Sales performance

In the wake of the successful execution of “CLAIM 5”, Group sales increased 27% currency-adjusted in 2022. In Group currency, sales grew by 31% to a record level of EUR 3,651 million, thus exceeding the EUR 3 billion threshold for the first time in the history of HUGO BOSS (2021: EUR 2,786 million). Growth was broad-based with both our brands, BOSS and HUGO, as well as all distribution channels recording significant double-digit growth. From a regional perspective, momentum was particularly strong in EMEA and the Americas, while Asia/Pacific was impacted by ongoing COVID-related implications in China. Overall, currency-adjusted Group revenues strongly exceeded pre-pandemic levels by 26% (2019: EUR 2,884 million).

Sales by brand

Across brands, both BOSS Menswear and BOSS Womenswear as well as HUGO recorded significant double-digit sales improvements in fiscal year 2022. The strong performance was driven by the comprehensive branding refresh as part of “CLAIM 5”. In addition to the new “look and feel” of our BOSS and HUGO collections, various initiatives, including record-breaking marketing campaigns, exciting brand events, and inspiring collaborations, significantly spurred brand power particularly among younger consumers such as Millennials and Gen Z. These initiatives resulted in strong sell-through rates, enabling both brands to successfully expand market share globally. Consequently, currency-adjusted sales for BOSS Menswear and BOSS Womenswear grew 27% and 21%, respectively, while also HUGO posted strong growth of 27% in fiscal year 2022. Group Strategy

Sales by region

All regions contributed to the strong top-line performance in fiscal year 2022. Momentum was particularly strong in EMEA – which includes Europe, the Middle East, and Africa – and in the Americas, fueled in particular by robust consumer sentiment and the successful execution of “CLAIM 5”. EMEA posted double-digit improvements with currency-adjusted sales up 32% year over year. Growth was spurred by double-digit revenue increases across key markets including the UK, France, and Germany, as well as a particularly strong performance in growth markets such as the Middle East. In the Americas, currency-adjusted revenues were up 29% with all markets contributing. In the important U.S. market, where HUGO BOSS successfully fostered its 24/7 brand image, revenues also grew at a strong double-digit rate. Sales in Asia/Pacific increased by 6% currency-adjusted, as strong double-digit improvements in South East Asia & Pacific were partly offset by sales declines in mainland China. The latter largely reflects the implications related to the COVID-19 pandemic, caused by the prevailing zero-COVID policy, including temporary store closures during much of fiscal year 2022. Earnings Development, Sales and Earnings Development of the Business Segments

Sales by distribution channel

Also from a channel perspective, growth in fiscal year 2022 was broad-based with double-digit revenue improvements across all consumer touchpoints. Currency-adjusted sales in the Group’s brick-and-mortar retail business (including freestanding stores, shop-in-shops, and outlets) came in 29% above the prior-year level. This development was supported by robust store productivity improvements, mainly reflecting the successful execution of strategic initiatives to further optimize our global store network including the rollout of new store concepts for BOSS and HUGO.

In brick-and-mortar wholesale, currency-adjusted sales grew 33% in 2022. This performance was fueled by wholesales partners’ strong demand for both brands’ collections fully reflecting the branding refresh. In doing so, BOSS and HUGO were able to strongly improve visibility and penetration at key wholesale partners.

The Group’s digital business (including the Company’s digital flagship hugoboss.com as well as digital revenues generated with partners) also recorded double-digit growth. Despite being up against a particularly strong comparison base from the prior-year period, currency-adjusted sales increased by 15% reflecting both a double-digit revenue increase at hugoboss.com as well as strong improvements in digital revenues generated with partners. Performance of hugoboss.com was supported by its successful relaunch as part of the branding refresh implemented in January 2022. Overall, total digital sales thus added up to 18% of Group sales in fiscal 2022.

Sales in the license business increased by 19% currency-adjusted, reflecting robust improvements across key product groups, including fragrances, eyewear, and watches.

Network of own retail stores

In fiscal year 2022, the number of the Group’s own freestanding retail stores increased to 470 (2021: 451). A total of 33 new BOSS stores, mainly in China, the UK, as well as the United Arab Emirates, as well as five HUGO stores were opened during the year. On the other hand, 19 stores with expiring leases were closed globally, also reflecting some relocations within the same metropolitan area.

Including shop-in-shops and outlets, the total number of own retail points of sale operated by HUGO BOSS worldwide increased to 1,316 as of December 31, 2022 (2021: 1,228). Besides the additional freestanding retail stores, this mainly reflects the expansion of the Company’s shop-in-shop network to strengthen the brands’ presence with key retail partners, particularly in the U.S. market.

The total selling space of the Group’s own retail business increased by 5%, totaling around 177,000 sqm at the end of the year (December 31, 2021: around 168,000 sqm). Consequently, brick-and-mortar sales productivity increased by a strong 29% to a level of around EUR 11,900 per square meter (2021: around EUR 9,200 per square meter). This performance first and foremost reflects the strong top-line performance in fiscal year 2022 as well as the successful execution of strategic initiatives to further optimize the global store network, including right-sizings and relocations.