Q4 2024 Hugo Boss AG Earnings Call Transcript
Key Points
- Hugo Boss AG (BOSSY) achieved record group sales of EUR4.3 billion in 2024, despite a challenging market environment.
- The company successfully executed its CLAIM 5 strategy, enhancing brand relevance and achieving above-market growth.
- Hugo Boss AG (BOSSY) improved its gross margin by 30 basis points to 61.8% in 2024, supported by sourcing efficiency and reduced air freight usage.
- The company's digital business continued to grow, with sales up 6%, now accounting for 20% of group sales.
- Hugo Boss AG (BOSSY) reported a substantial increase in free cash flow to EUR497 million, reflecting strong cash generation capabilities.
- The global market environment deteriorated, impacting consumer demand and leading to a slowdown in industry growth.
- Sales in Asia Pacific declined by 2% year over year, with significant challenges in the Chinese market.
- Operating expenses increased by 6% in 2024, driven by inflationary pressures and higher retail-related impairments.
- Net income after minorities declined by 17% to EUR213 million, resulting in a decrease in earnings per share.
- The company anticipates a muted first-quarter performance in 2025, with challenges in key markets such as the US and China.
Ladies and gentlemen, welcome to the Q4 full-year 2024 results conference call and live webcast. I'm Sandra, the Chorus Call operator. I would like to remind you that all participants are in listen-only mode, and the conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Christian Stohr, Senior Vice President, Investor Relations. Please go ahead, sir.
Good morning, everyone, and welcome to our full-year 2024 financial results presentation hosted by Danny Grieder, CEO of HUGO BOSS; and Yves Mueller, CFO and COO. Today's conference call will be divided into three parts. Daniel will kick off by highlighting some of our key strategic achievements in 2024. Afterwards, Yves will present our financial performance in the last fiscal year before Daniel provides details on our full-year 2025 outlook. As always, we will conclude with a Q&A session, where we will be happy to
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