At €106 million, EBITDA before special items remained virtually unchanged compared to the prior-year period. Continued investment in product quality, digital transformation of the business model and negative currency effect has curbed the profit development.
EBIT was below the prior-year level, mainly due to the non-recurrence of other operating income recorded in the previous year. Following an improved financial result, the decline in the Group’s net income was lower as compared to EBIT.
At the beginning of July, Hugo presented its Spring/Summer 2019 collection at the Berlin Fashion Week. Titled ‘Mixmasters’, Hugo reflected Berlin’s eclectic street style and club scene with striking neon colours, lightweight fabrics and contrasting details.
The renovation of existing retail stores and the cross-channel integration and digitisation of the group’s own retail activities were the focus of investment activity in the second quarter.
Overall, Hugo Boss recorded currency-adjusted sales growth of 5 per cent in the first six months of fiscal year 2018. At €205 million, EBITDA before special items was unchanged over the prior year. On the basis of these results, Hugo Boss confirms its outlook for the full year. The group continues to expect currency-adjusted sales growth in the low to mid single-digit range. In addition, EBITDA before special items is expected to develop within a range of –2 to +2 per cent compared to the prior year.
“Our strategic realignment is taking effect. We are right on track. The sales growth in the second quarter speaks for itself: we achieved almost double-digit growth in Europe and were also able to continue our recovery in the challenging German market. Our collections are very well received at home and abroad. This is reflected both in the positive feedback from our wholesale partners and in the robust momentum of our retail business. The performance of our online store is particularly encouraging. I am therefore very confident that we will achieve our targets for the full year,” said Mark Langer, CEO of Hugo Boss. (RR)
Fibre2Fashion News Desk – India