Annual Report 2022

Topics filter


Income statement (in EUR million)



Jan. –
Dec. 2022


Jan. –
Dec. 2021


in %








Cost of sales







Gross profit







In % of sales






0 bp

Operating expenses







In % of sales






100 bp

Thereof selling and marketing expenses







Thereof administration expenses







Operating result (EBIT)







In % of sales






100 bp

Financial result







Earnings before taxes







Income taxes







Net income







Attributable to:







Equity holders of the parent company







Non-controlling interests







Earnings per share (in EUR)1







Income tax rate in %








Basic and diluted earnings per share.

At 61.8%, the gross margin in fiscal year 2022 remained stable compared to the prior-year level (2021: 61.8%) and was thus at the upper-end of the Company’s mid-term target corridor of between 60% and 62% as laid out in “CLAIM 5”. An overall higher share of full-price sales, reflecting a significant uptick in brand momentum following the successful branding refresh, compensated for persistently high levels of freight costs as well as an unfavorable development of foreign exchange rates. Overall, the underlying momentum in the Company’s full-price business was strong throughout the year, with promotional activity at HUGO BOSS being well below the prior-year level across markets. Group Strategy

Development of gross profit and gross margin

20222021Gross profit (in EUR million)Gross margin (in %)+31%2,2561,72161.861.80 bp

Operating expenses increased by 29% in fiscal year 2022, with both selling and distribution expenses as well as administration expenses above the prior-year level. This largely reflects important investments into the business as part of “CLAIM 5” as well as a normalization in rental and payroll cost levels following COVID-related restrictions and corresponding long-lasting temporary store closures in the prior year. As a percentage of sales, however, operating expenses decreased 100 basis points to a level of 52.6% (2021: 53.6%), first and foremost reflecting further efficiency gains in brick-and-mortar retail. Notes to the Consolidated Financial Statements, Notes 2, 3, 9

Development of operating expenses

20222021Operating expenses (in EUR million)Operating expenses (in % of sales)+29%1,4931,92153.652.6(100) bp

Selling and marketing expenses increased by 29% compared to the prior-year period, mainly due to an increase in variable rental expenses, payroll expenses, and fulfillment expenses in the wake of the strong top-line momentum. Besides that, the development is attributable to higher marketing investments, largely reflecting the successful brand campaigns and fashion events of BOSS and HUGO over the course of the year, aimed at driving brand relevance globally. Total marketing expenses grew 41% to EUR 288 million, representing 7.9% of Group sales, thus at the upper end of our target corridor of between 7% and 8% as laid out in “CLAIM 5” (2021: EUR 204 million; 7.3% of sales). Selling expenses for the Group’s brick-and-mortar retail business totaled EUR 805 million in 2022, up 25% compared to the prior year (2021: EUR 645 million). As a percentage of sales, however, selling expenses for the Group’s brick-and-mortar retail business declined by 110 basis points to 22.0% (2021: 23.2%). Overall, as a percentage of sales, selling and marketing expenses decreased by 60 basis points to a level of 42.1% in 2022 (2021: 42.7%). Notes to the Consolidated Financial Statements, Note 2, Group Strategy, “Boost Brands”

Administration expenses increased by 27% in fiscal year 2022. This development is mainly attributable to higher payroll expenses as well as an increase in digital investments, both aimed at supporting the successful execution of “CLAIM 5”. Consequently, general administration expenses increased by 23% to EUR 302 million (2021: EUR 245 million), while research and development expenses incurring in the collection development were up 41% compared to the prior-year level, amounting to EUR 81 million (2021: EUR 57 million). Overall, as a percentage of sales, administration expenses decreased by 40 basis points to 10.5% (2021: 10.8%).

Operating profit (EBIT) increased a strong 47% to EUR 335 million in fiscal year 2022 (2021: EUR 228 million), driven by the strong top-line performance which more than compensated for ongoing brand, product, and digital investments as part of “CLAIM 5”. Consequently, the Group’s EBIT margin increased noticeably, up 100 basis points to 9.2% (2021: 8.2%).

Development of EBIT and EBIT margin

20222021335EBIT (in EUR million)EBIT margin (in%)228+47%8.2+100 bp9.2

At EUR 345 million, depreciation and amortization was slightly above the prior-year level (2021: EUR 339 million). This also includes non-cash impairment charges of EUR 18 million (2021: EUR 32 million), mainly relating to the Company’s store network in Russia, which has been temporarily suspended as of March 2022.

At EUR 50 million, net financial expenses (financial result) in fiscal year 2022 were 61% above the prior-year level (2021: EUR 31 million). The development is mainly attributable to the unfavorable development of foreign exchange rates, first and foremost with regard to the Russian ruble. At 22%, the Group tax rate was well below the prior-year level (2021: 27%), mainly reflecting positive one-time effects in connection with lower than anticipated back tax payments and the revaluation of deferred tax assets. Accordingly, the Group’s net income for fiscal year 2022 amounted to EUR 222 million, up 54% against the prior-year level (2021: EUR 144 million). Notes to the Consolidated Financial Statements, Note 4 and 5