BERLIN — Hugo Boss AG snapped back in the second quarter of 2010, posting increases in net income and sales for the period.
The German apparel group’s net income hit 6.3 million euros, or $8 million, in the second quarter, compared with a loss of 15.9 million euros, or $21.7 million, for the quarter in 2009. All dollar figures are converted from the euro at average exchange rates for the respective periods.
Sales gained 7 percent to 324.8 million euros, or $414.5 million. Boss said the group’s own retail business made a “big contribution” to the positive sales picture, with like-for-like sales up 13 percent in the quarter.
For the six months, however, group sales were down 2 percent to 769 million euros, or $981.3 million, though net income surged 31 percent to 62.6 million euros, or $79.9 million.
Geographically, Boss said growing sales in America and the Asia-Pacific region helped offset declines in Europe and other markets. For the half-year period, sales in Europe (including the Middle East and Africa) slipped 9 percent, though the decline narrowed to 3 percent in the second quarter. In the Americas, first-half sales in the reporting currency rose 14 percent to 169 million euros or $215.7 million, with the Asia-Pacific region boosting sales 17 percent to 92 million euros, or $117.4 million. In the Asia-Pacific region, Boss has entered into a joint venture with the Rainbow Group, effective July 1, that will expand the brand’s retail network in the region to 34 locations.
Boss remains optimistic for the year as a whole, forecasting currency-adjusted sales growth of 3 to 5 percent and earnings before interest, taxes, depreciation and amortization before special items to increase by 10 to 12 percent in the financial year.