Hugo Boss saw its share price climb in trading yesterday (16 January) as the German fashion brand hit its targets for 2017 and signalled its turnaround is gathering further pace.
For the full year, group sales, excluding foreign exchange movements, were up 3% to EUR2.73bn (US$3.34bn), driven by strong demand outside of Europe and strong sales development in its own retail business.
The Americas recorded the strongest growth where revenues were up 11% year-on-year to EUR577m, while Asia Pacific grew 6% to EUR396m. Europe, Middle East and Africa sales increased 2% to EUR1.68bn.
“We achieved our goals for 2017,” said CEO Mark Langer. “The final quarter was particularly pleasing. The strong development in own retail shows that we are on the right path with the changes we are making to our collections and stores. We strive to carry the momentum gained in the last months into 2018. Our online business is now on track, too, and will make a sustainable contribution toward the growth of the company.”
Meanwhile, own retail sales were up 5% in the quarter to EUR1.73bn, while the Hugo brand achieved the highest sales growth at 5% to EUR397m. Menswear achieved 4% sales growth to EUR2.44bn, while womenswear saw a decline of 2% to EUR293m.
The company, which will publish its full results for 2017 on 8 March, said it expects EBITDA, before special items, to be largely the same as in 2016 when it stood at EUR493m.
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