METZINGEN (dpa-AFX) - Fashion retailer Hugo Boss set a sales record last year despite the sluggish consumer sentiment. The past fourth quarter was the strongest in the company's history in terms of sales. Hugo Boss gained considerable ground towards the end of the year, particularly in China. The MDax company has thus reached the upper end of the forecast range for 2023, which had already been raised twice previously. However, the operating result was weaker than generally expected and did not go down well with investors on the stock market.

For the year as a whole, earnings climbed by 15 percent to a record figure of 4.2 billion euros, as Hugo Boss announced on Tuesday on the basis of preliminary figures in Metzingen. Earnings before interest and taxes (EBIT) are therefore likely to have improved by 22 percent to 410 million euros.

The fashion retailer had recently forecast sales growth of 12 to 15 percent to up to 4.2 billion euros for 2023. For the operating result, the management had expected an increase of 20 to 25 percent to up to 420 million euros.

However, analysts had hoped for somewhat more from the operating result in day-to-day business. The Hugo Boss share price fell in the morning by eight and a half percent to 60.64 euros, its lowest level since November. According to analyst Frederick Wild from investment firm Jefferies, the operating result was disappointing, while sales were as expected.

In the fourth quarter, Hugo Boss sales rose by 10 percent to 1.18 billion euros. The fashion retailer had never before achieved this much in a single quarter. All brands, regions and sales channels contributed to the growth, according to the Group. According to initial calculations, earnings before interest and taxes (EBIT) increased by 17 percent to 121 million euros in the last three months of the year compared to the same period last year.

Business was particularly good in the Asia/Pacific region, where turnover rose by a good quarter in the final quarter. In the Americas, revenue increased by 15 percent. In Europe, the Middle East and Africa, however, they only climbed by 5 percent. While Hugo Boss' digital business remained on course for double-digit growth, the fashion retailer was also able to hold its own in brick-and-mortar retail with an increase of 9 percent.

"We closed 2023 with an excellent result and thus achieved a record year for Hugo Boss," said CEO Daniel Grieder according to the press release. He spoke of a robust basis for further market share gains and a milestone in achieving the medium-term financial targets that Hugo Boss also raised last year.

The MDax group is aiming for sales of 5 billion euros and an operating result (EBIT) of at least 600 million euros by 2025. Hugo Boss will present the detailed figures for the past year and the outlook for 2024 on March 7./niw/tav/mis