German fashion brand Hugo Boss has lifted its full-year guidance on the back of growth in Europe and Asia and – for the first time in two years – growth of its US own retail business.
The company, which has been undertaking a strategic realignment, now expects group sales to increase by a low single-digit percentage rate on a currency-adjusted basis in 2017, thanks to a favourable business performance in the year-to-date. It had previously guided for flat sales.
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“We are well on track to achieving our goals for 2017 or even exceeding some of them,” says CEO Mark Langer. “In particular, the performance of our own retail business is highly satisfying. We are making good progress in repositioning Boss and Hugo. In a few weeks’ time, our customers will be able to buy first parts of our spring/summer 2018 collection in stores. Accordingly, we have laid the foundations for future profitable growth.”
In the three months to the end of September, sales were up 1% to EUR710.7m (US$827.8m), boosted by growth in Europe, China and Japan.
In Europe, sales were underpinned by the group’s own retail business and wholesale business, up 5% currency-adjusted to EUR474m. Business in the Americas developed more disparately, with overall sales declining 5% to EUR136m. In Asia/Pacific, revenue benefited from a continued upswing on the Chinese market, pushing sales up 4% to EUR81m. Overall, sales rose by 5% in China, while Japan achieved double-digit growth.
Net earnings, meanwhile, dropped slightly to EUR80.3m from EUR80.6m, while gross margin widened to 64.9% from 64.7m a year earlier.
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By GlobalData
