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Hugo Boss falls as profit at UK arm slashed

Published 09/23/2024, 05:51 AM
© Reuters.
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Investing.com -- Shares of Hugo Boss (ETR:BOSSn) were down on Monday after the company saw its UK arms profits nearly halved in 2023. Pre-tax profits dropped to £16.8 million, down from £30.4 million in 2022, according to recently submitted financial statements.

At 5:50 a.m. (0950 GMT) Hugo Boss was trading 4.4% lower at €36.130.

Turnover for the year also declined, falling from £402.4 million in 2022 to £391.6 million in 2023. The wholesale division reported a drop, with turnover falling from £143.7 million to £131.5 million. 

Retail sales slipped slightly from £206.9 million to £204.2 million, while online revenue showed a marginal increase, moving from £55.7 million to £55.9 million.

Hugo Boss UK's operating profit fell 39% to £19.7 million, while overall profit for the year was cut by half, landing at £12.3 million.

In the same period, the workforce expanded, with employee numbers rising from 1,146 to 1,319. Despite the profit drop, the company issued a higher dividend of £26.9 million, up from £16.3 million in 2022.

The UK results come as the broader Hugo Boss group posted record global sales, with a currency-adjusted revenue increase of 18%, reaching €4.2 billion in 2023. 

Earnings before income tax climbed by 22%, reaching €410 million.

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