Hugo Boss had a 3 % turnover increase in its first quarter, but large expenses resulted in lower first quarter profits for the Germany company.
Growth and expansion main targets
Hugo Boss' first quarter turnover rose to 612.6 million euro, a 3 % increase compared to last year. Nevertheless, Hugo Boss could not present profit numbers, as it dropped 0.5 % to 81.6 million euro. Large part of the drop was because Hugo Boss spent more in the first quarter.
The company remains convinced that the investments will pay off in the results for the remainder of the year and that is why it has stuck to its 2014 forecast: a high single-digit turnover growth, even after exchange rate fluctuations, which would mean that the fashion company would do better than in 2013.
Hugo Boss grew most in Europe (+ 8 %), followed by a strong Asian growth (+ 7 % before exchange rates) while the American turnover dropped 2 %. To realize its ambitions, Hugo Boss will keep focusing on expansion, with another 50 stores worldwide by the end of the year.