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

Sales by region (in EUR million)

 

 

2019

 

In % of sales

 

2018

 

In % of sales

 

Change in %

 

Currency-adjusted change in %

1

Including Middle East and Africa.

Europe1

 

1,803

 

63

 

1,736

 

62

 

4

 

4

Americas

 

560

 

19

 

574

 

20

 

(2)

 

(7)

Asia/Pacific

 

438

 

15

 

410

 

15

 

7

 

5

Licenses

 

84

 

3

 

76

 

3

 

10

 

10

Total

 

2,884

 

100

 

2,796

 

100

 

3

 

2

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

Sales by distribution channel (in EUR million)

 

 

2019

 

In % of sales

 

2018

 

In % of sales

 

Change in %

 

Currency-adjusted change in %

1

3 % on a comp store basis.

Own retail business

 

1,869

 

65

 

1,768

 

63

 

6

 

41

Directly operated stores

 

1,110

 

38

 

1,096

 

39

 

1

 

0

Outlet

 

608

 

21

 

562

 

20

 

8

 

6

Online

 

151

 

5

 

110

 

4

 

37

 

35

Wholesale

 

931

 

32

 

952

 

34

 

(2)

 

(3)

Licenses

 

84

 

3

 

76

 

3

 

10

 

10

Total

 

2,884

 

100

 

2,796

 

100

 

3

 

2

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

Sales by brand (in EUR million)

 

 

2019

 

In % of sales

 

2018

 

In % of sales

 

Change in %

 

Currency-adjusted change in %

BOSS

 

2,488

 

86

 

2,422

 

87

 

3

 

1

HUGO

 

396

 

14

 

374

 

13

 

6

 

5

Total

 

2,884

 

100

 

2,796

 

100

 

3

 

2

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

Sales by gender (in EUR million)

 

 

2019

 

In % of sales

 

2018

 

In % of sales

 

Change in %

 

Currency-adjusted change in %

Menswear

 

2,609

 

90

 

2,517

 

90

 

4

 

2

Womenswear

 

275

 

10

 

279

 

10

 

(1)

 

(2)

Total

 

2,884

 

100

 

2,796

 

100

 

3

 

2

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

Number of Group´s own freestanding retail stores (graphic)

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.

Number of own retail stores by region

1

The prior year’s figures were adjusted retrospectively as of December 31, 2018. As part of a redefinition of the criteria for differentiating freestanding stores and shop-in-shops, a number of points of sale in the Asia/Pacific region that were previously designated as freestanding stores were reclassified as shop-in-shops. In addition, in the course of the two brand strategy, individual points of sale of the BOSS brand within certain department stores were combined numerically into one shop-in-shop, mainly in Europe and the Americas. Both measures have no impact on the Group’s total selling space.

2019

 

Freestanding stores

 

Shop-in-shops

 

Outlets

 

Total

Europe

 

203

 

311

 

70

 

584

Americas

 

94

 

84

 

50

 

228

Asia/Pacific

 

134

 

109

 

58

 

301

Total

 

431

 

504

 

178

 

1,113

 

 

 

 

 

 

 

 

 

20181

 

 

 

 

 

 

 

 

Europe

 

200

 

303

 

67

 

570

Americas

 

89

 

85

 

52

 

226

Asia/Pacific

 

130

 

112

 

54

 

296

Total

 

419

 

500

 

173

 

1,092

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).

Total selling space (bar chart)

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).