Hugo Boss has guided for growth over the year ahead after first-quarter profit beat expectations.
Earnings before interest and tax came in 6% higher at €69 million (£59 million), above analysts' expectations for €65 million, the clothing company reported on Thursday.
Sales climbed 5% to €1.01 billion over the three months to March, with earnings growing from €0.50 to €0.55 on a per-share basis.
“I am pleased that we delivered further sales and earnings improvements,” chief executive Daniel Grieder said.
“In a volatile market environment, we remain focused on [...] capitalising on our numerous growth opportunities.”
Hugo Boss said revenue improvement came across all regions, as profit margins increased year-on-year from 6.7% to 6.8%.
Demand for both the ‘Boss’ and ‘Hugo’ brands remained robust, the company added, with the 2024 spring and summer collections “well received”.
Inventories were also reduced by 2% over the quarter, which Hugo Boss said amounted to a €13 million boost to free cash flow.
“We remain equally committed to realising further efficiencies,” Grieder added, “all of this will enable us to continue our profitable growth trajectory”.
Hugo Boss confirmed full-year 2024 guidance for a between 3% and 6% rise in sales to as much as €4.45 billion, against €4.2 billion in 2023.
Pre-tax earnings were forecast to climb by 5% to 15% to between €430 million and €475 million on the back of an increase in margins to 10% and 10.7%.