German menswear retailer Hugo Boss has seen sales growth accelerate in the fourth quarter of 2018, driven by Asia.
Comparable-store sales rose 4 per cent compared to the previous corresponding period and online sales rose 37 per cent, marking the fifth consecutive quarter of double-digit e-commerce sales growth.
Group sales also grew 6 per cent in the fourth quarter, adjusted for currency differences, to €783 million – compared to €735 million in the previous corresponding period.
On a comparable-store basis, Asia Pacific was the fastest growing region for the brand, with China achieving high single-digit currency-adjusted store-sales growth for the period.
Europe and the Americas saw comparable-store sales growth in the mid-single-digit and low-single-digit rates respectively, while sales in the business’ wholesale division increased 15 per cent.
The brand issued a preliminary full-year total sales figure of €2.79 billion for 2018 – an increase of 2 per cent compared to 2017 – with the “dynamic growth” of the brand’s retail business seen as the key contributor.
Hugo Boss expects operating income to remain flat at approximately €491 million – the same figure seen in 2017.
“We look back on a successful 2018. We increased our pace of growth and achieved our full-year targets, supported by a very good fourth quarter,” Hugo Boss CEO Mark Langer said.
The brand is to focus on sustainable growth and profitability this year, according to Langer, who notes that the new year will be focused on the execution of the business plan until 2020.
“We will personalise our offerings even more and accelerate important business processes. In doing so, we drive brand desirability and set an important milestone for achieving our mid-term targets,” Langer said.
This story first appeared on our sister site Inside Retail Australia.