Hugo Boss shares were trading higher Tuesday, after the luxury fashion group reported fourth-quarter sales and earnings above expectations. Online and US stores sales were the biggest improvements for the retailer.
By 1045 BST, Hugo Boss shares were trading 3.40% higher at €75.44. That’s almost 5 cents higher than where they began 2018. But the stock price remains well below its peak of €120 per share achieved in April 2015.
Hugo Boss online sales surge
Fourth-quarter, currency adjusted sales, grew 5% to €735 million, from €725 million in the same period a year earlier, for the luxury fashion retailer. Online sales, meanwhile, jumped 42% over the same period, Hugo Boss figures showed.
Growth came from own store sales as the company realigned its strategy by closing some stores and accepting a slower wholesale performance.
“We achieved our goals for 2017”, said Hugo Boss AG CEO, Mark Langer. “The final quarter was particularly pleasing. The strong development in own retail shows that we are on the right path with the changes we are making to our collections and stores.”
“We strive to carry the momentum gained in the last months into 2018. Our online business is now on track, too, and will make a sustainable contribution toward the growth of the company,” Langer added.
The results also showed double-digit fourth-quarter sales growth in the US of 11%, while the Hugo Boss sales performance in China and Great Britain improved, the luxury retailer reported.
Full-Year results due in March
While Hugo Boss won’t publish its full year results for another couple of months, the Q4 details included a preliminary full-year sales figure of €2.733 billion. If the final, audited results confirm that figure, it would be a 1% gain from the previous year’s performance.
Hugo Boss adds that it anticipates final full-year earnings for 2017, after adjustments to be similar to 2016 and inline with its previous outlook.