The parent company of luxury fashion brand Hugo Boss posted a 22% rise in fourth-quarter net income attributable to equity holders on Thursday.
Income at the German firm increased to €85 million ($93 million) from the previous year's €70 million.
Earnings per share also saw a rise to €1.23 from €1.02 a year ago.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 2% to €219 million, with an improved EBITDA margin of 18.6%.
Quarterly sales showed a significant increase of 10% to €1.18 billion, marking a 13% growth on a currency-adjusted basis.
The company plans to propose a dividend of €1.35 per share for 2023 at the upcoming annual general meeting, representing a 35% increase from the previous year.
In the forecast for fiscal year 2024, Hugo Boss anticipates sales growth ranging from 3% to 6%, reaching about €4.3 billion-4.45 billion.
EBIT is expected to grow between 5% and 15% to a level of about €430 million to €475 million, with an EBIT margin target of 10.0% to 10.7% in 2024.
Despite challenges such as weak consumer sentiment and economic uncertainties, the company said it remains optimistic about growth opportunities outlined.
Hugo Boss aims to enhance profitability, with a focus on increasing EBIT faster than sales in the coming years. The company reaffirmed its goal to raise the EBIT margin to at least 12% by 2025.
Key leadership appointments were also announced on Thursday, including the reappointment of Daniel Grieder as chairman of the managing board and chief executive until December 31, 2028.
Oliver Timm was named as his deputy, in addition to his role as chief sales officer, and Yves Müller is set to continue as chief financial officer and chief operating officer until December 31, 2027.