At the time, we pointed out that the return to sales growth was a welcome end to a painful decade of stagnation. This momentum continued in 2024, with record sales of €4.3bn and a gross margin that stabilized at 62% - a level comparable to that of Inditex group, owner of Zara stores, amongst others.
On a less cheerful note, an authentically high-end positioning seems to remain definitively out of reach for Hugo Boss, and the gross margin records achieved between 2012 and 2019 - when the latter hovered around 65%-66%, on a par with Kering for example - an ideal towards which it will be difficult to aspire again.
The other two major vectors for improvement - the breakthrough in women's fashion and in the various digital channels - have also seen a marked deceleration over the past twelve months, with sales growth of just 3% for the former, and barely 6% for the latter, despite substantial investment.
Regarding financial performance, if we want to see the glass as half full, we can say that cash generation remains fairly good, enabling Hugo Boss to ensure a third consecutive year of dividend increases - the payout reached €93m - in parallel with its debt reduction.
If we want to see the glass as half-empty, we'd point out that this payout remains well below the level it was at between 2012 and 2019 - when it exceeded €200m a year. Profitability also appears to be in freefall overall compared to the previous cycle, reflecting a dense and brutal competitive landscape, including in the premium segment - between luxury and mainstream fashion - traditionally occupied by Hugo Boss.
Taking a step back, we can see that the group's sales have quadrupled in twenty years, while its profits seem to have been stuck under the same glass ceiling for the last eight years. This is because, despite gross margin gains, profitability is being eaten away by ongoing inflation in the cost structure, which has also quadrupled in twenty years.
In stark contrast to other major ready-to-wear brands, Hugo Boss has recently pivoted towards a new retailer-focused strategy, with some success it would seem; but it will undoubtedly take more to really make a difference.
On the stockmarket, the group's valuation multiples have returned to their historical averages. The share price could, however, be bolstered by the manifest interest of the volcanic and talented British businessman Mike Ashley, founder of Sports Direct and owner of Frasers.
He has been steadily increasing his stake in the company for almost five years, leaving little doubt as to his ultimate intentions.
