BERLIN — In what Hugo Boss termed “the best year in the group’s history to date,” the German fashion house reported buoyant profit and sales growth in both the fourth quarter and for the full year.
In preliminary figures released Thursday, fourth-quarter net income surged 580 percent to 34 million euros, or $46.3 million, compared to 5 million euros, or $7.4 million, for the period in 2009. All dollar figures are converted from the euro at an average exchange rate for the respective periods.
Group sales for the quarter rose 24 percent on a currency-adjusted basis and 30 percent in euro terms to 422 million euros, or $574.1 million.
Net income for the full year gained 82 percent to reach 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. This is the group’s highest sales level in its history. Boss said the Chinese and American markets, as well as the group’s own retail business, which grew comparable sales 9 percent in 2010, significantly contributed to the strong sales performance.
Earnings before interest, taxes, depreciation and amortization (EBITDA) before special items outpaced the group’s original expectations, gaining 64 percent in the fourth quarter to reach 77 million euros, or $104.7 million. For the full year, EBITDA before special items grew 31 percent to 350 million euros, or $464.8 million. Boss said expansion of the group’s own retail network and consistent enforcement of its pricing policy at wholesale and company owned retail significantly supported the group’s operative earnings performance.
Chief executive officer Claus-Dietrich Lahrs said the group’s profitable growth “will be clearly visible also in 2011,” and the Hugo Boss managing board is expecting continued sales and earnings growth in the year ahead. The company will publish final results for 2010 and the outlook for 2011 on March 29.