German fashion brand Hugo Boss has managed a 9 % turnover growth in the first quarter, although exchange rate fluctuations (mostly the strong dollar) have lowered that growth to 3 %. Hugo Boss expects full-year turnover to keep up the same pace of growth.
Only drop in China
The company's turnover reached 668 million euro in the first quarter with positive results in almost every market: Europe grew 3 %, North and South America 2 % and Asia/Pacific 1 %. Only China failed to follow suit and dropped 3 % because of the slower economic growth.
"The apparel industry is currently feeling the effects of strong consumer restraint in Europe in particular. HUGO BOSS coped well with this difficult environment," CEO Claus-Dietrich Lahrs said. "We are therefore continuing to strongly invest in brand presentation this year. We are convinced that we will return to stronger growth in the next few quarters."
Hugo Boss's retail branch managed a 6 % turnover increase, excluding exchange rate fluctuations. The company's online sales grew 14 % thanks to the successful relaunch of Hugo Boss' website. The company currently has 1,060 stores, and aims to open another 50 new stores this year.