BERLIN — Driven by growth in all regions and distribution channels, Hugo Boss reported double-digit gains in sales and earnings in the first quarter.
This story first appeared in the April 27, 2012 issue of WWD. Subscribe Today.
Net income for the Metzingen, Germany-based company rose 14 percent to 95.2 million euros or $124.8 million, for the quarter, while operating results (earnings before interest, taxes, depreciation and amortization before special items) increased 13 percent to 148 million euros, or $194 million.
Dollar figures are converted at average exchange rates for the period to which they refer.
Sales gained 13 percent to hit 606.8 million euros, or $795.5 million. After adjustment for currency effects, revenues were up 10 percent. The U.K. and Germany fueled a 9 percent uptick in Europe, with the U.S. driving a currency-adjusted increase of 15 percent in the Americas. Double-digit growth in China pushed Asian sales up 9 percent after adjusting for currency effects.
The group’s wholesale business was up 1 percent on a currency-adjusted basis. Sales from Boss’ own retail activities, including outlets and online business, surged 27 percent, with comp-store sales up 11 percent on a currency adjusted basis. Boss said its directly operated stores contributed 6 percent growth to the comp-store development.
By brand, the core Boss Black generated a 13 percent sales increase in the first quarter, whereas the company’s luxury player, Boss Selection, saw sales climb 45 percent in the period, aided by brand initiatives for its repositioning. Sales of active-oriented Boss Green were up 25 percent, the more casual Boss Orange range came in flat, while Hugo sales gained 13 percent. The company said women’s wear sales were on par with the first quarter of last year at 65 million euros, or $85.2 million, which represents 11 percent of total sales, down from 12 percent the year previously.
Boss confirmed its 2012 forecast, which calls for a sales increase of up to 10 percent on a currency-neutral basis. EBITDA before special items is expected to see slightly stronger growth than sales due to expansion of the company’s own retail business and efficiency improvements.
Boss plans to open about 50 stores in 2012. The number of Boss’ own retail stores grew by 38 units in the first quarter, reaching 660 doors.