Feb 7, 2014
Hugo Boss says confident for 2014 after fourth-quarter profit jump
Feb 7, 2014
German fashion house Hugo Boss said it was confident for 2014 after reporting a 17-percent rise in fourth-quarter core profit.
"We have set ourselves the target to grow faster than last year and to outperform our industry," Chief Executive Claus-Dietrich Lahrs said in a preliminary results statement released on Friday.
The company on Friday reported fourth-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 157 million euros ($213.5 million) on sales of 649 million euros, in line with expectations.
That enabled it to reach its 2013 goals, with sales up 6 percent and profit up 7 percent. It had been aiming for an increase of 6-8 percent in sales and profit.
Net financial liabilities more than halved to 57 million euros from 130 million one year ago.
"All in all good news," said DZ Bank analyst Herbert Sturm, keeping a 'Buy' recommendation on the stock.
Lahrs said the group would continue to increase its own retail business. The group has been moving away from selling its clothes through other retailers, to running its shops itself.
The investment in its own stores and marketing, plus slower luxury spending in China, means Hugo Boss last year postponed its 2015 target to reach a 25 percent EBITDA margin.
Hugo Boss will release full annual results and an outlook for 2014 on March 13.
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