Shares in Hugo Boss saw a boost after the luxury fashion company announced an increase in sales and earnings for the third quarter. This positive growth trend has helped normalize the luxury industry.
As of 0843 GMT, shares were up 4.3% at EUR57.76.
For the quarter ending in September, Hugo Boss reported earnings before interest and taxes of 103 million euros ($108.9 million), representing a 12% increase compared to the previous year. The German premium-fashion firm’s sales also grew by 10%, reaching EUR1.03 billion, exceeding consensus estimates of EUR1.02 billion.
According to a research note by Citi analysts Thomas Chauvet and Lorenzo Bracco, the company’s sustained double-digit growth in all regions confirms Hugo Boss as one of the few fashion brands still experiencing significant expansion.
Hugo Boss has reaffirmed its guidance for 2023 and expects sales to continue growing in a range of 12% to 15%. The company aims to achieve a new record level of revenue between EUR4.1 billion and EUR4.2 billion. Additionally, it anticipates EBIT to expand by 20% to 25%, reaching a level of between EUR400 million and EUR420 million.
Despite these positive projections, Baader Helvea analyst Volker Bosse highlighted challenges within the market environment that could impact future expectations. The market currently estimates ongoing double-digit sales growth for Hugo Boss in the coming year.