Hugo Boss Announces Preliminary Q2 Results and Updates 2024 Outlook

Metzingen, July 15, 2024 – Hugo Boss has updated its financial outlook for the full year 2024 due to persistent macroeconomic and geopolitical challenges. These factors have led to a further industry slowdown, impacting sales and profit figures in the second quarter. Key markets such as the UK and China remain particularly challenging.

Preliminary results show that the Group's currency-adjusted sales for Q2 fell by 1% year-on-year to EUR 1,015 million. The operating profit (EBIT) also dropped to EUR 70 million from EUR 121 million in Q2 2023. Increased marketing expenses and higher retail costs contributed to this decline despite an improved gross margin.

Despite these challenges, Hugo Boss improved its cash position, with free cash flow reaching EUR 143 million in the second quarter, mainly due to optimized inventory levels. Inventories as a percentage of sales decreased by 340 basis points year-over-year.

In light of these developments, Hugo Boss has adjusted its full-year 2024 financial outlook. The company now expects a more modest increase in Group sales of 1% to 4%, and EBIT is predicted to range between a decline of 15% to an increase of 5%. The company will provide a full set of Q2 results on August 1, 2024.