Sales and Earnings Development of the Business Segments

EMEA

Sales in the EMEA region (Europe, Middle East, and Africa) were up 3% currency-adjusted in fiscal year 2024. From a channel perspective, this performance was driven by an increase in both brick-and-mortar wholesale and in the Group’s digital business, which more than compensated for a slight decline in brick-and-mortar retail, reflecting lower store traffic.

The performance in EMEA varied across markets. While Germany posted solid revenue improvements, sales in France and the UK remained below the prior-year level, reflecting overall subdued consumer sentiment. On the other hand, momentum in emerging markets, including Eastern Europe and the Middle East, remained strong throughout 2024, as reflected by double-digit improvements compared to the prior year.

At EUR 593 million, segment earnings in EMEA came in 1% above the prior-year level (2023: EUR 586 million). EBIT margin amounted to a level of 22.6% (2023: 22.9%), as sales and gross margin improvements were more than offset by higher operating expenses. The latter mainly reflects higher fulfilment expenses as well as an increase in brick-and-mortar retail expenses. Notes to the Consolidated Financial Statements, Note 24

Americas

In the Americas, HUGO BOSS recorded currency-adjusted revenue growth of 8% in 2024. From a channel perspective, growth was broad-based as reflected by revenue improvements in brick-and-mortar retail, brick-and-mortar wholesale, and our digital business. The double-digit increase in brick-and-mortar wholesale emphasizes the improved visibility of BOSS and HUGO at key department stores, particularly in the important U.S. market.

All key markets contributed to growth in fiscal year 2024. In the United States, the biggest single market for HUGO BOSS, sales increased at a high-single-digit percentage rate, driven by revenue improvements across all consumer touchpoints. This performance reflects our brands’ successful 24/7 lifestyle positioning, which kept fueling momentum throughout 2024. While sales in Canada were also up year over year, HUGO BOSS continued to record particularly strong momentum in Latin America as reflected by double-digit growth.

Segment earnings in the Americas were down 36% to EUR 100 million in fiscal year 2024 (2023: EUR 157 million), corresponding to an EBIT margin of 9.8% (2023: 16.4%). Improvements in sales were more than offset by a decline in gross margin as well as higher operating expenses, including a step-up in brick-and-mortar retail expenses. Notes to the Consolidated Financial Statements, Note 24

Asia/Pacific

Currency-adjusted revenues in the Asia/Pacific region remained 2% below the prior year. While we recorded robust growth in brick-and-mortar wholesale, this development was more than offset by declines in brick-and-mortar retail and the Group’s digital business, both reflecting muted local demand in China.

Sales performance in Asia/Pacific varied significantly across markets. In China, sales remained below the prior-year level, as weak consumer demand weighed strongly on domestic retail consumption. Southeast Asia & Pacific, on the other hand, posted high-single-digit sales improvements in fiscal 2024, supported by strong double-digit growth in Japan.

Segment earnings in the Asia/Pacific region amounted to EUR 74 million, 40% below the prior-year level (2023: EUR 124 million), translating into an EBIT margin of 13.5% (2023: 21.5%). This development mainly reflects the softer sales performance as well as an increase in operating expenses, including higher brick-and-mortar retail expenses. Notes to the Consolidated Financial Statements, Note 24

Licenses

Sales in our license business increased 4% currency-adjusted, supported by particularly strong improvements in the eyewear business. Additionally, lifestyle categories such as equestrian and cycling further spurred momentum in 2024. Earnings Development, Sales by Distribution Channel

Consequently, the license segment earnings increased by 8% to EUR 95 million (2023: EUR 88 million). Notes to the Consolidated Financial Statements, Note 24

Five-year overview of business segments