Premium brand Hugo Boss Group has increased its full-year sales forecast to 5%, the top end of expectations, after reporting double-digit sales growth in Europe, America and Asia in the third quarter suggesting a recovery in the luxury sector.
Hugo Boss has previously said it expected a sales increase of 3% to 5% over the year, while operating income is expected to rise by 20% due to improved profit margin.
Over the three months to September 30, the group saw net income rise 79% to €92.2m (£80.3m), compared to €51.5m (£44.8m) for the same period last year. EBITDA, before special items, was up by 42%.
Sales rose by 14% on a currency-neutral basis (19% in Euro terms) to €583m (£507.8m), with Europe up by 12%, America up by 13% and a 27% rise in Asia-Pacific.
Retail sales, including outlets and online, increased by 36% after currency adjustment, driven by a strong performance by its joint venture with the Rainbow Group in China. Wholesale revenues were up by 6% compared to the same quarter last year on the same basis.
Claus-Dietrich Lahrs, chief executive and chairman of the managing board at Hugo Boss, said: “Our growth in the third quarter is broad-based, with all regions, distribution channels and brands contributing to it. The results show that we have chosen the right path to achieve our goals for 2015.”
Group sales were up 2% on a currency neutral basis for the first nine months of the year, while revenue increase by 6% to €1.3bn (£1.1bn). Over the nine months, Europe posted a currency-neutral decline of 2%, although sales were up by 11% and 16% in America and Asia-Pacific respectively. Wholesale revenues were down by 8% but retail sales rose by 27%.