Hugo Boss has sold 13 % more last quarter, but that growth comes at a high price. Analysts and investors are disappointed by the results, as they continue to require heavy investment.
Expensive momentum
In the fourth quarter, Hugo Boss achieved 1.18 billion euros in sales. European consumers hesitated, but there was robust growth in North America and Asia, where sales even rose by a third – mainly thanks to new customers. For the full year, turnover climbed from 3.65 billion euros to 4.2 billion.
Gross profit (EBIT) rose by over 20 % to 410 million euros, but analysts still find the performance disappointing. Not only did they hold higher expectations, they also feel that Hugo Boss requires a lot of continued investment to maintain momentum. They refer to the substantial marketing expenditure, but also to the plans to expand the distribution centre and renovate the head office. For this, the German brand is allocating 200 million euros.
