Hugo Boss reports strong sales in Asia-Pacific
German menswear retailer Hugo Boss has seen sales growth accelerate in the fourth quarter of 2018, with comparable store sales up 4 per cent compared to the previous corresponding period and online sales up 37 per cent, the fifth consecutive quarter that e-commerce sales have grown in the double digits.
Group sales also grew 6 per cent in the fourth quarter, adjusted for currency differences, to $1.24 billion (€783 million) – compared to $1.17 billion (€735 million) in the previous corresponding period.
On a comparable store basis, Asia Pacific was the fastest growing region for the brand, with China achieving high single-digit currency-adjusted store sales growth for the period.
Europe and the Americas saw comparable store sales growth in mid single-digit and low single-digit rates respectively, while sales in the business’ wholesale division increased 15 per cent.
The brand issued a preliminary full-year total sales figure of $4.46 billion (€2.79 billion) for 2018 – an increase of 2 per cent compared to 2017 – with the “dynamic growth” of the brand’s retail business seen as the key contributor.
Hugo Boss expects operating income to remain flat at approximately $783.2 million (€491 million) – the same figure seen in 2017.
“We look back on a successful 2018. We increased our pace of growth and achieved our full-year targets, supported by a very good fourth quarter,” Hugo Boss chief executive Mark Langer said.
The brand is to focus on sustainable growth and profitability in 2019, according to Langer, who notes that the new year will be focused on the execution of the business plan until 2020.
“We will personalise our offerings even more and accelerate important business processes. In doing so, we drive brand desirability and set an important milestone for achieving our mid-term targets,” Langer said.
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