Hugo Boss: Accelerated sales jump forecast

Hugo Boss has forecast accelerated sales growth and rising earnings for this year as the German luxury-clothing maker spends more to promote itself in Asia. Revenue adjusted for currency swings and earnings before interest, tax, depreciation and amortisation (Ebitda) would both increase by “high single-digit” percentages, the clothier said yesterday. On February 7, the maker of clothes, shoes, bags and accessories reported sales last year rose 4 percent to e2.43 billion (R36bn) and profit climbed 7 percent to e565 million. Boss, controlled by buyout firm Permira Advisers, in November last year delayed a key profitability target as it spends more to open stores and promote itself to more free-spending Chinese consumers. The company sees double-digit growth in its own retail business this year, while the wholesale channel is expected to remain “broadly stable”. Boss said that it forecast sales of e3bn next year, compared with the average estimate in a Bloomberg survey of e2.89bn. The company said that it would reach an Ebitda profit margin goal of 25 percent of sales in the “medium term”. Analysts on average expect Hugo Boss to achieve an Ebitda margin of 23.6 percent this year. Hugo Boss closed 1.5 percent down on Wednesday at e94.50. – Bloomberg