Hugo Boss expects good results in 2012 but is cautious about certain markets
German based Hugo Boss said Wednesday expect new record results this year, confident in its strategy of stores under its own control and the growing success of the brand outside Europe. Hugo Boss expects this year a rise in sales adjusted for currency effects “of up to 10%“, and “all regions and distribution channels will contribute,” said a statement.
In 2011 its sales rose 19% to almost 2.06 billion euros. They rose 15% in Europe, 24% U.S. and 34% in China. Hugo Boss has based its growth strategy on its stores under its own control. It plans to open fifty more in the world this year, and renovate the old.
Its EBITDA before exceptional items amounted to 469 million euros last year, up 34% year on year. And net income Group share reached EUR 285 million, up 53% year on year, confirming a provisional figure announced in early February.
In a recent interview to French daily Les Echos, Hugo Boss CEO Claus Dietrich Lars warned that 2012 will be a difficult year in Europe, especially Italy and Spain. The company’s strategic approach to counter the effects of the recession is to shift more toward directly operated stores, versus wholesale (multi-brand). In China, where Hugo Boss has been present for 30 years, the company is also shifting towards directly operated mono-brand stores, aiming to buy out all franchises by 2015.