The royalties business performed very favorably in the past three quarters, with sales increasing by 13% from the prior-year period to a total of EUR 32 million (Q1-Q3 2006: EUR 28 million).
The increase was driven by the successful launch of the new eyewear and watches collections and the continued expansion of the fragrances business with the two fragrances “HUGO XX” for women and “HUGO XY” for men.
In the first nine months of 2007, earnings before interest and taxes (EBIT) improved by 16% to EUR 218 million year on year (Q1-Q3 2006: EUR 188 million).
In the same period, earnings before taxes rose 14% from the prior-year period to EUR 212 million (Q1-Q3 2006: EUR 186 million). Net income climbed 16% to EUR 153 million (Q1-Q3 2006: EUR 133 million).
Cash flow improved by 24% in the first three quarters of 2007, up from EUR 173 million to EUR 215 million. The free cash flow before dividends was below the prior-year period at EUR 11 million (Q1-Q3 2006: EUR 21 million).
“The consistent implementation of our strategic alignment has made us one of the most successful international fashion and lifestyle groups in the past few years.
In the high-end segment of the fashion market, we are efficient and future-focused, and we will end fiscal 2007 with record performance,” comments Dr. Bruno Sälzer, Chairman of the Managing Board of HUGO BOSS AG.
For the year 2007 as a whole, the Managing Board of HUGO BOSS AG anticipates an increase of 10-12% for currency-adjusted sales and a 12-15% rise for earnings before taxes. The Managing Board is also projecting growth in sales and earnings for 2008.
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