HUGO BOSS in the First Half of 2009

Thursday, 30. July 2009 10:02
Press Release


HUGO BOSS holds its ground in economic crisis
Significant rise in operating cash flow
Net working capital down 29%
Net debt reduced by 15%
Slight sales decline of 5%


Metzingen (Germany), July 30, 2009. By introducing a package of
measures very early on, HUGO BOSS has successfully reacted to the
emerging effects of the global economic crisis.

The initiatives taken at the end of last year include the
optimization of cost structures and improving and redesigning work
processes. In addition, the Company has focused on reducing the
complexity of its collection in the past six months. This was also
accompanied by a sustainable reduction of production and logistics
costs. A further key area was the ongoing expansion of directly
operated stores. Particularly in the growth regions of the world,
HUGO BOSS increased its presence with its own shops through
corresponding investments.

In the first half of the current fiscal year, HUGO BOSS generated
sales of EUR 788 million (H1 2008: EUR 831 million), a slight decline
of only 5%.

On the European market, HUGO BOSS recorded a drop in sales of 8% to
EUR 540 million against the backdrop of the difficult general market
environment (H1 2008: EUR 588 million).

Sales on the American continent continued to rise as a result of
positive currency effects. In the reporting currency, these sales
were up 4% to a total figure of EUR 148 million (H1 2008:
EUR 143 million). In local currencies, sales dipped by only 4%.

In the Asia/Pacific region, HUGO BOSS posted sales of EUR 79 million
in the first half of 2009, virtually unchanged year-on-year in Group
currency.

At EUR 21 million in the reporting period, license sales also
remained steady as against the previous year in spite of the effects
of the economic crisis on the premium and luxury goods market.

The internal performance indicator EBITDA was down 10% without taking
into account special items. This decline was due to a rise in
impairment losses on receivables and higher write-downs on
inventories. Thanks to the successful initiatives as part of the
structural adjustments, consolidated net income was down only
moderately to EUR 48 million in the first half of 2009.

The cash flow from operating activities was particularly encouraging,
rising significantly from EUR 29 million to EUR 154 million. This was
helped in particular by the 29% drop in net working capital.
Furthermore, net debt was down by 15% as against the previous year.
"The results for this first half of the year show that HUGO BOSS can
react quickly and flexibly to changes in the market and efficiently
implement the right measures," commented Claus-Dietrich Lahrs,
Chairman and CEO of the Managing Board of HUGO BOSS AG. "Thus, the
Group can and will hold its ground internationally in the current
turbulent environment."


The detailed report on the first half of 2009 and further information
can be found on the 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

Investor Relations
Phone: +49 (0) 7123 94-1326
E-mail: Investor-Relations@hugoboss.com


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

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