Hugo Boss holds its own: gains only 2% more in 2018 and grows by 2.3%

Hugo Boss holds its own in 2018. The German luxury company closed the last fiscal year (ended on December 31) with a net profit of 236 million euros, 2.1% more than in 2017. The group explained that its result has been affected by a number of investments to guarantee the sustainable growth of the group.

The company’s sales grew by 2.3% in 2018, to 2.79 billion euros. Hugo Boss’ ebitda stood at 489 million euros, 0.4% less than in 2017.

By regions, Asia-Pacific is where the group has registered a better evolution of its income, with an increase of 3.5%, up to 410 million euros. Meanwhile, in Europe, Hugo Boss’ revenue had a similar performance, with a rise of 3.2%, to 1.73 billion euros. On the other hand, the group’s sales in America decreased, with a fall of 0.5%, to 574 million euros.

Hugo Boss closed 2018 with a fall of 0.4% in its ebitda

By distribution channels, Hugo Boss improved its retail revenue by 2%, to 1.76 billion euros. Within this division is included the online business of the group, which fostered its sales by 40% in 2018, to 110 million euros. The group’s own stores, however, reduced its revenue by 0.6%, to 1.09 billion euros. Sales at Hugo Boss’ outlet stores grew by 2.1%, to 562 million euros.

The wholesale business of Hugo Boss rose by 3.2% in 2018, to 952 million euros, while the license business of the group reduced its revenue by 3.8%, to 76 million euros in the last fiscal year.

By brands, Boss achieved a growth of 3.6% in 2018, to 2.42 billion euros, while the brand Hugo drop by 5.7% its revenue in the same period, to 374 million euros.

After publishing the results, the company has drawn up a new roadmap until 2022 based on establishing itself as a global premium brand. In addition, the group expects to record an annual growth of between 5% and 7%. Specifically, Hugo Boss plans to continue boosting its e-commerce platform sales, improving the revenue in its own stores, strengthening its growth in the Asia-Pacific region and redirecting the sales of the Hugo brand.