HUGO BOSS 3rd Quarter 2008

Thursday, 30. October 2008 09:36
Press Release


HUGO BOSS increases sales by 6% after nine months of 2008
Expansion in growth markets pays off


Metzingen, October 30, 2008. Against the backdrop of an increasingly
difficult global economic situation, the HUGO BOSS Group increased
sales in the first nine months of the current fiscal year. 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.

In the first nine months of 2008, in the region of Asia/Other
Regions, HUGO BOSS sales increased by 29% in local currency and by
22% in the reporting currency to EUR 153 million (Q1-Q3 2007: EUR 126
million). Development in the People's Republic of China was
particularly pleasing, with sales growth of 35%, emphasizing its
importance as a growth market for the Group.

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.

In the third quarter of 2008, the EBIT at EUR 199 million was down 8%
against the previous-year figure of EUR 218 million. Adjusted for the
effects from the change to the Managing Board and one-time
consultancy expenses, EBIT decreased by 1% to EUR 216 million. As a
result of this and due to higher interest expenses, Group earnings
declined by 17% to EUR 128 million (Q1-Q3 2007: EUR 153 million). At
EUR 92 million, operating cash flow was by 35% significantly above
the value of the previous year (Q1-Q3 2007: EUR 67 million).

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. In the context of a considerable decline of retail
sales in important regions during the second half of 2008, the HUGO
BOSS Managing Board expects that the currency-adjusted sales growth
for the whole of fiscal 2008 will be at the lower end of the previous
6-8% guidance range. Based on the current market assessment, EBIT
before one-time effects is expected to be slightly below the level of
the previous year, thus achieving a value between EUR 210 and 220
million.


The consolidated Report on the Third Quarter of 2008 as well as
further information can be found on our website
www.group.hugoboss.com.


Please direct any queries to:

Philipp Wolff
Director of Communication
Phone: +49 (0) 7123 94-2375
Fax: +49 (0) 7123 94-2051

Nicole Besemer
Director of Investor Relations & Treasury
Phone: +49 (0) 7123 94-2478
Fax: +49 (0) 7123 94-2035


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

View document

View document
Related Links: 
Author:
Hugin
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.