GERMANY: H1 loss for Boss thanks to executive pay-offs
German fashion label Hugo Boss slid to a first-half loss of EUR6.1m (US$9.5m) thanks to payments made to departing executives.
The company's sales were up 5%, or 8% on a currency-adjusted basis, to EUR831m in the first six months of 2008, led by revenue increases in America and China.
Second quarter sales increased 9.1% to EUR321.1m. But group EBIT was down 5% to EUR88m, thanks to adjustments linked to payments made to departing executives in the wake of parent company Valentino Fashion Group's takeover by Permira last year.
Underlying EBIT was up 9%, while the EUR6.1m net loss compared to a net loss of EUR6.2m for the same period last year.
The company reported European sales up 4%, despite a slight decrease in sales in Germany, driven by rising revenues in the group's own retail stores.
Sales were up 14% in local currencies in America as a whole, with US sales up 17% in dollar terms, but only 2% in euro terms.
There was also double-digit growth in Asia, where sales were up 33%, thanks to a 46% surge in China.
Hugo Boss reaffirmed its 2008 guidance, projecting sales growth of 6-8% after currency adjustments, and EBIT increases of 8-10% after adjustments.
The company's new CEO, Claus-Dietrich Lahrs, joins Hugo Boss tomorrow (1 August) from Christian Dior, replacing Bruno Saelzer. CFO Joachim Reinhardt is also leaving the company today.
Nanotechnology can imbue textiles with eye-catching properties, but scientists and watchdogs are increasingly uncertain about the extent to which safety issues surrounding such developments have been ...
German fashion firm Hugo Boss' management is evaluating how best to reorganise its corporate structure, with a small number job losses a possibility, just-style has learnt....
Hugo Boss managing board member André Maeder will be leaving at the end of the month to become CEO of Swiss clothing retailer Charles Vögele Group....
Hugo Boss has confirmed to just-style that Mark Brashear will be joining the company as president and CEO for the Americas this month....
- 2014: Year in review - Sourcing winners and losers
- COMMENT: The decline of the buying office
- 2014: Year in review - Brand winners and losers
- 2014: Year in review - Retail winners and losers
- Bangladesh: The business benefits of compliance
- Report urges overhaul of Cambodia factory safety
- North Face debuts locally-grown "backyard" hoodie
- Apparel manufacturing leads US reshoring trend
- Bangladesh knitting worker killed by faulty lift
- Triumph recalls 22,000 bras for underwire fault