HUGO BOSS sales increase by 14% in first 9 months 2006
02 Nov '06
2 min read
In the first nine months of the current fiscal year, the HUGO BOSS fashion group increased sales by 14 percent - both in the reporting currency and on a currency-adjusted basis - to a total of EUR 1,216 million (Q1-Q3 2005: EUR 1,063 million).
BOSS Womenswear contributed in particular to the upward sales trend, with sales rising by 70 percent to EUR 127 million (Q1-Q3 2005: EUR 74 million).
In addition, shoes and leather accessories, which rose 35 percent, again contributed to the increase in sales, as did the Group's own retail business, which increased 43 percent (currency-adjusted, like-for-like growth: 9 percent).
In Europe, sales of the HUGO BOSS Group were up by 14 percent in the first three quarters, rising from EUR 756 million to EUR 863 million.
HUGO BOSS continued to increase sales in Germany as well, again clearly outperforming the German fashion market with sales growth of 11 percent to EUR 278 million (Q1-Q3 2005: EUR 251 million).
In the U.S., sales in local currency grew by 17 percent despite the increasingly difficult consumer environment. Sales in the reporting currency rose 19 percent to EUR 146 million (Q1-Q3 2005: EUR 123 million).
Royalties of the HUGO BOSS Group amounted to EUR 28 million at the end of the first nine months of fiscal 2006 (Q1-Q3 2005: EUR 28 million). Royalty income from fragrances rose by 4 percent. Royalties from watches and eyeware declined slightly on the whole due to the change in licensee for these product groups.
Income before interest and taxes (EBIT) increased by 13 percent over the prior-year period to EUR 188 million in the first nine months of the current fiscal year (Q1-Q3 2005: EUR 166 million).
Income before taxes rose by 15 percent over the prior-year period to EUR 186 million (Q1-Q3 2005: EUR 162 million). Net income rose by 17 percent to EUR 133 million (Q1-Q3 2005: EUR 114 million).
Cash flow increased by 17 percent in the first three quarters of 2006 to EUR million 173 (Q1-Q3 2005: EUR 148 million), while free cash flow before dividends declined to EUR 21 million (Q1-Q3 2005: EUR 99 million).
For full-year 2006, the Managing Board is forecasting an increase in currencyadjusted sales of 12-14 percent over the prior-year and a rise in income before taxes in proportion with sales growth.
For fiscal 2007, the Managing Board of HUGO BOSS anticipates setting new records in sales and earnings.
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