Hugo Boss profits drop 9% despite sales growth
By Ben Stevens - Apr 13th, 13:18
Hugo Boss has revealed hike in sales but a drop in profits in its annual financial results.
The retailer saw a 12 per cent rise in sales to £245.2 million in the year to December 31.
Retail sales also jumped by 14 per cent as wholesale rose a further seven per cent.
The increase in wholesale sales has seen a split of 74 per cent and 24 per cent between its retail and wholesale arm respectively.
Despite increasing sales, profit dropped by nine per cent to £20.5 million.
This comes as the German fashion retailer opened one new London store, six new concessions and five new outlets across the UK during the last year.
Thirty-three new staff were also recruited, bringing the total to 931.
Last year the company presented a new strategy to targeting more sustainable profit growth. This includes focusing on the core Boss line alongside the budget line Hugo, retailing at around 30 per cent less.
Furthermore, Boss Orange and Boss Green labels will be integrated into the core range as the retailer drops them as independent brands.
“General retailing conditions in the UK were challenging throughout 2016, with consumer uncertainty due to the current economic climate and the UK’s decision to leave the European Union,” Hugo Boss UK managing director Stephen Born stated.
“However, the company experienced a temporary uplift due to increased overseas visitors taking advantage of the favourable exchange rate of the pound sterling.” All content copyright Retail Gazette. All rights reserved
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