Hugo Boss has projected a return to sales growth in 2010, but said that a decline in 2009 pre-orders will continue to hamper the menswear label’s sales performance in the first half of the year.
Group sales dropped 7% over the 2009 year to €1.56bn (£1.37bn). The European division recorded a turbulent year with sales down 11% to €1.04bn (£918.6m).The performance contrasted with Hugo Boss’ performance in the USA where sales rose 4% to €233m (£196.8m) and in Mexico by 4% to €27m (£23.8m). In the Asia Pacific region sales grew 2% to €165m (£145.6m).
EBITDA at Hugo Boss fell back 6% to €270m (£238.2m) while Hugo Boss net profit fell back 7% to €104m (£91.7m), which was in part due to the extraordinary expenses related to a company strategic realignment over the period, which amounted to €104m (£91.7m).
Hugo Boss said the company is expecting an increase in sales in 2010 and said that EBITDA is expected to increase more than sales over the year.
Hugo Boss said it expects the economic climate to gradually stablise in the current fiscal year.
Hugo Boss added in a statement: “The sales trend for the first half of the year will be muted to begin with, as the wholesale business is still being affected by the fall in pre-order volumes from the recession year 2009. However this will stabalise again in the second half of the year.”
Hugo Boss chief executive Claus-Dietrich Lahrs said: “We see this as a verification of our growth strategy. We are optimally positioned for the future as a result of the sharpened profile of our brands and collections, the consistent expansion of our own retail stores, the selective gearing of our product range to the retail areas and the concentration on the growth markets of America and Asia and will return to our growth path again in the current year.”