Earnings at Hugo Boss's º£½ÇÊÓƵ operation, where Mike Ashley's Frasers Group holds a substantial stake, have been cut for the second year running.
The London-based arm of the German fashion house recorded pre-tax profits of £9m for 2024, a decline from £16.8m in 2023 and £30.4m in 2022, as reported by .
Fresh filings with Companies House reveal the label's revenue dropped from £391.6m to £377m during 2024.
Hugo Boss's revenue had previously reached £402.4m in 2022.
The company's wholesale income rose in 2024 from £131.5m to £134.5m, however retail revenues declined from £204.2m to £188.2m whilst digital earnings slipped from £55.9m to £54.2m.
The firm has proposed a dividend of £9.3m for the year, reduced from £26.9m distributed in 2023 and £16.3m in 2022.
'Significant investments' hit Hugo Boss profit
Directors stated: "Despite the challenging macro-economic environment within the º£½ÇÊÓƵ retail industry, the company met management's expectations per the latest outlook."
Hugo Boss noted that operating profits fell from £19.7m to £15.1m "directly as a result of the significant investments made during the year to support the company in achieving its 'Claim 5' targets."
The enterprise also explained: "In 2024, the company intensified the build up of the new operational model of receiving direct deliveries from suppliers as opposed to the previous central distribution centre model.
"The company also continued its investment in people to support the new operational model accordingly.
"The business also maintained its commitment to enhancing its retail estate through the refurbishment of six Boss outlets at Belfast, White City, Gatwick North Terminal, Heathrow Terminal 5, Gretna and London Brent Cross. Additionally, a fresh Boss store launched at Heathrow Terminal 3."
Regarding its future strategy, Hugo Boss stated: "The company continues to explore opportunities for new retail stores in markets with our desired demographic, invest in its portfolio, focus on key performance indicators to drive productivity, and maximise profit opportunities within our distribution channels."
Mike Ashley's empire tightens grip on brand
These figures emerge after City AM reported in July that Mike Ashley's Frasers Group had strengthened its hold on Hugo Boss following an increase in its stake.
The Sports Direct and House of Fraser owner expanded its shareholding in the German fashion house to more than 32 per cent.
In a statement issued at that time, Frasers Group confirmed it "continues to consider the acquisition of shares Hugo Boss AG as a strategic investment".
The group added that it was not dismissing the prospect of purchasing additional shares over the coming 12 months, though this would depend on market and company developments.
The 2024 financial results for Hugo Boss' º£½ÇÊÓƵ arm have now been released following the broader group's disclosure that sales had plateaued during the opening half of its current financial year. In figures disclosed in August, the company indicated it anticipates full-year sales will "remain broadly stable."
