GERMANY: Hugo Boss Q1 profit down as sales fall
- Q1 net profit down 12.5% to EUR56m
- Sales down 8% to EUR444m
- Expects FY return to sales and revenue growth
Hugo Boss posted a first quarter net profit of EUR56m (US$74m), down 12.5% and hit by sales declines in Europe.
The German fashion company said total sales had declined 8% to EUR444m, with retail sales up 25% to EUR83m, but wholesale revenues impacted by the recession.
Sales in Europe were down 12% to EUR305m, but the Americas rose 3% to EUR82m, the US was up 2% to EUR59m and Asia/Pacific increased 4% to EUR48m.
Hugo Boss chairman and CEO Claus-Dietrich Lahrs predicted a return to sales growth in the single-digit percentage range for the full year, with adjusted EBITDA increasing more strongly.
“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,” he said.
“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.”
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