BERLIN — On the heels of its third record-breaking year in a row, Hugo Boss is projecting high-single-digit increases in currency-adjusted sales and earnings before interest, taxes, depreciation and amortization in 2013, driven by the group’s growing retail business.
Final 2012 figures released Thursday confirmed preliminary results published in February. Net income rose 8 percent to 307 million euros, or $394.8 million, and EBITDA allowances before special items gained 13 percent to 529 million euros, or $680.3 million. Sales rose 14 percent to 2.35 billion euros, or $3.02 billion, which corresponds to currency-neutral growth of 10 percent.
All dollar figures are converted at the average exchange rate for the period.
While Boss said all regions, distribution channels and brands contributed to 2012 growth, the group’s own retail business continued to forge ahead, exceeding wholesale sales for the first time. Sales in the group’s own retail network, including outlets and online stores, rose 19 percent on a currency-adjusted basis to 1.15 billion euros, or $1.48 billion.
The number of directly operated stores grew by 218 doors to a total of 840, with sales rising 17 percent to 758 million euros, or $974.8 million after currency adjustments. Outlet stores posted currency-adjusted sales growth of 21 percent, while Boss’ online business in Germany, the Netherlands, France, Great Britain, Austria, Switzerland and the U.S. rose 49 percent to 47 million euros, or $63 million. On a comp-store basis and adjusted for currency effects, the group’s retail sales grew 5 percent.
The wholesale business, which now generates 49 percent of group sales compared with 53 percent in 2011, rose 2 percent on a currency-adjusted basis to 1.14 billion euros, or $1.47 billion.
All Boss brands posted sales increases in 2012, with the core Boss label growing by 16 percent. Boss Green moved ahead 23 percent; Boss Orange gained 3 percent, and Hugo increased sales 12 percent. Men’s wear advanced by 15 percent to 2.10 billion euros, or $2.7 billion, and continues to contribute 89 percent of total sales. Women’s wear, again generating 11 percent of total sales, upped revenues 8 percent to 249 million euros, or $320.2 million.
Geographically, Boss noted solid performance in Western and Eastern Europe, with the U.K. boosting currency-adjusted sales 19 percent due to increases in the group’s own retail business there. Despite difficult market conditions in southern Europe, Boss posted double-digit growth in Italy and on the Iberian peninsula. Overall sales in Europe rose 10 percent, with profits up 5 percent.
The U.S. was another top performer, with currency-adjusted sales rising 15 percent to 434 million euros, or $558.2 million, supported by both wholesale and retail channels. However, Boss pointed out that sales increases in existing retail space and new store openings made the U.S. the group’s biggest retail market in 2012. Currency-adjusted sales were up 9 percent in Canada and 21 percent in Central and South America. Profits in the Americas gained 25 percent.
In the Asia/Pacific region, difficult market conditions in China as well as Oceania dampened growth to 4 percent on a currency-adjusted basis (14 percent in euros) to reach 353 million euros, or $454 million. On a currency-adjusted basis, the group’s own retail sales gained 8 percent, while wholesale sales fell 9 percent. Profits nonetheless advanced 18 percent.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia