Hugo Boss Shares Drop as UK Profit Plummets

Shares of Hugo Boss experienced a decline on Monday following the announcement of significantly reduced profits for its UK operations in 2023. Pre-tax profits fell to £16.8 million, a sharp drop from £30.4 million recorded in 2022, as revealed in recently filed financial statements.

As of 5:50 a.m. (0950 GMT), Hugo Boss shares were down 4.4%, trading at €36.130.

The company’s turnover for the year also decreased, from £402.4 million in 2022 to £391.6 million in 2023. The wholesale segment saw a reduction in turnover, declining from £143.7 million to £131.5 million.

Retail sales experienced a slight decrease, dropping from £206.9 million to £204.2 million, while online revenue saw a marginal gain, increasing from £55.7 million to £55.9 million.

Hugo Boss UK’s operating profit fell by 39% to £19.7 million, and the overall profit for the year was halved, totaling £12.3 million.

During the same period, the workforce grew, with the number of employees rising from 1,146 to 1,319. In spite of the decline in profits, the company declared a higher dividend of £26.9 million, up from £16.3 million in 2022.

These results from the UK come as the broader Hugo Boss group reported record global sales, achieving a currency-adjusted revenue increase of 18%, which amounted to €4.2 billion in 2023. Earnings before income tax rose by 22%, reaching €410 million.