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Boss Profits Rise 13.9%

Hugo Boss on Tuesday posted third-quarter gains in both profits and sales, with its men's and women's categories gaining ground from a year ago.

BERLIN — Hugo Boss on Tuesday posted third-quarter gains in both profits and sales, with its men’s and women’s categories gaining ground from a year ago.

Profits for the group rose 13.9 percent to $129.1 million from $113.4 million last year. Group sales rose 6.1 percent to $773.1 million in the quarter from $728.9 million last year. All dollar figures were calculated from the euro at average exchange rates for the quarter.

Boss Womenswear surged ahead 22.8 percent to $96 million in the quarter from $78.2 million last year. Boss Menswear sales grew by 4.7 percent to $611.4 million from $583.7 million.

For the first nine months of this year, profits jumped 35.1 percent to $221.8 million from $164.1 million. Sales rose by 9.2 percent to $1.92 billion from $1.76 billion last year.

Geographically, group sales in the first nine months rose 10 percent in Europe, with domestic sales up 4 percent. In the U.S., sales grew 11 percent on a currency-adjusted basis. However, currency-adjusted sales via wholesalers jumped 21 percent in the U.S., while sales in the group’s own stores gained 19 percent, the company said. In Asia and other regions, sales grew a nominal 6 percent on a currency-adjusted basis.

For 2007 as a whole, the managing board continues to anticipate a currency-adjusted sales gain of 10 to 12 percent, with earnings before interest and taxes rising 12 to 15 percent compared with a year ago.

Boss products, which consist of the core Boss brand and the trendier Hugo Boss brand, are sold in more than 100 countries.

This story first appeared in the November 7, 2007 issue of WWD.  Subscribe Today.