Hugo Boss shows confidence

Wednesday, 19 March 2008
After several personnel changes on the Managing Board, Hugo Boss is feeling confident about its future growth. To demonstrate their positive spirit, the Hugo Boss Managing Board and Works Council have sealed a comprehensive workplace agreement with the support of the Supervisory Board. Now that negotiations have been successfully completed, the company is responding to the press coverage of the past few days.

Joachim Reinhardt, Chief Financial Officer of Hugo Boss stated: “The strategic orientation of the Group remains unchanged. The proposed dividend payment will not constrain the financial flexibility needed by the company to conclude acquisitions and generate sustained organic growth.”

Which has been confirmed by the Chairman of the Works Council, Antonio Simina: “The Works Council, the Managing Board and the majority shareholder Permira enjoy a constructive working relationship and there is consensus on the strategy that the Group will be pursuing in the future. From the perspective of the Works Council, we are particularly pleased with the workplace agreement and the intention to create additional jobs.”

Earlier this month, the personnel committee of the supervisory board of Hugo Boss and Dr. Sälzer announced that at the end of February of this year Dr. Sälzer will leave as member of the board of management of the company. The separation was caused against the background of different views on the further business policy of the company.

According to the 2007 financial statements, the fashion group increased sales in the past fiscal year by 9% from EUR 1,496 million to EUR 1,632 million. Earnings before interest and taxes rose by 19% to EUR 220 million compared to EUR 184 million in 2006, and net income increased by 20% to EUR 154 million.

Image: Hugo Boss

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