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HUGO BOSS AG — Earnings Release 2010
Mar 29, 2011
216_rns_2011-03-29_f6c54bf4-6deb-418e-a93f-4d0733088f27.html
Earnings Release
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News Details
Ad-hoc | 29 March 2011 07:24
HUGO BOSS AG: HUGO BOSS expects double-digit growth in sales and earnings for 2011
HUGO BOSS AG / Key word(s): Forecast/Change in Forecast
29.03.2011 07:24
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Today, HUGO BOSS AG is specifying its outlook for the 2011 financial year
as part of the publication of 2010 annual results.
After a successful start to 2011, the Group expects currency-adjusted sales
to grow at least 12%. All of the regions and distribution channels will
contribute to the gain. Supported by a further increase of the gross profit
margin, operating income (EBITDA before special items) is expected to rise
faster than sales and grow at least 15%.
Information and Explaination of the Issuer to this News:
HUGO BOSS AG can look back on a successful 2010 that was marked by new
record highs for sales and profits. The Group is expecting double-digit
revenue and earnings growth in 2011.
'We posted outstanding results in 2010 and have maintained this momentum in
the new year,' said Claus-Dietrich Lahrs, Chairman of the Managing Board at
HUGO BOSS AG. 'I am confident we will comfortably exceed last year's record
highs in 2011.'
Currency-adjusted sales rise 24% in fourth quarter
In the final quarter of 2010 currency-adjusted sales rose by 24%.
Calculated in euros, Group revenues grew 30% to EUR 422 million (2009: EUR
324 million). The improvement was bolstered by double-digit increases in
local currencies in every region (Europe +17%, Americas +20%, Asia/Pacific
+62%). Currency-adjusted wholesale sales were 11% higher compared to the
prior year. Revenues from the Group's own retail activities (including
outlets and online stores) increased by 36% in local currencies. The
first-time consolidation of the joint venture with the Rainbow Group in
China had a positive impact on this development from July 2010 onwards. The
gross profit margin rose 3.2 percentage points to 63.8% (2009: 60.6%) due
to the growing share of own retail sales, a consistent pricing strategy and
efficiency improvements in production and sourcing. EBITDA before special
items increased 64% to EUR 77 million (2009: EUR 47 million) as a result of
the higher sales and gross profit margin.
EBITDA before special items reaches EUR 350 million in 2010
In the year 2010 as a whole, HUGO BOSS Group sales were up 7% on a
currency-adjusted basis. In the reporting currency, revenues grew 11% to
EUR 1,729 million (2009: EUR 1,562 million). Every region contributed to
this trend: Europe recorded an increase of 2% in local currencies. Revenues
in the Americas and Asia/Pacific improved by 14% and 28% respectively.
While currency-adjusted wholesale sales were down 5%, the Group's own
retail revenues climbed 30%. Currency-adjusted comparable store sales were
9% higher. The gross profit margin increased by 5.2 percentage points to
59.4% (2009: 54.2%). The adjusted EBITDA margin grew 3.1% to 20.2% (2009:
17.1%).
Significant debt decline
As a result of the increased operating profit and a further decrease in net
working capital, the net financial position at the end of the year improved
by 47% to EUR 201 million (December 31, 2009: EUR 379 million).
Higher dividend proposed
For the 2010 financial year, the Supervisory Board and Managing Board of
HUGO BOSS AG agreed to propose the distribution of a dividend of EUR 2.02
per common share (fiscal 2009: EUR 0.96) and EUR 2.03 per preferred share
(fiscal 2009: EUR 0.97) to the Annual Shareholders' Meeting. The dividend
increase reflects the significantly higher profit in the last fiscal year
and the positive expectations for 2011.
Management forecasts double-digit growth in sales and profits
After a successful start to 2011, the Group expects currency-adjusted sales
to grow at least 12%. All of the regions and distribution channels will
contribute to the gain. Supported by a further increase of the gross profit
margin, operating income (EBITDA before special items) is expected to rise
faster than sales and grow at least 15%.
Further information
The 2010 Annual Report and further information on HUGO BOSS AG can be found
on our website at www.group.hugoboss.com.
Should you have any questions, please contact:
Dr. Hjördis Kettenbach
Head of Corporate Communication
Phone: +49 (0) 7123 94-2375
Fax: +49 (0) 7123 94-2051
Dennis Weber
Head of Investor Relations
Phone: +49 (0) 7123 94-86267
e-mail: [email protected]
29.03.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: HUGO BOSS AG
Dieselstraße 12
72555 Metzingen
Deutschland
Phone: +49 (0)712 394-0
Fax: +49 (0)712 394-2014
E-mail: [email protected]
Internet: www.hugoboss.com
ISIN: DE0005245534, DE0005245500,
WKN: 524553, 524550,
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München
End of Announcement DGAP News-Service