German fashion brand Hugo Boss managed a 6 % turnover increase in 2014, reaching 2.57 billion euro. Mainly its own retail stores and its women collections have considerably grown over the past year.
It is the fifth straight year with turnover growth for Hugo Boss and that has helped meet its own expectations from November 2014. Its own stores have sold considerably better last year, thanks to an expanded store network, while its like-for-like turnover remained level. Its women collections have also outperformed other Hugo Boss divisions, helping grow its EBITDA 5 % to 591 million euro (565 million euro in 2013).
"In 2014, we demonstrated that we stay on course even in difficult market conditions. While the fashion industry stagnated or even shrunk in many markets, we have clearly grown,” commented CEO Claus-Dietrich Lahrs. “2015 will not become any easier in light of the many economic and political uncertainties, but we are confident it will be another growth year for HUGO BOSS.”
Full control over China
Hugo Boss has also divulged it will take full control over its Korean and Middle-Eastern activities, while it has also taken full control over its final Chinese franchise store. It will acquire 17 Korean franchise stores, while it will manage 21 Chinese franchise stores from April 2015. The move follows a buy-out of its Chinese partner, Rainbow Group, last year. In total, Hugo Boss now has some 130 stores in China.
Hugo Boss also seeks to build a Middle-Eastern distribution center, fully operational from January 2016 onward.