SOURCE: HUGO BOSS AG

March 21, 2007 04:44 ET

HUGO BOSS: Financial statements for 2006

METZINGEN, GERMANY -- (MARKET WIRE) -- March 21, 2007 --



Press Release

HUGO BOSS: Financial statements for 2006
Sales up by 14%
Net income grows by 19%

Metzingen, March 21, 2007. The Managing Board of HUGO BOSS AG announced the final figures for fiscal 2006 at today's annual press conference in Metzingen: Sales of the HUGO BOSS fashion group rose by 14% (adjusted for currency: 14%) to EUR 1,496 million (2005: EUR 1,309 million).

BOSS Womenswear, which increased sales by 69% to EUR 162 million (2005: EUR 96 million), played a key role in the encouraging sales trend, as did the shoes and leather accessories product line, which was up 28% to EUR 151 million (2005: EUR 118 million). Another major contribution to the positive sales trend was made by the accelerated expansion of sales via the Group's directly operated stores, with 65 new locations leading to an increase of 39% to EUR 192 million (2005: EUR 138 million).

Earnings before taxes improved by 13% to EUR 184 million (2005: EUR 163 million). Net income increased by 19% to EUR 129 million (2005: EUR 108 million). Cash flow rose by 21% to EUR 186 million (2005: EUR 154 million). Free cash flow before dividends decreased to EUR 60 million (2005: EUR 107 million) due to high investment levels in fiscal 2006 and a high volume of shares bought back under the share buyback program.

"The HUGO BOSS Group again achieved record-level sales and earnings in fiscal 2006, continuing the successful trend of previous years. The three growth areas of women's fashions, shoes and leather accessories, and directly operated stores have once again made a significant contribution to this encouraging trend. We are therefore optimistic that we will evidence considerably stronger growth than the overall world fashion market again this year," comments Dr. Bruno Sälzer, Chairman of the Managing Board of HUGO BOSS AG, with respect to the outlook for fiscal 2007.


Further information on HUGO BOSS AG can be found on our website at www.group.hugoboss.com.


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

BPK 21 March 2007: http://hugin.info/131370/R/1113209/202618.pdf


Copyright © Hugin ASA 2007. All rights reserved.

Contact Information