Metzingen, July 2, 2014. HUGO BOSS will operate its store network in China and Macau fully on its own going forward via the acquisition of the remaining 40% equity stake in the joint venture from its long standing franchise partner Rainbow Group.
In July 2010, the Group had entered into a joint venture agreement with its long-time franchise partner Rainbow Group, holding a 60% stake. Since then, the joint venture entities have been fully consolidated in the consolidated financial statements. Thanks to Rainbow Group’s local market knowledge and sophisticated retail operations, the partnership has supported the HUGO BOSS business in China, which has more than tripled since 2009.
Based on the agreement reached, HUGO BOSS took over the remaining 40% stake from Rainbow Group effective June 30, 2014. As a result, the Group assumed full control over the 55 stores operated by the joint venture in Mainland China and Macau. In the full year 2013, these operations generated sales of EUR 94 million.
“Over the last few years, we have firmly established HUGO BOSS as one of the most highly recognized premium and luxury apparel brands in China”, commented Claus-Dietrich Lahrs, CEO of HUGO BOSS AG. “We are confident that the consolidation of our distribution activities in China will further elevate the quality of brand presentation, increase productivity and contribute to the strength of our operational platform in a market offering tremendous opportunities for HUGO BOSS.”
About HUGO BOSS in China
In 2013, HUGO BOSS generated sales of EUR 211 million in China (including Hong Kong and Macau). At around 9% of Group sales, China is the Group’s single biggest market in Asia and the fourth-largest market worldwide. At the end of 2013, HUGO BOSS operated 126 freestanding stores and shop-in-shops in the country. Regional and local headquarters are based in Hong Kong and Shanghai, respectively.
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