Hugo Boss Q2 sales up by 14 percent

Tuesday, 31 July 2012

Hugo Boss sales in the second quarter of 2012 have grown by 14 per cent on a currency-neutral basis. EBITDA before special items grew by 23 per cent in the second quarter. The group posted an increase of 20 per cent to dollars (Rs 3,305 crores) as compared to 496.4895 million dollars (Rs 2,760 crores) in 2011. This improvement was supported by growth in all regions. Sales increased by 17 percent in Europe.

In the Americas region, the US market was the key driver for a currency-neutral increase of 11 percent. Revenues in Asia were 4 per cent higher on a currency-neutral basis. All of the region’s markets of Hugo Boss contributed to this growth. Wholesale sales in the second quarter were 10 per cent up on the previous year on a currency-neutral basis. Own retail (including outlets and online business) posted currency-adjusted growth of 16 per cent. On a comp store basis, the increase amounted to 4 per cent.

“We again achieved significant increases in sales and earnings in the first six months,” says Claus-Dietrich Lahrs, Chief Executive Officer of Hugo Boss AG. “This success was driven by increases in all regions. We are therefore confident that we shall achieve our targets for the year as a whole even in a more challenging economic environment.”

The group’s contribution margin fell by 110 basis points to 62.4 per cent compared to 63.5 pe rcent in 2011 because of higher markdowns and inventory write downs.

In the first six months of 2012, Hugo Boss group’s sales rose by 12 per cent on a currency-neutral basis and by 16 percent in reporting currency to 1.3386828 billion dollars (Rs 7,442 crores). Europe posted currency-adjusted growth of 12 percent. Sales in the Americas and Asia/Pacific improved by 13 pe rcent and 7 per cent. The Germany-based Hugo Boss projects around 70 new store openings in the course of the year.