German fashion group Hugo Boss's fourth quarter turnover grew 5 % to 684 million euro. All in all, it managed a record turnover in its previous fiscal year, thanks to its own retail activities.
Record year after excellent fourth quarter
The quarterly turnover grew 3 % excluding exchange rate fluctuations: particularly the Asian performance was excellent (+ 5 %), followed by growths in Europe (+ 4 %) and America (+ 1 %) growth. Its own boutiques did exceptionally well in the fourth quarter with a 6 % turnover increase, while its wholesale activities remained pretty much level.
The full year turnover grew 6 % to 2.572 billion euro: European yearly turnover grew 7 % thanks to double-digit growth in Great Britain, while Asia added another 7 % thanks to a huge advancements in the Chinese market. Finally, American sales also grew 4 %. A strong 12 % sales surge for its own retail activities helped Hugo Boss achieve a record year, while its wholesale activities dropped 1 %. Particularly its women collection BOSS Womenswear was very popular (+ 18 %).
Asian and Middle-Eastern expansion
Despite the "shaky economy", CEO Claus-Dietrich Lahrs is quite ambitious when it comes to 2015: he forecasts a "mid-single-digit rate" of turnover growth, which means somewhere near a 5 % turnover growth. On top of that, he seeks a 5 - 7 % operating income increase.
New stores in Asia and the Middle-East should help achieve that goal and should also compensate for the "substantial slow-down" in European growth. "We will expand our market position in the luxury and women's clothing markets, while we strengthen our own retail network with an omnichannel approach", he said.