BERLIN — Following a record year in 2010, Hugo Boss is forecasting double-digit growth in currency-adjusted sales and earnings in 2011.
At its annual press conference Tuesday, the German fashion group projected currency adjusted sales will grow at least 12 percent in the year ahead, sustained by all regions and distribution channels. Operating income (EBITDA before special items) is expected to advance by at least 15 percent, supported by a further increase of the growth profit margin.
“We posted outstanding results in 2010 and have maintained this momentum in the new year,” commented Claus-Dietrich Lahrs, chief executive officer and chairman of the managing board. “I am confident we will comfortably exceed last year’s record highs in 2011.”
As previously reported, Boss boosted net income 82 percent in 2010 to 189 million euros, or $251 million, while sales increased by 7 percent on a currency-neutral basis and 11 percent in euro terms to 1.73 billion euros, or $2.3 billion.
Dollar figures were converted at average exchange rates for the periods to which they refer.
Geographically, Europe generated the lion’s share of group sales, though the largest gains were made in the Asia-Pacific region. European sales were up 3 percent to 1.07 billion euros, or $1.42 billion; sales in the Americas gained 22 percent to 380.7 million euros, or $505.5 million, while Asia-Pacific sales surged 40 percent to 230.4 million euros, or $305.9 million. The group’s own retail business also recorded sales gains of 35 percent to reach 691.1 million euros, or $917.7 million. The wholesale channel, on the other hand, saw sales decline 1 percent to 993.2 million euros, or $1.32 billion.
Based on the 2010 results and the 2011 forecast, the group has proposed higher dividends of 2.02 euros per common share and 2.03 euros for preferred share, compared to 0.96 and 0.97 euros for common and preferred shares in 2009.
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