BERLIN – Driven by growth in all brands and distribution channels, and the further expansion of the group’s own retail business, Hugo Boss posted the strongest half-year results in the group’s history.
As previously reported July 15, Boss raised its guidance for the full year prompted by a particularly buoyant second quarter. Net income for the three months ended June 30 more than quintupled to reach 33 million euros, or $47.5 million.
Meanwhile, earnings before interest and taxes (EBIT) more than quadrupled to 45.8 million euros, or $65.9 million, in the second quarter and sales hit 405.4 million euros, or $583.3 million, a gain of 25 percent. Dollar figures are calculated at average exchange for the periods to which they refer.
Hugo Boss had published preliminary second quarter data on July 15. In final figures released Thursday, net income for the first six months of 2011 leapt 86 percent to 116.5 million euros, or $166.6 million. EBIT also surged 86 percent to 161.7 million euros, or $231.3 million, and sales rose 23 percent to 944.6 million euros, or $1.35 billion.
All regions posted double-digit sales gains in the first six months. In Europe, which now generates 61 percent of sales (down from 63.7 percent in 2010), sales grew 16 percent. Sales grew 26 percent in the Americas and 55 percent in Asia Pacific, when adjusted for currency changes. By region, six-month profit rose 29 percent in Europe, 64 per cent in the Americas and 79 percent in Asia/Pacific.
The group’s own retail business, which now represents 43.3 percent of sales versus 37.4 percent in the first half of 2010, is expected to remain the group’s main engine of sales growth. Sales in the group’s network of 576 stores grew 42 percent in the first half of 2011, while directly operated Boss stores, which excludes outlets and online sales, reported a 53 percent increase.
The group’s raised sales and earnings forecast now calls for a currency neutral sales increase of 15 to 17 percent, with earnings before interest, taxes, depreciations, amortization and special items to rise 25 to 30 percent.
Boss said it expects double-digit growth in all regions for the year, though it foresees the Asia Pacific region and the Americas outpacing Europe. Boss plans to open a total of 70 new stores in 2011, with the focus on China, but noted attractive opportunities in Europe.