Preliminary Results 2018
Metzingen, January 22, 2019
HUGO BOSS records acceleration in sales growth –
Sales and earnings targets for 2018 achieved
- Currency-adjusted Group sales up 6% in the fourth quarter
- Retail comp store sales 4% above prior year
- Online business up 37%
Fiscal year 2018
- Currency-adjusted sales up 4%
- EBITDA before special items roughly on prior year level
- Final results to be published on March 7, 2019
“We look back on a successful 2018. We increased our pace of growth and achieved our full-year targets, supported by a very good fourth quarter,” says Mark Langer, Chief Executive Officer of HUGO BOSS AG. “We are convinced to grow sustainably and profitably in 2019 and beyond. The new year will entirely be focused on the execution of our business plan until 2022. We will personalize our offerings even more and accelerate important business processes. In doing so, we drive brand desirability and set an important milestone for achieving our mid-term targets.”
HUGO BOSS accelerated sales growth in the fourth quarter: on a preliminary basis, Group sales grew by 7% in the reporting currency (6% in local currencies) to EUR 783 million (Q4 2017: EUR 735 million). Both the Group's own retail business and the wholesale business recorded significant growth. Adjusted for currency effects, sales in the Group's own retail business grew 4% both on a comp store basis and in total, despite the prior year's high comparison basis. On a comp store basis, Asia/Pacific was once again the fastest growing region for HUGO BOSS. In particular, in China the positive trend continued. Here, the company achieved high single-digit currency-adjusted comp store sales growth also in the fourth quarter.
Currency-adjusted comp store sales in the Group's own retail business in Europe and in the Americas grew at a mid-single digit and low single digit rate, respectively. The Group's own online business grew by 37% currency-adjusted in the fourth quarter, thus at a solid double-digit rate for the fifth consecutive quarter. Sales in the wholesale business increased by 15% in local currencies. Besides double-digit growth in the replenishment business, which allows HUGO BOSS to react to short-term demand from wholesale partners, delivery shifts led to sales increases compared to the prior year. Also Great Britain and France, where total sales in the fourth quarter grew at double-digit rates each, benefited from this. Business in Germany remained stable in an overall ongoing challenging market environment. In the United States, HUGO BOSS achieved a mid-single digit sales increase in the fourth quarter. Comp store sales growth in the Group’s own retail business as well as higher sales with wholesale partners contributed to this development.
On a preliminary, non-audited basis, HUGO BOSS achieved sales of EUR 2,796 million for the full year. This represents an increase of 2% in the reporting currency compared to the prior year. On a currency-adjusted basis, the increase was 4%. The dynamic growth of the Group’s own retail business was the main contributor here. In its own online business, HUGO BOSS for the first time recorded more than EUR 100 million in sales. The Group anticipates that operating income (EBITDA before special items) in 2018 will roughly remain on prior year level (2017: EUR 491 million). The positive effects resulting from the increase in sales and a continued strict cost management were offset by investments in product quality, negative currency effects and investments in the digital transformation of the business model.
The Group will publish its final results for 2018 and its financial outlook for the new fiscal year on March 7, 2019, and will discuss it at the press conference. For financial analysts and investors, a conference call including a webcast will also be held on that day. On the day before, the Supervisory Board will resolve upon the dividend proposal for fiscal year 2018.
If you have any questions, please contact:
Dr. Hjördis Kettenbach
Head of Corporate Communications
Phone: +49 7123 94-83377
Head of Investor Relations
Phone: +49 7123 94-87563