The HUGO BOSS Group increased sales and earnings in the first nine months of 2013. All regions contributed to the currency-adjusted sales improvement. The Group’s own retail activities posted significant double-digit growth and more than offset the decline in the wholesale business.
For 2013 as a whole, the Company is forecasting a rise in sales after adjustment for currency effects of between 6% and 8%. Operating profit (EBITDA before special items) is expected to grow at a similar rate.
“The results for the first nine months show that HUGO BOSS has systematically addressed the difficult market environment. Our focus on own retail and the high quality presentation of our brands has paid off,” commented Claus-Dietrich Lahrs, CEO of HUGO BOSS AG. “Demand in our own stores picked up noticeably in the third quarter compared to the first half year. We are therefore anticipating strong growth in sales and earnings in the fourth quarter.”
Comp store retail sales up 4% in third quarter
HUGO BOSS Group sales rose by 2% in the third quarter to EUR 658 million (Q3 2012: EUR 646 million). This was negatively influenced by exchange rate effects. Sales growth of 5% was achieved after adjustment for currency effects.
Regionally, Europe displayed the strongest growth momentum. Aided by rising demand in the Group’s own retail activities, sales climbed by 8% in the third quarter after adjustment for currency effects. The sales development in the Americas was stable adjusted for currency effects and was affected mainly by the weaker U.S. wholesale business. Despite the market environment in China remaining tense, the Asia region posted currency-adjusted sales growth of 4%.
Wholesale sales declined by 8% in the third quarter after adjustment for currency effects. In addition to the weak market environment in Europe and the Americas, this development was influenced by takeovers of shop-in-shop units previously operated by wholesale partners, resulting in a shift in sales away from the wholesale business and towards the Group’s own retail business.
Sales in the Group’s own retail activities (including outlets and online business) increased by 23% in local currencies. Comp store growth after adjustment for currency effects accelerated as against previous quarters and amounted to 4%.
