Hugo Boss UK defied the brand’s global struggles to post a 23% increase in operating profits for 2015.
The company’s global chief executive Claus-Dietrich Lahrs resigned in February after a profit warning predicted a double digit fall in operating profits for its global operations.
But the picture in the UK is much more positive. Turnover increased to £219m in the year to December 31 2015, up from £193m in 2014, while operating profit hit £29.8m, compared to £17.6m in the previous year. The business put the improving profits down to increased focus on KPIs, “product excellence” and tight management of overheads across the 12-month period.
Hugo Boss said an increased focus on directly-owned stores was another reason for increased profitability. The business invested in four new UK stores during the year, opening in Birmingham’s Mailbox shopping centre; Manchester and Stansted airports; and in Ashford. Subsequently the average number of employees grew from 841 to 880 in 2015.