HUGO BOSS expansion in growth markets pays off
The company reports today that sales increase by 6% after nine months of 2008
Against the equivalent period of the previous year, sales increased by 3% from EUR 1,328 million to EUR 1,364. Adjusted for exchange rate effects, sales increased by as much as 6%.
On the domestic German market, the consumer climate clouded over considerably in the last few months in the wake of the intensifying financial crisis. Despite declining fashion sales, HUGO BOSS developed better than the market, even though the consumer environment left its marks on HUGO BOSS. Sales declined slightly by 3% from EUR 287 million in 2007 to the current figure of EUR 279 million. In the other European countries, HUGO BOSS recorded a currency-adjusted increase in sales of 4%, and 2% in the reporting currency to EUR 671 million (Q1-Q3 2007: EUR 657 million).
However, the slight downturn on the domestic market was more than compensated for by a successfully implemented expansion strategy in growth markets. Primarily due to the development of the Group’s own retail business in the growth regions of North America and Asia, sales again enjoyed double-digit growth. On the American continent, the HUGO BOSS Group improved sales after adjustment for currency effects by 13% in the first nine months of fiscal 2008. Sales in the USA increased by 16% in local currency to the end of the third quarter 2008, despite the general trend of consumer restraint.
The global expansion of the Group’s own retail business results in the company now operating 314 stores. With sales growth of 17%, they made a significant contribution to the development of Group sales in the last nine months.
As a result of the general economic situation characterized by ongoing numerous and unclarified business uncertainties, the HUGO BOSS management has adjusted its sales and earnings outlook for fiscal year 2008.
