Thanks to effective business operations, operating results (EBIT) also recorded a significant increase. Overall, EBIT amounts to €228 million in 2021, well above the company’s growth of €175 million to €200 million – representing an EBIT margin of 8.2%. This development was also supported by improvements in gross margin as well as operating leverage, the company said in a press release.
“At Hugo Boss, we are deeply concerned by the terrible situation in Ukraine. Our deepest sympathies and thoughts are with the millions of people affected by war and suffering from this humanitarian crisis,” Daniel Grieder, CEO of Hugo Boss. “To help those in need, we support the German Red Cross and other organizations, in solidarity with people calling for peace. We will continue to monitor the situation very closely and adjust measures and financial support accordingly.”
Hugo Boss net sales amount to €2,786 million in 2021 from €1,946 million in 2020, representing a strong currency-adjusted increase of 43 percent year-over-year, well above the company’s guidance on currency-adjusted sales growth is about 40 percent. As a result, currency-adjusted sales have effectively returned to pre-pandemic levels.
As a result of substantial end-to-end growth as well as notable improvements in commercial net working capital, Hugo Boss has generated the strongest free cash flow in the company’s history. At 559 million euros, free cash flow in 2021 has tripled from the previous year. As a result, Hugo Boss’s net financial position at the end of fiscal year 2021 totaled 167 million euros, representing Hugo Boss’ strongest net financial position to date.
“From the very beginning, our growth strategy has driven brand momentum globally. The very successful rebranding and ongoing investments will drive further relevance for Boss and Hugo in the current year. We have everything it takes to hit record sales in 2022. As a team, we’re going a step further towards our goal of becoming one of the top 100 global brands,” said Grieder. explain.
By 2022, the company is confident of achieving dramatic end-to-end improvements. At the same time, the company faces ongoing uncertainties related to the further developments of the COVID-19 pandemic. In addition, it is difficult to assess the impact of a further escalation of war in Ukraine on economic growth and the region as a whole.
In 2022, group sales are expected to grow by 10 to 15 percent to a new record of €3.1 billion to €3.2 billion, with all regions and both brands expected to contribute to this development. In addition, Hugo Boss forecasts that it will increase its EBIT in 2022 in the range of 10 to 25% to an amount between 250 million euros and 285 million euros. The release adds.
Fiber2 fashion news desk (RR)
