Sales performance

Currency-adjusted Group sales up 3%

In fiscal year 2017, HUGO BOSS generated Group sales of EUR 2,733 million. Sales were therefore up 1% on the prior year in the Group’s reporting currency (2016: EUR 2,693 million). Currency effects due to the appreciation of the euro against most other currencies had a negative impact on Group sales in the reporting period. In local currencies, HUGO BOSS registered a 3% increase in sales year on year.

Sales by region

Currency-adjusted sales growth in all regions

In fiscal year 2017 all three regions posted sales increases after currency adjustment. The increase in sales in Europe including the Middle East and Africa was underpinned by improved local demand and a recovery in business with tourists. Great Britain in particular benefited from this, with sales growth in the high single-digits. The Americas saw a slight increase in sales. Growth in Canada and Latin America compensated for slight declines in the United States. Sales in the Asia/Pacific region benefited from the upswing in the Chinese market and were primarily driven by double-digit growth rates in mainland China. Sales and Profit Development of the Business Segments

Sales by distribution channel

Group’s own retail business grows by 5% on a currency-adjusted basis

Currency-adjusted sales in the Group’s own retail business (retail) grew by 5% in fiscal year 2017. All sales formats saw mid to high single-digit growth. Thus, the share of the Group’s own retail business in Group sales increased. On the basis of retail comp store sales, i.e. including retail space opened or taken over before December 31, 2015, sales in the Group’s own retail business rose by 1% year on year in the reporting currency. In currency-adjusted terms, this was an increase of 3%.

Decline in wholesale channel sales

Sales in the wholesale channel declined in fiscal year 2017 in the reporting currency and in local currencies. Following a lower order intake in the pre-order business, the replenishment business, which allows HUGO BOSS to react to short-term surges in business partners’ demand, also posted lower sales. Consequently, the share of the wholesale channel in Group sales diminished. This was mainly due to measures initiated last year for enhancing distribution in the American wholesale business and the weaker demand of local wholesale partners. In addition, the takeover of selling space previously operated by wholesale partners caused a shift in sales from wholesale business to the Group’s own retail business.

License business up 14%

Sales in license business increased in fiscal year 2017 in the Group’s reporting currency and in local currencies. The share of license business in Group sales remained the same compared to the prior-year period. In particular, the license income from fragrances saw a double-digit sales increase.

Sales by brand

Sales growth at BOSS and HUGO

The BOSS core brand particularly benefited from the double-digit growth in the athleisure offering, which in fiscal year 2017 was still sold under the BOSS Green brand line. BOSS businesswear and casualwear sales remained roughly at the prior-year level. Sales of HUGO increased in particular due to double-digit growth in casualwear, while businesswear also performed positively.

Sales by gender

4% growth in menswear adjusted for currency effects

Menswear benefited from the favorable performance of the BOSS and HUGO brands. The sales decline in womenswear is attributable to the BOSS brand and related to changes in the marketing and distribution strategy resulting from the strategic realignment which was not fully offset by growth in the HUGO brand. Group Strategy

Number of group ’s own retail stores

Slight decrease in the number of freestanding retail stores

In fiscal year 2017, the number of the Group’s own freestanding retail stores decreased by a net figure of three to 439 (2016: 442).

The closures particularly affected the sites that were included in the action plan drawn up in 2016 to ensure the sustained profitability of the store network. Individual stores with expiring leases were also closed. This was offset by 20 new openings. In some cases, this reflected site relocation within the same metropolitan area.

Including shop-in-shops and outlets, the total number of retail stores operated by HUGO BOSS worldwide in fiscal year 2017 rose by a net figure of 15 to 1,139 (2016: 1,124). The Americas and the Asia/Pacific region contributed to the increase in selling space.

Selling space productivity improves by 2%

The total selling space of the Group's own retail business rose by 1% to around 156,500 sqm (December 31, 2016: 154,500 sqm). In fiscal year 2017, selling space productivity in the Group’s own retail business thus rose by 2% to around EUR 11,100 per sqm (2016: EUR 10,900 per sqm).