Outlook and Targets

"CLAIM 5" Strategy
At the very heart of “CLAIM 5” is the Company's aim to substantially increase brand relevance, drive superior top-line growth, and thus strongly increase market shares of BOSS and HUGO.

Outlook 2024

  Results 2023 Outlook 2024
Group sales

EUR 4,197 million

Increase within a range of
1% to 4% to a level of
between EUR 4.20 billion and EUR 4.35 billion

Operating result (EBIT)

EUR 410 million

Develop within a range of
minus 15% to plus 5% to a level of
between EUR 350 million and EUR 430 million

Trade net working capital as a percentage of sales

20.8%

Improvement to a level approaching 20%

Capital expenditure

EUR 298 million

Around EUR 300 million

 Further information as well as the underlying assumptions can be found here

Financial Ambition

Driven by the powerful and rigorous strategy execution, HUGO BOSS raised its mid-term top- and bottomline ambition in June 2023, two years after its introduction. After having exceeded our previous mid-term sales target of EUR 4 billion already in fiscal year 2023, HUGO BOSS aims to generate revenues of around EUR 5 billion by 2025. This represents a strong CAGR of 10% compared to the base year 2019, thus well above the anticipated industry growth. At the same time, since providing the “CLAIM 5” update, the macroeconomic and geopolitical uncertainties have increased noticeably. Against this backdrop, HUGO BOSS might reach its sales ambition with a slight delay

The top-line target is coupled with the ambition of achieving noticeable improvements in EBIT margin. The latter is targeted to increase to a level of at least 12%. Besides an increased focus on achieving additional efficiency improvements, this also reflects the Company’s gross margin projection, which is anticipated to range between 62% and 64%. The Company’s gross margin is expected to particularly benefit from the ongoing strong brand momentum of BOSS and HUGO as well as additional efficiency gains to be realized in operations. Overall, this will more than compensate for further investments into the Company's products, brands, digital capabilities, logistics, and distribution networks as part of “CLAIM 5.”

In light of the anticipated improvements in sales and profitability, HUGO BOSS has the ambition to generate a cumulative free cash flow (including the effects of IFRS 16) of around EUR 2.5 billion between 2021 and 2025. Fully in line with its capital allocation framework, the majority of free cash flow will be either reinvested into the business or distributed to shareholders through regular dividend payments, with the Company’s payout ratio to remain in a range between 30% and 50% of net income attributable to shareholders until 2025.

LEARN MORE ON OUR STRATEGY

Further information

Reports & Downloads

All publications by HUGO BOSS AG can be found here, including financial reports and financial releases.

"CLAIM 5"-Strategy

At the very heart of “CLAIM 5” is the Company's aim to substantially increase brand relevance, drive superior top-line growth, and thus strongly increase market shares of BOSS and HUGO.

Investor Day

In June 2023, HUGO BOSS presented an update on its growth strategy "CLAIM 5" at an investor day. Related documents can be found on the following page.