower its full-year outlook.