Hugo Boss shares took a hit early on Tuesday after the luxury fashion brand’s report of record sales for the full year failed to divert investor focus from an earnings miss.
Full-year sales hit record levels for the year, Hugo Boss said on Tuesday, climbing 15% to €4.2 billion (£3.6 billion), or 18% on a constant currency basis.
However, a 17% jump in fourth-quarter preliminary pre-tax earnings to €121 million missed consensus expectations of €129 million.
Pre-tax earnings for the full year were up by 22% to €410 million, meanwhile.
Fourth-quarter sales grew 13% on a constant currency basis to €1.2 billion, as all brands and regions contributed to growth, the company added.
Revenue jumped 33% in the Asia-Pacific region late on in the year and grew by 18% and 7% in the Americas and the Europe, Middle East and Africa (EMEA) regions respectively.
“We ended 2023 on a high note, making it a record year for Hugo Boss,” chief executive Daniel Grieder said.
“The double-digit top and bottom-line improvements in the important final quarter are all the more remarkable considering the current challenging global market environment.”
Hugo Boss added that revenue of €5 billion was being targeted by 2025, alongside a margin of “at least” 12% - up on 2023's expected figure of 9.8%.
Shares slipped 10% to €59.74.