Denim, Casual Pushes Hugo Boss Q1 Revenues Up 6 Percent

With a lift from denim and casual styles, Hugo Boss reported sales in the first quarter grew 6 percent, in currency-adjusted terms, to 1.01 billion euros.

“I am pleased that we delivered further sales and earnings improvements,” the company’s chief executive officer Daniel Grieder said in a statement.

Boss, the more formal offering that has been the backbone of its business, grew 5 percent to 777 million euros. Boss womenswear grew 7 percent, currency neutral, to hit 70 million euros.

Sales at Hugo, the more casual and youth oriented line, increased by 9 percent to 167 million euros. The company pointed to the successful launch of its denim collection, Hugo Blue, as contributing to the number.

Revenues in Europe, the Middle East and Africa increased 5 percent, while North America gained 11 percent.

“This first and foremost reflects double-digit sales increases in the important U.S. market, with broad-based growth across all consumer touch points,” the company said, touting robust sales in physical stores.

In Asia-Pacific region, Hugo Boss sales were up 2 percent in currency neutral terms . Although the company did well in most parts of the territory, demand in China remained muted and was below last year’s levels over the same period.  

Operating expenses increased over the first quarter, reflecting the increased costs of sales and marketing, but fell as a percentage of sales. Earnings before interest and taxes rose slightly, going from 65 million in the first quarter of last year to 69 million this year.

The German menswear specialist confirmed previous guidance and says it expects sales to increase between 3 and 6 percent over 2024, to bring in somewhere between 4.3 billion and 4.45 billion euros.

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