Home / Knowledge / News / Fashion / Despite sales declines, market position defended - HUGO BOSS
Despite sales declines, market position defended - HUGO BOSS
Nov '09
Mr. Claus-Dietrich Lahrs,Chairman & CEO of the Managing Board. HUGO BOSS AG
Mr. Claus-Dietrich Lahrs,Chairman & CEO of the Managing Board. HUGO BOSS AG
HUGO BOSS AG published its report on the first nine months of fiscal year 2009.

In the course of the year the global recession led to declining sales in the apparel industry, which were in some cases quite substantial. Against this background, HUGO BOSS AG has held its ground well so far this year. At EUR 1,238 million, Group sales were 9% below the previous year's level (Q1-Q3 2008: EUR 1,364 million). The operating profit margin was nevertheless maintained at previous year's level (18%).

The strategy of focusing more on the Group's own retail operations going forward is having a positive impact. The Group's own retail business generated a positive contribution to sales after nine months, while sales to wholesale customers fell. This was due to extreme uncertainty about the general economic situation and outlook.

Stable sales performance in growth regions Americas and Asia/Pacific
Regionally, HUGO BOSS posted lower sales in Europe while there was a slight increase in the Americas. Sales in Asia marginally eld their ground.

In the European market, sales fell by 13% to EUR 852 million in the first nine months of 2009 (Q1-Q3 2008: EUR 980 million). The downturn was primarily due to the continued economic challenges in Eastern Europe and Spain.

On the American continent, sales of EUR 233 million at the end of Q3 were 2% above the previous year's level (Q1-Q3 2008: EUR 228 million). Sales declines in North America contrasted with large 32% increases in the growth regions of Central and South America in local currencies.

In the Asia/Pacific region HUGO BOSS generated sales revenue of EUR 122 million by the end of Q3 2009. This figure was only slightly below that of the comparable period in the previous year (Q1-Q3 2008: EUR 124 million). The Group's own retail operations in China recorded a positive performance. Sales more than tripled compared to the previous year.

Successfully launching new products helped maintain license revenues at the previous year's level of EUR 31 million (Q1-Q3 2008: EUR 32 million).

Structural measures adopted at an early stage are making an impact
Operating earnings (EBITDA before special items) of EUR 224 million (Q1-Q3 2008: EUR 257 million) (18% of sales) reflect successful implementation of the structural and efficiency measures that had been adopted at an early stage. In qualitative terms, this profit margin is above the value for the previous year and has improved 3 percentage points compared to the first half of 2009.

Consolidated net income as at the end of September 2009 is EUR 99 million (Q1-Q3 2008: EUR 128 million), with special items of EUR 30 million arising from the structural and efficiency measures.

High level of cash flow will be used to reduce debt
The successful implementation of measures aimed at improving earnings is reflected particularly in the cash flow from operating activities, which went up by EUR 163 million to EUR 229 million compared to the corresponding period in the previous year. Besides the initiatives to optimize costs, the 34% reduction in net working capital has had a positive impact.

Must ReadView All

Courtesy: Amazon

Apparel/Garments | On 23rd Sep 2018

Consumers in Turkey get access to Amazon

Amazon has launched in Turkey giving customers in the country...

Value in omni-channel retail with Flipkart buying: Walmart

Apparel/Garments | On 23rd Sep 2018

Value in omni-channel retail with Flipkart buying: Walmart

With the acquisition of Flipkart, Walmart sees great value in...

E-com to result in common SE Asian consumer market: BCG

Textiles | On 23rd Sep 2018

E-com to result in common SE Asian consumer market: BCG

The rapid spread of e-commerce and digital technologies is binding...

Interviews View All

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Amit Jain, Shingora Textiles Ltd

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Prabu Mohanram, Balavigna Weaving Mills Pvt Ltd

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Paolo Crespi,

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Kamal Kulshreshth,

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Marcel Alberts, Eurofibers

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Melissa Tate, University of New South Wales

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Dave Rousse, INDA

Dave Rousse

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra, Huemn

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

September 2018

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

news category

Related Categories:

Advanced Search