Hugo Boss Net, Sales Surge in Q2

The company’s sales in the period rose 20 percent while profits climbed 29 percent.

BERLIN — Hugo Boss continued to post double-digit growth in the second quarter of 2012, when net profits gained 29 percent to reach 40.2 million euros, or $51.7 million.

This story first appeared in the August 1, 2012 issue of WWD.  Subscribe Today.

Operating results increased 23 percent in the three months ended June 30 to 77.9 million euros, or $100.1 million.

Sales rose 20 percent to hit 485.3 million euros, or $623.7 million. On a currency-neutral basis, revenues were up 14 percent, with all regions contributing to the performance.

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Dollarfigures are converted from the euro at the average exchange rate for the period to which they refer.

Company wholesale revenues gained 10 percent in the quarter, which Boss said reflected the introduction of four approximately equally sized collections per year. The summer line, mainly delivered in the second quarter, has become more important, plus a larger portion of the fall collection was also delivered in that period.

The group’s own retail sales (including outlets and online business) showed currency-adjusted growth of 16 percent. On a comparative-store basis, sales were up 4 percent.

In the first half of 2012, Boss’ net profits rose 19 percent to 134.1 million euros, or $174.1 million, while earnings before interest, taxes, depreciation and amortization before special items were up 16 percent to 226.3 million euros, or $293.7 million. Sales gained 16 percent to 1.09 billion euros, or $1.42 billion.

Boss again confirmed its 2012 forecast, which calls for up to 10 percent growth in currency-neutral sales. Operating results are expected to grow between 10 and 12 percent.