Press release on the full year results for 2017
Metzingen, March 8, 2018
HUGO BOSS: Strategic realignment is taking effect
Fiscal year 2017
· Currency-adjusted sales up 3%
· EBITDA before special items at prior-year level
· Dividend rises to EUR 2.65 per share
· Faster sales growth compared with 2017
· Sales to rise in all regions and distribution channels
· Operating profit to remain stable
“We achieved what we set out to do in 2017”, says Mark Langer, CEO of HUGO BOSS AG. “This year, we want to step up the pace of growth. The new BOSS and HUGO collections are being very well received by the market. Feedback from the BOSS Menswear and BOSS Womenswear presentations in New York was also very positive. Our strategic realignment is taking effect. Thus we are on the right track towards sustainable and profitable growth.”
HUGO BOSS grew currency-adjusted sales by 3% in fiscal year 2017. This growth was due essentially to sales in the Group’s own retail business, which outperformed expectations. Sales in the reporting currency totaled EUR 2,733 million, an increase of 1% on the previous year. With EUR 491 million, operating profit remained on prior year level and was hence in line with the forecast. The increase in sales was offset by investments in repositioning the BOSS and HUGO brands and the digital transformation of the business model. The strong euro also acted as a major drag on the operating profit.
HUGO BOSS expects sales growth to accelerate in 2018, with an increase in the low to mid single-digit range after currency adjustments. All regions are expected to contribute. The company expects an increase in its retail business in the mid single-digit range, with the wholesale business returning to growth. The change in the operating result (EBITDA before special items) in 2018 will probably lie in the range
of –2% to +2% compared with the prior year. Further investment in future growth, particularly the digital transformation of the business model, and negative currency effects will roughly offset the positive effect resulting from the expected sales growth.
For HUGO BOSS, 2018 will be another important stage in implementing the strategic realignment. Sources of growth will be the ongoing improvement in the hugoboss.com website, the renovation of around 150 retail spaces with a new store concept, the opening of HUGO stores in selected European major cities and additional personalized and digital services.
The Group expects additional stimulus in the second half of the year from the further development of its collections. The company presented the first highlights of BOSS Menswear at the New York Fashion Week at the start of February. Entitled “Sports Tailoring”, the collection swept aside the line between classic tailoring and casual sporty looks. The coming Fall/Winter 2018 collections have been positively received by wholesale partners, leading to further improvement in order trends compared with the Spring/Summer 2018 collection. This highlights the confidence of the Group’s partners in the new focus of BOSS and HUGO.
The Managing Board will discuss the financial results for fiscal year 2017 and the outlook for 2018 at today's annual press and analysts' conference. Further information is available at group.hugoboss.com. The annual report of HUGO BOSS
is also available online and offers many interactive features, including a video statement by CEO Mark Langer.