April 26, 2007 02:02 ET

HUGO BOSS 1st Quarter 2007

METZINGEN, GERMANY -- (MARKET WIRE) -- April 26, 2007 --

Press Release

Successful first quarter of 2007 for HUGO BOSS:
Sales increase by 9% (currency adjusted: 12%)
EBIT improves by 13%
Net income increases by 18%
Metzingen, April 26, 2007. In the first quarter of the current fiscal year, HUGO BOSS AG increased sales by 9% to EUR 500 million (Q1 2006: EUR 459 million). On a currency-adjusted basis the sales increase of the international fashion group amounted to 12%.

BOSS Womenswear performed particularly well, continuing the upward momentum of previous periods to increase sales by 42% to EUR 62 million (Q1 2006: EUR 44 million). Earnings before interest and taxes (EBIT) for this segment rose from EUR 4 million to EUR 10 million, with the EBIT margin improving accordingly to 16% (Q1 2006: 10%). Net income rose to EUR 7 million (Q1 2006: EUR 3 million).

Also contributing to the upward sales trend of the HUGO BOSS Group were shoes and leather accessories, with a gain of 26% to EUR 58 million (Q1 2006: EUR 46 million), as well as the Group's own retail business, with an increase of 28% to EUR 52 million (Q1 2006: EUR 41 million).

Sales in Europe improved by a total of 11% to EUR 366 million in the first quarter of 2007 (Q1 2006: EUR 330 million). Sales in Germany increased by 7% to EUR 104 million (Q1 2006: EUR 97 million). HUGO BOSS thus once again far outperformed the relatively weak German fashion market.

On the American continents, sales had improved a total of 13% on a currency-adjusted basis by the end of the first quarter of fiscal 2007. The increase in the reporting currency amounted to 3% due to the weakening of the U.S. dollar against the euro. In the U.S., sales increased 17% in local currency and 7% in euros to EUR 54 million (Q1 2006: EUR 51 million).

Asia/other regions performed similarly in the first quarter of 2007. HUGO BOSS increased sales in this region by 11% in local currency and 4% in the reporting currency to EUR 48 million (Q1 2006: EUR 46 million).

Royalties of the Group performed extremely well, rising a total of 11% to EUR 10 million in the first quarter of fiscal 2007 (Q1 2006: EUR 9 million).

Earnings before interest and taxes (EBIT) improved by 13% over the prior-year period to EUR 99 million in the first quarter of 2007 (Q1 2006: EUR 87 million). Due to ongoing internationalization of HUGO BOSS' business activities, the Group's tax rate fell to 27.8% (Q1 2006: 31.5%). This led to an increase in net income of 18% over the prior-year figure to EUR 70 million in the first quarter of 2007 (Q1 2006: EUR 60 million).

Cash flow rose by 18% to EUR 83 million in the first quarter of the current fiscal year (Q1 2006: EUR 70 million), and free cash flow before dividends amounted to EUR -3 million (Q1 2006: EUR 24 million).

"In the first quarter of 2007, HUGO BOSS continued the positive trend of past fiscal years," commented Dr. Bruno Sälzer, Chairman of the Managing Board of HUGO BOSS AG. "We are therefore optimistic that we will be able to bring 2007 as a whole to a successful close."

The Managing Board of HUGO BOSS AG is forecasting currency- adjusted sales growth of 8-10% for the current fiscal year. Earnings before taxes are projected to increase by 12-15%.

Please see our website at for the 2006 Annual Report and the full report on the first quarter of 2007 as well as additional information on HUGO BOSS AG.

If you have any questions, please contact:

Philipp Wolff
Director of Communication

Phone:      +49 (0) 7123 94-2375
Fax:          +49 (0) 7123 94-2051

Christoph Löhrke
Head of Investor Relations

Phone:      +49 (0) 7123 94-2552
Fax:          +49 (0) 7123 94-2035

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