German Fashion Brand Hugo Boss recently released its first quarter results for 2018. It highlighted the company’s sales growth during period as well as its strong growth in China and the America. This helped the fashion house gain 5 per cent in currency adjusted terms henceforth.
However, the brand also recorded declines on its home country after failing to have a better appeal to its younger consumers.
The fashion company indicated 650 million euros ($780 million) for its sales. The data somehow missed the estimated value 654 million for the quarter. with a currency-adjusted rise of 12 percent in Asia/Pacific and 7 percent in the Americas.
The Earnings before interest, taxation, depreciation and amortization (EBITDA) of Hugo added 99 million in the period. This surpassed the market expectation of just 97 million. The data included the effects of the depreciation of currencies outside the eurozone.
Hugo Boss Sales
As mentioned above, the company did face some significant headwinds in the European marketplace. Regardless of this, Hugo successfully rebounded with positive sales trends in other regions. The company took this as a strong start for 2018.
In Asia Pacific and the Americas, Hugo Boss generated 12 and 7 per cent respectively during the quarter.
The Chinese market indicated a 11% increase which was mainly driven by continued growth in Mainland China. Solid figures from the market of Hong Kong and Macau factored to the general increase as well.
However, sales in Europe only added 3 per cent. The sector had €650m for the quarter with varying results from each of its markets. To cite, UK’s sales recorded a 12 per cent growth during the period whereas Germany’s records faced a 5 per cent decline.
Furthermore, the own retail sales of the company noted a 8% increase on a currency-adjusted basis for the quarter. On a comp store basis, the sector surged by at least 7% in line.
“The strong increase in the group’s own retail business shows that our new collections are being well received by customers,” Hugo Boss CEO Mark Langer, told reports. “Our investments in the quality of our products and the desirability of our brands are therefore paying off.”
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