HUGO BOSS in the first nine months of 2007:
* Currency-adjusted sales rise by 12%, by 9% in euros
* Net income improves by 16%
* BOSS Womenswear, own retail business, and shoes and leather
accessories continue to drive growth
Metzingen, November 6, 2007. In the first nine months of the current
fiscal year, the HUGO BOSS fashion group increased its sales by 9%
(currency-adjusted: 12%) to EUR 1,328 million from the prior-year
period (Q1-Q3 2006: EUR 1,216 million).
BOSS Womenswear made an especially strong contribution to the growth
in sales with a 32% increase (Q1-Q3 2007: EUR 166 million, Q1-Q3
2006: EUR 127 million). In addition, the Group's own retail business
continued to develop very dynamically, with a 26% increase in sales
(Q1-Q3 2007: EUR 165 million, Q1-Q3 2006: EUR 131 million). The shoe
and leather accessories collections also did very well, posting
growth of 17% (Q1-Q3 2007: EUR 147 million, Q1-Q3 2006: EUR 126
In Europe, sales of the HUGO BOSS Group rose 10% in the first three
quarters of 2007, up from EUR 863 million to EUR 945 million. Growth
in Germany continued at a steady rate of 4% (Q1-Q3 2007: EUR 288
million, Q1-Q3 2006: EUR 278 million).
Sales in the USA trended very favorably in the first nine months of
2007, rising by 11% (currency-adjusted: 20%) to EUR 161 million
(Q1-Q3 2006: EUR 146 million).
In Asia/other regions, sales increased by 6% in Group currency in the
first three quarters of the year 2007 (currency-adjusted: 12%), up
from EUR 119 million to EUR 126 million. The growth was primarily a
result of the significant rise in sales in China (up 22%,
currency-adjusted: 33%; Q1-Q3 2007: EUR 34 million, Q1-Q3 2006: EUR
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
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.
The full quarterly report and additional information on HUGO BOSS AG
are available on our website www.group.hugoboss.com.
If you have any questions, please contact:
Director of Communication
Phone: +49 (0) 7123 94-2375
Fax: +49 (0) 7123 94-2051
Head of Investor Relations
Phone: +49 (0) 7123 94-2552
Fax: +49 (0) 7123 94-2035