GERMANY: Hugo Boss Q2 surges on fatter margins
- Q2 net profit up 27% to EUR53.3m
- Sales up 10% to EUR532m
- H1 net profit down 1% to EUR135.2m
German fashion business Hugo Boss boosted net profit by 27% in the second quarter, thanks to a double-digit sales increase with contributions from all regions and distribution channels.
Adjusted for currency fluctuations, sales in Europe rose 14% in the three months to 30 June, helped by its relatively high wholesale share and the delivery of Hugo Boss’ summer collection, mostly in the second quarter.
Sales in the Americas were up 9%, driven predominantly by US growth, while Asia increased 7%, thanks to improvements in China, and especially Hong Kong.
Wholesale revenues were up 6% in the quarter, and sales in the company’s own retail network rose 15%, with comparable store sales up 2%.
Gross profit margin reached 65.8% in the quarter, up 340 basis points thanks to positive inventory valuation effects, lower sales deductions and above-average sales growth in own retail.
With first-half sales up 3% to EUR1.125bn, Hugo Boss said it still expected to see high single-digit sales growth for the full year, with operating profit to rise in the high single digits.
“In an economic environment which has not become any easier in all relevant sales markets, we continued to grow in the first half of the year,” said Claus-Dietrich Lahrs, company CEO.
“The investments in our brands, as well as our collections, will be the cornerstone for a successful second half-year.”
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