Hugo Boss grows much faster in Q2 than Q1
According to marketer of luxury goods and premium fashion brands, Hugo Boss, it grew much faster in the second quarter of 2015 than in the first three months of 2015.
“All regions reported more favourable dynamics and against this backdrop, the Hugo Boss management reconfirmed its sales and profit targets for the full year,” Hugo Boss said in a press release.
Hugo Boss sales soared 16 per cent year over year to €647 million in Euro's in the three months to June 30, 2015, primarily from positive currency effects, while currency-adjusted sales rose by 7 per cent.
Europe made a substantial contribution to this development, posting currency-adjusted sales growth also of 7 per cent.
Of which, sales in the UK once more rose at a double-digit rate, and the pace of growth also increased in most of the other European countries.
Revenues in the Americas increased by 5 per cent, while the US market showed only moderate growth and grew by a marginal 1 per cent year on year.
Bolstered by double-digit rises in Australia and Japan, sales in Asia exceeded the prior year's level by 5 per cent after adjustment for currency effects, while China displayed a currency-adjusted rise of 6 per cent.
“Positive effects from the takeover of a franchise partner and new openings more than offset weakening sales growth in Hong Kong,” it added.
Higher rebates and negative inventory valuation however had a negative impact, due to which, gross profit margin fell by 20 basis points from year ago period to 66.5 per cent.
EBITDA before special items improved by 12 per cent over the prior year second quarter to €123 million and adjusted operating margin contracted 60 basis points to 19.1 per cent in quarter under review.
For the reporting quarter, net income surged 13 per cent to €71 million as against €63 million in the same quarter of the previous year.
Trade net working capital amounted to €537 million at the end of the second quarter, up a steep 18 per cent compared to the end of the same period of the prior year.
At €563 million, inventories were up by 4 per cent adjusted for currency effects and 15 per cent in the reporting currency.
“The expansion of the Group's own retail business and the takeover of selling spaces from a number of business partners contributed to this development,” the marketer explained.
Net financial liabilities at €214 million, showed a slight increase of 2 per cent from the second quarter of 2014 because of higher investments.
The company reconfirmed its forecast that currency-adjusted sales in 2015 will rise by a mid-single-digit rate, with all regions likely to contribute to the achievement of this goal.
"Thanks to the very healthy development of the Group's own retail business, growth accelerated in the second quarter," Claus-Dietrich Lahrs, CEO of Hugo Boss said. (AR)
Fibre2Fashion News Desk – India