Q3 2024 Hugo Boss AG Earnings Call Transcript
Key Points
- Hugo Boss AG (BOSSY) reported a 1% increase in group sales for Q3, contributing to a 2% year-on-year growth over the first nine months.
- The company successfully improved cost efficiency, limiting operating expenses growth to 1% in Q3, a significant improvement from the 9% increase in Q2.
- Hugo Boss AG (BOSSY) achieved a 6% growth in its digital business, driven by strong performance with digital partners, particularly in Europe.
- The company's marketing initiatives, including a successful campaign featuring David Beckham, more than doubled social media engagement compared to last year.
- Hugo Boss AG (BOSSY) maintained a robust wholesale performance, with sales up 4% in Q3, marking the 14th consecutive quarter of revenue growth in physical wholesale.
- Sales in the Asia Pacific region declined by 7% in Q3, primarily due to subdued consumer confidence in China.
- The company's gross margin declined by 50 basis points in Q3, impacted by higher freight rates, a competitive promotional landscape, and adverse currency effects.
- Brick-and-mortar retail sales were 3% below the prior year, affected by traffic declines in key markets such as the UK and China.
- Net income after minorities decreased by 13% compared to the prior year, reflecting a modest increase in net financial expenses.
- Hugo Boss AG (BOSSY) faces ongoing macroeconomic uncertainties and weak consumer sentiment, particularly impacting its performance in China.
Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the HUGO BOSS Q3 2024 Results Call. (Operator Instructions) And now I would like to turn the conference over to Christian Stohr, Vice President of Investor Relations. Please go ahead.
Good morning, ladies and gentlemen, and welcome to our third quarter 2024 results presentation. Hosting our conference call today is Yves Muller, CFO and COO of HUGO BOSS.
Before I hand over to Yves, allow me to remind you that all revenue-related growth rates will be discussed on a currency adjusted basis unless otherwise specified. (Operator Instructions). And with that, let's get started, and over to you, Yves.
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Thank you, Christian, and a warm welcome from Metzingen ladies and gentlemen. As you could see from our press release this morning,
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