Hugo Boss first quarter 2014 net income down 1%

Hugo Boss Group reports first-quarter 2014 net income down by 1% to 80.7 million euros, or 1.17 euros per share, from 81.6 million euros, or 1.18 euros per share, last year. Mostly due to reduced markdowns and above-average growth in the Group’s own retail business, the Group’s gross profit margin improved by 360 basis points to 65.4%.

For the quarter, Hugo Boss Group sales rose 6% in local currencies, corresponding to a sales growth of 3% to 613 million euros, from 594 million euros in the previous year. Europe contributed mainly towards this development, with the region posting a currency-adjusted sales growth of 8%, the company said. However, first-quarter wholesale sales were 6% below the prior-year quarter on a currency-adjusted basis.

Commenting on the performance, Claus-Dietrich Lahrs, chief executive and chairman of the Managing Board of HUGO BOSS said: “Thanks to a strong development in Europe, we were able to compensate for the challenging market environment, above all in North America and China. At the same time, our strategic focus on BOSS Womenswear resulted in double-digit growth rates in this part of our business. The investments in brand, distribution and logistics negatively affected our earnings development in the period, but will support sales and profit growth for the rest of the year and beyond.”

Hugo Boss, Spring Summer 2014 ad campaign