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Wednesday, 02 November 2011 |
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 German fashion house Hugo Boss confirmed its outlook for 2011 right after reporting forecast-beating third-quarter results on Thursday. The group released an 18% rise in third-quarter earnings before interest, tax, depreciation, amortization
and special items to 177 million euros ($242 million).
"We are very confident that we will reach our sales and earnings forecast for the year as a whole," Chief Executive Claus-Dietrich Lahrs said in a statement on Wednesday, adding this was based on strong growth in China and the United States. The company also said its bottom-line profit jumped by 30 percent to 119.7 million euros ($165 million) in the period from July to September on a 14-percent increase in revenue to 615 million euros.
Hugo Boss, majority owned by private equity investor Permira, also reported EBIT of 159.7 million euros and sales up 16 percent on a currency neutral basis to 615 million, ahead of the average analyst forecasts for 148 million euros and 597 million in a Reuters poll.
Therefore, Hugo Boss, known predominantly for its sharp suits, is aiming to grow sales by between 15 and 17 percent on a currency neutral basis and core operating profit by between 25
and 30 percent for 2011 as a whole.
After a positive opening for the German stock index DAX, preferred shares of Hugo Boss jumped 2 percent to 66.22 euros, also rocketed by the company’s China propelled revenue growth. At EUR 329 million, net working capital was 18% above the prior year level (September 30, 2010: EUR 278 million). Inventories grew by 23% to EUR 399 million (September 30, 2010: EUR 325 million). The increase is primarily attributable to the continued expansion of the own retail business. Adjusted for currency and consolidation effects, the increase amounted to 19%, they concluded.
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