Home / Knowledge / News / Fashion / HUGO BOSS sees strong growth in directly operated stores
HUGO BOSS sees strong growth in directly operated stores
30
Apr '10
HUGO BOSS announces first quarter results of 2010. The structural realignment of the Group implemented in 2009 with systematic expansion of directly operated stores (DOS) is taking effect and making a positive contribution to the sales and earnings development. Therefore, in the context of the generally improved market environment, sales from directly operated retail stores increased by 25% to EUR 83 million in the first quarter of 2010 (Q1 2009: EUR 67 million).

By contrast, considerably lower pre-order volumes from the recession-dominated year 2009 were still impacting sales in wholesale business. Against this background, the HUGO BOSS Group generated total sales of EUR 444 million in the first three months of the current fiscal year (Q1 2009: EUR 484 million), equivalent to a year-on-year decline of 8%.

“We have taken advantage of the economic challenge of the past year and created the conditions to allow us to exploit our growth potential even more effectively. On this basis and on the basis of the development in pre-orders for fall/winter, we are confident that 2010 will be a year of growth again for HUGO BOSS”, says Claus-Dietrich Lahrs, Chairman and CEO of the Managing Board of HUGO BOSS AG.

The trends in the international sales breakdown in the first quarter correspond to the growth markets identified for HUGO BOSS. Alongside overall continued sales declines in the European markets, growth was generated in North America and in the Asia/Pacific region.

Sales in Europe as a whole amounted to EUR 305 million, down 12% (adjusted for currency effects: 13%) on the previous year (Q1 2009: EUR 348 million).

By contrast, sales in the Americas increased by 5% in the local currency in the first three months of the current fiscal year. In the reporting currency, there was a 3% increase to EUR 82 million (Q1 2009: EUR 79 million). Sales in the U.S. were up 8% in the local currency. On a euro basis, sales increased by 2% to EUR 59 million (Q1 2009: EUR 58 million).

In the Asia/Pacific region, sales growth of 4% (adjusted for currency effects: 3%) to EUR 48 million was achieved (Q1 2009: EUR 47 million). At EUR 21 million, sales in the growth market China were considerably higher than in the previous year (Q1 2009: EUR 17 million).

Operating profit before interest, depreciation and amortization and special items (EBITDA before special items) decreased by 12% in the first quarter to EUR 92 million (Q1 2009: EUR 105 million). The adjusted EBITDA margin decreased slightly year-on-year to 20.7% (previous year: 21.6%). Consolidated net income decreased from EUR 64 million in the previous year to EUR 56 million.

At EUR 70 million, the operating cash flow was significantly above the figure for the first quarter of 2009 (EUR 46 million) due to improved inventory and receivables management. Net financial position decreased further to EUR 316 million as of March 31, 2010. A year ago, it had been at EUR 546 million and as of December 31, 2009 it amounted to EUR 379 million.

The HUGO BOSS Group will continue rigorously with the optimization measures already successfully implemented, particularly the expansion of its own retail business, and anticipates positive development in sales and earnings in the second half of the fiscal year. For the year as a whole, sales growth in the single-digit percentage range is anticipated, whilst adjusted EBITDA is expected to increase somewhat more strongly than sales in 2010.

HUGO BOSS


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Indian e-retail market may see 250% growth in 3 yrs: Crisil

Apparel/Garments | On 22nd Feb 2018

Indian e-retail market may see 250% growth in 3 yrs: Crisil

India’s e-retail market may rise by 250 per cent in the next three...

Interviews View All

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search