Hugo Boss profits drop to £12.3m in FY23
The brand also opened two new Boss outlet stores in Clarks Village and Wembley and three new Hugo stores in York, Ashford and Cannock
Hugo Boss has reported a 50% decline in profits to £12.3m and a 39% decrease in operating profit to £19.7m for the year ended 31 December 2023.
Its turnover also decreased by 3% during the year to £392m. Retail sales decreased from £206.9m to £204.2m, while wholesale turnover dropped from £143.7m to £131.5m. However, its e-commerce revenue increased from £55.7m to £55.9m.
The group attributed the decline in profit and operating profit to the significant investments made during the year to achieve its Claim 5 strategy targets, which is the ‘Organise for Growth’ pillar of the strategy.
Under this strategy, the group has invested in a new distribution centre in Biggleswade, representing a shift in the operational model to allow the company receive direct deliveries from suppliers as opposed to the previous Central Distribution Centre model.
Additionally, it has also invested in the elevation of its store portfolio with the renovation and reopening of its Regent Street Boss flagship store. The brand also opened two new Boss outlet stores in Clarks Village and Wembley and three new Hugo stores in York, Ashford and Cannock.
The opening of the new stores resulted in a 15% increase in employee numbers during the year.
Looking ahead, the company continues to explore opportunities for new retail stores in markets with its desired demographic, invest in its portfolio, focus on key performance indicators to drive productivity and maximise profit opportunities within its distribution channels.
