German fashion house Hugo Boss has posted double-digit increase in sales in the second quarter of 2012, and is on course to meet its ten percent growth target, even though its sales slowed in Asia. Sales in Q2 grew by 14 percent to 485 million Euros, with sales increased by 17 percent in Europe from growth across all regions. In the Americas region, the US market was the key driver with an increase of eleven percent, while revenues in Asia were just 4 percent higher, down slightly from the first quarter sales in Asia, which were up 9 percent.
Sales at Hugo Boss’ wholesale operation were ten percent up on the previous year, which was helped due to the introduction of four equally sized collections a year with the summer collection, which is mainly delivered in the second quarter, and has become important. Additionally, compared to the prior year, a greater proportion of the autumn collection was delivered in the second quarter already.
Hugo Boss own store sales grew by four percent, with total sales including outlets and online business posting a growth of 16 percent.
In the first six months of the year, the Hugo Boss Group’s sales rose by 12 percent to 1,092 million Euros. Europe, posted a 12 percent increase growing in line with the Americas and Asia, which both improved by 13 percent and 7 percent, respectively.
The wholesale sales grew by four percent compared with the same period last year and sales at Hugo Boss’ retail arm grew by 21 percent, 7 percent on a like-for-like basis. Overall, operating profits, helped by marked increased in own retail sales and efficiency improvements in global sourcing and production, improved by 16 percent to 226 million Euros in the first half.
“We again achieved significant increases in sales and earnings in the first six months”, said Claus-Dietrich Lahrs, Chief Executive Officer of Hugo Boss AG. “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.”
In the results statement, Hugo Boss added that it expects to achieve a 10 percent growth in sales for the full year with all regions contributing to this. Adding that while wholesale sales will remain roughly stable, a double-digit increase is forecast in own retail. Additionally, during the course of the year the group is planning to open around seventy new stores.
Image: Hugo Boss AW12