German luxury fashion house Hugo Boss has unveiled its financial report for the fourth quarter of the financial year 2016. Group sales declined 1 per cent on a preliminary basis and adjusted for currency effects in the reporting period.
In the review period, retail business sales (including online and outlets) improved by 4 per cent on a currency-adjusted basis. Sales in the wholesale business were down 13 per cent as against previous year in local currencies. The company’s revenues amounted to Euro 725 million, noting a dip of 3 per cent compared to prior year. On a comparable store basis, revenues decreased by 3 per cent.
In Europe, sales increased 2 per cent on a currency-adjusted basis mainly due to robust growth in the UK. In the Americas, sales were down 14 per cent in local currencies. However, the Asian business surged 5 per cent. In Mainland China, the fashion retailer achieved comparable store sales increases of 20 per cent adjusted for currency effects.
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“Fourth quarter results underline that we are on the right track. In China, we completed the turnaround in the second half of the year. In Europe, we held up well in a difficult market environment. We will continue to work intensively on implementing our strategic plans presented in November. We are confident that this will enable us to return to sustainable profitable growth,” says Mark Langer, CEO, Hugo Boss.
On a preliminary, non-audited basis, Group sales in the full year amounted to Euro 2,693 million, a decline of 4 per cent compared to the prior year. On a currency-adjusted basis, the decrease was 2 per cent.
