BERLIN — Buoyed by a stronger-than-expected fourth quarter, Hugo Boss generated a 53 percent increase in net profits in 2011 to 284 million euros, or $395.9 million, on a 9 percent gain in sales to 2.06 billion euros, or $2.87 billion.
This story first appeared in the February 10, 2012 issue of WWD. Subscribe Today.
In figures released Thursday, Boss reported fourth-quarter sales rose 18 percent to 499 million euros, or $673.3 million, with earnings before interest, taxes, depreciation and amortization gaining 26 percent to 97 million euros, or $130.9 million, before special items. All dollar figures are converted from the euro at an average exchange rate for the period.
Boss said double-digit growth in all regions and significant growth in the group’s own retail business powered the sales performance, with expansion of directly operated stores and efficiency improvements in that channel contributing to the EBITDA gains.
Analysts noted the company’s shares are up 36 percent year-to-date, making Boss one of the best performers in the luxury sector.
Boss chief executive officer Claus-Dietrich Lahrs said 2012 has also gotten off to a good start. He added that despite current economic uncertainties, he remains confident the group will “take another big step towards achieving our medium-term goals in the current fiscal year.”
Final results for 2011 and the 2012 outlook will be released on March 14.
In Frankfurt Thursday, Hugo Boss preferred shares closed up 0.68 percent at 77.30 euros, or $102.42 at current exchange. Boss common shares closed up 1.24 percent at 69.24 euros, or $91.74.