Sales and earnings development of the business segments

EMEA

Sales in the EMEA region (Europe, Middle East, and Africa) were up 32% currency-adjusted in fiscal year 2022. This development was driven by the successful execution of “CLAIM 5” that strongly propelled brand momentum for both BOSS and HUGO, thereby fueling robust consumer demand throughout the year and enabling HUGO BOSS to further gain market share. In addition, the return of tourism provided further stimulus to the overall sentiment. From a channel perspective, momentum in EMEA was broad-based, with both the Group’s brick-and-mortar retail business and brick-and-mortar wholesale recording strong double-digit growth. Also the Group’s digital business continued its double-digit growth trajectory despite a particularly high comparison base.

All of the region’s key markets recorded strong double-digit growth in fiscal year 2022. In Germany, sales increased by 30% to EUR 477 million with broad-based improvements across all channels (2021: EUR 366 million). Currency-adjusted revenues in the UK were up 26%, driven by strong double-digit growth in brick-and-mortar retail. In Group currency, sales amounted to EUR 491 million and were hence 27% above the prior-year level (2021: EUR 386 million). In France, sales amounted to EUR 221 million, up 28% compared to fiscal year 2021 (2021: EUR 173 million). This performance was mainly due to strong improvements in both brick-and-mortar retail and wholesale. Momentum was also strong in growth markets such as the Middle East, as reflected by significant double-digit revenue increases in fiscal year 2022. While the Company also posted strong double-digit growth in key markets across Eastern Europe, the fact that HUGO BOSS has temporarily suspended its own retail and online business in Russia since the beginning of March 2022 in light of the war in Ukraine, weighed on the market’s overall performance in the past fiscal year.

In light of the strong top-line momentum, segment profit in the EMEA region grew 58% to EUR 548 million (2021: EUR 347 million) in fiscal year 2022, thereby more than compensating for an increase in operating expenses. Consequently, the region’s EBIT margin improved by 390 basis points to 23.8% (2021: 19.9%). Notes to the Consolidated Financial Statements, Note 24

Americas

In the Americas, currency-adjusted revenues increased by 29% in fiscal year 2022. Also in this region, growth was driven by robust consumer sentiment across all markets fueled by the rigorous execution of “CLAIM 5”. In particular, HUGO BOSS made significant progress in expanding its casualwear offerings at the point of sale and strengthening its 24/7 lifestyle image, especially in the important U.S. market. Also from a channel perspective, regional growth was broad-based, as reflected by strong double-digit revenue improvements in brick-and-mortar retail, brick-and-mortar wholesale as well as the Group’s digital business.

In the United States, by far the region’s largest market for HUGO BOSS, revenues increased 23% currency-adjusted, driven by robust double-digit growth across all consumer touchpoints. In Group currency, sales were up 38%, amounting to EUR 528 million (2021: EUR 382 million). Also in Canada and Latin America, momentum was equally strong, with currency-adjusted revenues up 46% and 43%, respectively, also reflecting broad-based growth across all channels.

Driven by the strong top-line development, segment profit in the Americas more than doubled to EUR 123 million in fiscal year 2022 (2021: EUR 61 million). This corresponds to a strong EBIT margin increase of 430 basis points to a level of 15.6% (2021: 11.3%). Notes to the Consolidated Financial Statements, Note 24

Asia/Pacific

Revenues in Asia/Pacific increased by 6% currency-adjusted year over year. Significant double-digit improvements in South East Asia & Pacific were partly offset by double-digit sales declines in mainland China. While HUGO BOSS recorded a promising start to the year also in this market, COVID-19 related restrictions, including long-lasting temporary store closures and reduced opening hours, weighed on consumer sentiment and store traffic throughout much of fiscal year 2022. Consequently, on average, around 15% of the Group’s own stores in mainland China were affected by temporary closures in 2022. From a channel perspective, the Company’s digital business in Asia/Pacific performed particularly well in 2022, up strong double-digits compared to the prior year. While the Group’s brick-and-mortar retail business recorded a mid-single-digit increase, revenues in brick-and-mortar wholesale remained below the prior-year level, largely reflecting sales declines in the Company’s travel retail business in mainland China.

In light of the COVID-19 related implications throughout much of 2022, currency-adjusted revenues in mainland China remained 23% below the prior-year level. In Group currency, sales decreased by 16% to EUR 202 million (2021: EUR 242 million). In contrast, South East Asia & Pacific – which also includes markets such as Australia and Japan – recorded a particularly strong performance posting currency-adjusted growth of 50% in fiscal year 2022.

Segment profit in the Asia/Pacific region remained on the prior-year level at EUR 74 million (2021: EUR 74 million), despite long-lasting pandemic-related restrictions in mainland China in fiscal year 2022. The corresponding EBIT margin, however, decreased by 160 basis points to 15.8% (2021: 17.4%). Notes to the Consolidated Financial Statements, Note 24

Licenses

Sales in the license business increased by 19% currency-adjusted compared to the prior year. This performance was fueled by strong double-digit growth in the important fragrance business as well as robust improvements across further product groups, including eyewear and watches. Earnings Development, Sales by Distribution Channel

At EUR 77 million, license segment profit increased 23% compared to the prior year (2021: EUR 63 million). Notes to the Consolidated Financial Statements, Note 24