Hugo Boss posts record results, raises 2011 targets

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German fashion house Hugo Boss raised its 2011 earnings targets Tuesday after posting record 2010 results that were boosted by a very strong fourth quarter.

Hugo Boss now expects currency-adjusted sales to gain at least 12 percent this year, along with a rise in core operating profit of at least 15 percent, a statement said.

"All of the regions and distribution channels will contribute to the gain," it added.

Up till now, the company had forecast at least seven percent higher sales and and non-specified but superior increase in earnings before interest, taxes, depreciation and amortization (Ebitda).

Last year, Hugo Boss bounced back from a crisis with its best results ever, including an 11 percent jump in sales to 1.73 billion euros ($2.4 billion) and a net benefit that soared by 82 percent to 189.2 million euros.

Ebitda before exceptional items was 31 percent higher at almost 350 million euros, and the group will propose a doubling of its dividends, to 2.02 euros for ordinary shares and 2.03 euros for preferential ones, the statement said.

The last quarter of 2010 was a particularly good one for Hugo Boss, with sales gaining 30 percent from the same period a year earlier to 422 million euros and a seven-fold increase in net profit to 34 million euros.

The brand makes most of its sales in Europe but is progressing rapidly in both North and South America and especially in the Asia-Pacific region.

© 2011 AFP

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