Hugo Boss sales in Europe remained stable. However, the wholesale business was burdened by delivery shifts as compared to the prior year. In Great Britain and in the Benelux the Group's own retail business in particular provided for sales increases of 11 per cent and of 4 per cent, respectively. Especially Great Britain benefited from solid local demand and robust business with tourists. In contrast, sales decreased by 4 per cent in Germany and by 11 per cent in France. However, in Germany the Group's own retail business also posted gains.
In the second quarter, sales in Asia/Pacific benefited again from the ongoing upswing on the Chinese market. Hence, sales rose by 14 per cent in China. With double digit sales growth on a like-for-like basis the Chinese mainland continued to perform significantly better than Hong Kong and Macau. Sales were also up in Japan.
The currency-adjusted sales of the company went up 3 per cent in the second quarter. EBITDA before special items remained stable. Comp store sales in its own retail business picked up significantly in all three regions, with online business likewise growing in the second quarter.
Sales in the wholesale business fell short of the prior year due to delivery shifts as compared to the prior year. The core markets of Great Britain and China again performed well, while US business expanded for the first time in two years. Despite increased marketing expenses and spending on the digital transformation of the business model, operating profit remained at the prior year’s level. On this basis, Hugo Boss is confirming its target of stable full-year sales and earnings in 2017, said the company in a press release.
“Our strategic realignment is beginning to take effect. Business in the second quarter was encouraging. We made considerable headway in the US and in online business in particular,” said Mark Langer, chief executive officer of Hugo Boss AG. “We are reaffirming our full-year outlook and facing the future beyond this year with confidence. The new brand strategy has been very positively received by wholesale partners. Consequently, we have passed an important milestone in our strategic realignment.”
The Spring/Summer 2018 collections which were presented recently reflect the focus on the Boss and Hugo brands for the first time. The increased profile of the two brands was showcased at various fashion shows.
Against this backdrop, Hugo Boss will be pursuing its goal of growing sales and earnings in 2018. Looking ahead to 2019 and beyond, Hugo Boss assumes that sales will grow more strongly than the relevant market segment and that the operating margin will increase again. (KD)
Fibre2Fashion News Desk – India
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