Hugo Boss Financials Improve in Second Quarter
The fashion house says it is on track to meet full-year targets “even in a more challenging economic environment.”
LONDON - The Hugo Boss Group on Tuesday reported a second-quarter earnings and revenue improvement.
Second-quarter profit at the German fashion house rose 27 percent to €42 million ($76 million). Earnings before interest, taxes, depreciation, amortization and special items rose 23 percent.
For the first half of 2012, earnings rose 18 percent to €137.2 million ($169 million). Earnings before interest, taxes, depreciation, amortization and special items jumped 16 percent.
Meanwhile, second-quarter revenue rose 14 percent, or 20 percent when calculated all in euros, to €485 million ($596 million). But the company also reported higher markdowns and inventory write-downs, as well as cost increases associated with the expansion of own retail and higher marketing spending.
Six-months sales rose by 12 percent on a currency-neutral basis, or 16 percent, to €1.09 billion ($1.34 billion).
“We again achieved significant increases in sales and earnings in the first six months”, said CEO Claus-Dietrich Lahrs. “This success was driven by increases in all regions. We are therefore confident that we shall achieve our targets for the year as a whole even in a more challenging economic environment.”
Sales increased by 17 percent in Europe and 11 percent in the Americas, driven by the U.S. Revenue in Asia rose only 4 percent.
Hugo Boss said that full-year revenue should grow up to 10 percent on a currency-neutral basis, while EBITDA before special items would grow 10 percent-12 percent.
“While wholesale sales will remain roughly stable, a double-digit increase is forecast in own retail,” the company said. It also projects around 70 new store openings over the course of the year.