Hugo Boss (BOSS) Q3 2024 earnings summary

Executive summary

• Achieved solid Q3 2024 performance with 1% group sales growth to €1,029 million, despite weak consumer sentiment and macroeconomic headwinds.

• Cost efficiency measures and brand strength supported bottom-line resilience.

• Growth in the Americas (+4%) and EMEA (+1%) offset a 7% decline in Asia/Pacific, mainly due to weak demand in China.

• Digital (+6%) and wholesale (+4%) channels showed robust growth, while brick-and-mortar retail declined 3%.

• Free cash flow improved to €40 million in Q3, supported by lower trade net working capital.

Financial highlights

• Group sales up 1% in Q3 and 2% year-over-year for the first nine months, reaching €3,058 million.

• EBIT declined 7% to €95 million; EBIT margin at 9.3%, down 80 basis points year-over-year.

• Net income attributable to shareholders was €55 million (EPS €0.79), down 13% year-over-year.

• Gross margin declined to 60.2% in Q3, down 50 basis points year-over-year.

• Capital expenditure rose 28% to €89 million in Q3, mainly for logistics and digitalization.

Outlook and guidance

• Full-year 2024 sales expected to grow 1–4% in group currency, reaching €4.20–€4.35 billion.

• EBIT guidance for 2024 set at €350–€430 million, representing a range of -15% to +5% year-over-year.

• Net income is expected to move in line with EBIT.

• Trade net working capital as a percentage of sales is forecast to improve slightly, approaching 20%.

• Capital expenditure for 2024 is projected at around €300 million.