Sales performance

In fiscal year 2019, HUGO BOSS achieved Group sales of EUR 2,884 million, up 3% versus the prior year level (2018: EUR 2,796 million). Currency effects had a slightly positive impact on Group sales in 2019. Adjusted for currency effects, HUGO BOSS recorded a 2% increase in sales as compared to the prior year.

Sales by region

Europe, including the Middle East and Africa, benefited from sales growth in many key markets, including Great Britain and France. In the Americas, the difficult market environment in the United States and Canada weighed on the sales performance in 2019. Sales in Asia/Pacific grew at an above-average rate, primarily due to higher sales in China. In mainland China, currency-adjusted sales increased at a double-digit rate. Earnings Development, Sales and Earnings Development of the Business Segments

Sales by distribution channel

Currency-adjusted sales in the Group’s own retail business grew 4% in fiscal year 2019. In particular, the online business achieved significant double-digit growth and increased by 35% to EUR 151 million (2018: EUR 110 million). This development was driven by positive effects resulting from the intensification of online partnerships in the concession model over the course of the year. While sales generated through freestanding stores and shop-in-shops (directly operated stores, DOS) remained at the prior year level, the outlet business developed positively. Overall, the share of the own retail business in Group sales increased from 63% to 65% in fiscal year 2019. On a comp store basis (i.e. taking into account all retail spaces opened or taken over before December 31, 2017 and excluding stores renovated in 2018 or 2019), currency-adjusted sales from the own retail business were 3% above the prior year level.

In the wholesale channel, the Group recorded a decline in sales in 2019, primarily as a result of the persistently difficult market environment in the United States and Germany. As expected, the intensification of online partnerships in the concession model also had a negative impact on wholesale sales. As a result, the share of the wholesale business in Group sales fell in 2019 from 34% to 32%.

Sales in the license business rose significantly in fiscal year 2019. This was the result of growth in all product groups, in particular fragrances and eyewear. At 3%, the share of license business in Group sales remained on the prior year level.

Sales by brand

Both brands – BOSS and HUGO – recorded sales growth in fiscal year 2019. In the case of HUGO, the growth was above average thanks to a significant double-digit sales increases in casualwear. This development reflects the increasing relevance of HUGO in the contemporary fashion segment. BOSS benefited from low single-digit sales growth in both businesswear and casualwear. Sales generated with athleisurewear were on the prior year level. Group Strategy, Consistent Execution of a Two-Brand Strategy

Sales by gender

In 2019, menswear mainly benefited from sales growth in casualwear. Sales in businesswear remained at the prior year level. The slight decline in sales in womenswear is mainly due to lower sales in businesswear, and is primarily attributable to the reduction of retail space of the BOSS brand in freestanding stores. Growth in casualwear only partially compensated for this.

Network of own retail stores

In fiscal year 2019, the number of the Group’s own freestanding retail stores increased by a net figure of 12 to 431 (2018: 419). The opening of 31 new BOSS stores, mainly in Asia and Europe, contrasted with the closures of 22 stores with expiring leases. In fiscal year 2019, five HUGO stores with their own furniture concept were opened in international metropolises like Singapore and Tokyo. This stood in contrast to two closures.

Including shop-in-shops and outlets, the total number of retail stores operated by HUGO BOSS globally increased slightly as of December 31, 2019 to 1,113 (2018: 1,092).

The total selling space of the Group’s own retail business increased 1% and amounted to around 156,000 sqm at the end of the year (December 31, 2018: 154,500 sqm). A moderate expansion of selling space in Asia and Europe stood in contrast to a slight space reduction in the Americas. Retail sales productivity in the brick-and-mortar retail business increased 4% to around EUR 11,100 per sqm in fiscal year 2019 (2018: EUR 10,700 per sqm).