BERLIN — Hugo Boss picked up the pace of its earnings and sales growth in the second quarter.
The German brand said net income gained 18 percent, earnings before interest and taxes rose 10 percent and sales increased 5 percent in the three-month period ended June 30. On a currency-adjusted basis, sales advanced 8 percent.
Hugo Boss reported net income hit 62.8 million euros, or $86.1 million, with EBIT reaching 82.9 million euros, or $113.7 million.
Group sales were 558.9 million, or $770.8 million, supported by 10 percent growth in Europe and an upturn in the Americas, where sales in local currencies rose 7 percent. On a nominal basis, sales in the Americas advanced 1 percent. In Asia, they slipped 5 percent but were up 2 percent when adjusted for currency effects.
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Dollar figures are converted at average exchange for the period to which they refer.
Hugo Boss’ own retail business continued to make gains, with sales rising 14 percent to 353 million euros, or $484 million. In the first half, currency-adjusted comparative store sales gained 5 percent, with the retail network expanding by 18 doors to 1,028 sites.
The group’s second-quarter wholesale business, in contrast, slipped 6 percent. Boss said it was burdened by a challenging market environment, the takeover of selling spaces previously operated by wholesale partners and delivery shifts to the third quarter.
Looking ahead, Boss confirmed its 2014 targets, with plans to achieve high-single-digit sales growth after adjustment for currency effects. This would represent stronger growth than in 2013, with all regions expected to contribute. Its own retail is expected to generate double-digit gains, with about 50 new store openings planned for the year.
On the basis of order intake, Boss also anticipates its wholesale business will improve in the second half. The company forecasts a high-single-digit increase in earnings before interest, taxes, depreciation and amortization before special items and a positive net financial position at the end of 2014 based on the expected increase in earnings and continued strong cash flow development.