BOSS Hugo Boss Selection: Luxury Defined The joys of luxury, can you feel them as you stride around in a Boss Selection Super 150 suit? The German luxury clothing line was established in Metzingen in 1923. Its beginnings were rather dark as the company was involved in clothing the Third Reich. Officers, troops and the dreaded SS were clothed in Hugo Boss’s suits. The connection lasted even after WWII ended in 1945, unfortunately Mr. Boss died in 1948. If was not until 1953 that the clothing line once again gained notoriety when it presented its first suit for menswear. Years later the company has been at the pinnacle of luxury wear for men and women. The brand has become most recognizable by its athletic fit suits, and shirts. The Brand carries separate labels of clothing known as Hugo, Boss Black, Boss Green, Boss Orange, and Boss Selection. The Hugo label, which is limited to only a few stores in the U.S.A, carries clothing that is trendy and designed for individuals seeking to express their personal style. The Boss Black label carries clothing for a more casual elegance. Classic slim fitting pants including virgin wool slacks, and tamed accented sport shirts recognize the style. You will also find the most superior form fitting dress shirts, and the large variety of colors is unmatched. Dress ties cover a large degree of designs and colors, ranging from conservative to peacock. The Boss Green label is known for its sportswear. Clothing includes sweatpants, sweatshirts, sweat wicking shirts, climate wear, and its comfortable athletic fit. The Boss Orange label conjures images of youth, and style. The label is known for its unique and energetic designs. Slim fit jeans, youthful designed t-shirts, stylish jackets, eye catching leather sneakers, and innovative sweatshirts make this label a favorite with stylish men. Boss Selection is the top of line, most luxurious and custom fit line that Hugo Boss has the pleasure to create. The line is most well known for its finest fabrics producing some of the most soft to the touch and lightweight suits in the world. The super 120, 140, and 150 suit is synonymous with this line. The number describes the stitches per one inch of fabric. The line also carries its first fragrance; the scent is light and recognized as fresh aquatic notes. To see Hugo Boss’s complete line and get a glimpse of the fall collection visit the website. New talent at Hugo Boss, strong Q1 sales German fashion brand Hugo, a subsidiary of Hugo Boss AG, has announced the appointment of two new design talents. Eyan Allen will be creative director while Bruno Pieters will be art director, replacing creative director Volker Kaechele, who quit the company in December. The structure of a creative director and an art director is new to the label, which was established in 1993, with both Allen and Pieters starting on 1 June. Allen will be responsible for the coordination of the collection and the running of the creative team, while Pieters will act as external consultant for the brand, responsible for the design and strategy of the collections. He will continue to run his own signature label in Antwerp. Meanwhile, the German fashion group announced strong first-quarter earnings, which were boosted by an excellent performance of its women’s wear division as well as strong sales of shoes and leather accessories. Pre-tax profits rose 13 percent to €99 million on sales up 9 percent to €500 million, with net income up 18 percent to €70 million. Hugo Boss said the women’s wear business performed “particularly well”, with sales gaining 42 percent to €62 million. Shoes and leather accessories sales jumped 26 percent to €58 million, contributing to significantly to overall group results, as did the 28 percent rise in retail sales. European sales gained 11 percent to €366 million. The group said sales from its directly owned stores made a “crucial” contribution to the strong performance during the quarter. In Germany, sales were up 7 percent. In other European markets, sales rose 13 percent to €262 million. Sales in the UK rose 12 percent to €34 million. Meanwhile, sales in the Americas rose 13 percent, while sales in Asia and “other regions” climbed 11 percent. Swarovski subsidiary wins Hugo Boss license Leading crystal manufacturer Swarovski has inked a licensing agreement with fashion house Hugo Boss for the creation of a jewellery line. Swarovski’s wholly owned subsidiary Amazar Holding was awarded a six-year licensing agreement with the German fashion house. It will produce and globally distribute a jewellery line for men and women, which will hit Hugo Boss stores, exclusive department stores and select jewellery stores from July 2008. Hugo Boss will be responsible for the designs and the collections will be marketed under the Boss name. Amazar Holding was founded last year for the express purpose of developing strategically important new business outside the Swarovski brand’s core activities. “Swarovski intends to double turnover to €3 billion by 2012 and was looking for a way to grow the business without diluting the Swarovski brand name,” says Bernadette Larcher, director of International PR for Swarovski. “Establishing Amazar Holding will allow the company to exploit new business opportunities through its own projects and licensing agreement. The licensing agreement with Hugo Boss is the first deal for the holding company and we are extremely pleased with such a good match.” Other ventures and ideas are still in the evaluation fase. “We are working on a case by case basis. It is early days yet,” Larcher concluded. “Our co-operation with Hugo Boss will be characterized by the highest levels of innovation and quality,” said Daniel Cohen, member of Swarovki Crystal Business’s Executive Board and President of the board of Amazar Holding. “With these same standards, Amazar Holding AG will continually develop creative new areas of business and will do it with the necessary speed. In order to develop these international activities with decisiveness, flexibility and consistency, the structure of Amazar Holding AG is well suited to be used as the key driver in their implementation.” Hugo Boss growth across the board German fashion group Hugo Boss saw sales for the first nine months of the year gain 14 percent to €1,216 million. Boss Womenswear performed particularly well, with sales soaring 70 percent to €127 million, up from €74 million during the same period last year. Shoes and leather accessories rose 35 percent, while group retail sales jumped 43 percent. European sales for the group were up 14 percent to €863 million, with sales in the home market of Germany gaining 11 percent to €278 million. Herewith, the group managed to outperform the German retail market. US sales rose 17 percent, despite a difficult consumer market. Meanwhile, income before interest and tax rose 13 percent to €188 million, while net income increased 17 percent to €133 million. Cash flow gained 17 percent to €173 million. Group royalties amounted to €28 million, while fragrance royalties gained 4 percent, and royalties from watches and eyewear dipped slightly due to a change of licensee for these products. Gross margins improved by one percentage point, thanks to increased sales via directly operated stores. The company continued to open directly owned stores during the period. The group’s Managing Board expects sales for the full year to increase 12 to 14 percent over the previous year, with proportionate income growth. Furthermore, it anticipates “new records in sales and earnings” for the year. Hugo Boss pulls out of Pitti Uomo Italian menswear tradeshow Pitti Uomo, once the must-see of men’s forward fashion, is to lose one of its key brands– Hugo Boss. Hugo Boss, which traditionally has the biggest and best stand, has said that Pitti Uomo has become less relevant to the company as it continues to develop into more of a lifestyle brand. A spokesman for Boss told Drapers: “Pitti is a very well organized show, but we have been growing our womenswear and accessories business in recent years. This means our showrooms are a more appropriate platform to showcase the full ranges.” Hugo Boss has always been a major draw for buyers to attend Pitti, and visitors are wondering if other major brands will soon follow suit. Pitti Uomo organizers have said they did not expect Hugo Boss’ departure to affect the future of the show. Jonathan Rhys Meyers in Hugo Boss ads After bagging the contract to model for Versace for its autumn/winter menswear range, ‘Bend It like Beckham’ star Jonathan Rhys Meyers will now front Hugo Boss’ latest campaign. Meyers is all set to appear in an advertising campaign that aims to boost the Hugo Boss fragrance franchise in the US, which to date has not had the same success as it has in Europe. Big Bosses at Hugo feel that with his stunning looks and huge fan following, the ‘match Point’ is the perfect celeb to be the new face of Hugo Boss. “We see a real opportunity with this brand. Hugo Boss does very strong business on a global scale, but the US fragrance business is underdeveloped. We haven’t peaked with it yet” Contactmusic quoted president of Proctor + Gamble Prestige’s US division Don Loftus, as saying. Boss Orange hits Carnaby Street Boss Orange has opened a store on London’s hip young Carnaby Street. The Soho store offers the entire range of men’s and women’s clothing and accessories from Hugo Boss’s younger line, spread out over two floors. “The street has really been coming up over the past couple of years, with new shops and new designers,” Andrea Cannelloni, Boss Orange creative director, told WWD. “It attracts people who travel, and has great local customers, too.” This store is the company’s second stand-alone store, after a concept store in Berlin, which opened in February. Although Boss Orange for men has existed since 2000, the company launched the line for women in 2005. It includes silk dresses, silk shirts and wool coats. The Carnaby Street store is similar to the Berlin concept store in its unfinished design look, but picks up on the vibe of Soho in its details. “The soul of the (London and Berlin stores) is similar, but we want every city to be a unique experience,” said Cannelloni, adding, “It’s not just about ‘Come and buy stuff’. We want customers to discover its special features.” These include a display German vending machine with retro toys and a Bakelite telephone next to the changing rooms. The lines retail for between $74 for a T-shirt to $1,700 for a leather coat. According to Cannelloni, Hugo Boss is looking to open a third location in cities like New York, Tokyo and Los Angeles next year. Profits for Hugo Boss womenswear Hugo Boss, Germany’s largest clothing maker, said first-half profit gained 17 percent as the company sold more luxury women’s wear. Net income rose to 54 million euros from 46 million a year earlier, the Metzingen, Germany-based Company said in a statement on the DGAP news wire today. Analysts surveyed by Bloomberg had forecast a net loss of 6 million euros. Sales rose 14 percent to 712 million euros. Chief Executive Officer Bruno Saelzer is drawing customers to the company’s Boss Woman line and higher-end goods such as leisurewear collection Boss Orange. Hugo Boss, which is controlled by Valentino Fashion Group SpA, has benefited from increased demand for high-end fashion. `law_article`Hugo Boss has continued to grow in all key global markets,” Saelzer said in the statement. `law_article`We are particularly pleased with the positive business performance in the U.S. as well as dynamic growth of Boss Womenswear.” Hugo Boss Q1 sales rise German fashion house Hugo Boss saw a 13 percent rise in sales in the first to €459 million, as opposed to €406 million during the same quarter last year. The company released its preliminary results, revealing it had sustained the sales growth of the previous quarters. Earnings before interest and tax rose 13 percent to €87 million from €76 million in the first quarter 2005. Meanwhile, net income grew 15 percent to €60 million from €52 million in the same quarter the year before. For the rest of 2006, the board of Hugo Boss forecasts an “increase in currency-adjusted sales of approximately 10-12 percent in comparison with 2005.” It also expects earnings before interest and tax to increase more than sales. Hugo Boss is available in over 5,000 stores in 102 countries, including directly owned stores, shop-in-shops and franchises. Hugo Boss opens Milan women’s store Hugo Boss AG has opened a women’s wear store in Milan. The German fashion house is working hard to win over female shoppers, after having made the crossover to women’s apparel in 2001. Initially the line did not do well, but the company has since then recovered. In 2005, women’s wear sales rose 38 percent and chief executive Bruno Sälzer told WWD that this year should yield growth of another 40 percent to reach €135 million. The opening of the Milan store is the fifth women’s store for the company. It already has three stores in Canada, two in Toronto and one in Vancouver. The fourth boutique opened last week in Geneva. According to Sälzer, Hugo Boss will open five more women’s stores this year, including one in Newport Beach in California this fall. Approximately 62 percent of women’s wear sales are at the brand’s fully owned or franchised stores. Wholesale sales make up the remainder, through 750 points of sale in 62 countries. Women’s wear sales totalled €95.7 million last year, representing 7.3 percent of the company’s consolidated sales of €1.31 billion. Sälzer said the goal for women’s wear is to grow sales to 30 percent of total revenues by 2013. Hugo Boss cautious after good news German fashion group Hugo Boss recorded sales in 2005 up 12 percent, but cautioned that sales and profit growth would slow somewhat this year. The company said it had achieved record sales of €1.309 million (£904 million), up from €1.168 million in 2004. Growth was driven by the “successful realignment of its business with the three growth segments Womenswear, Shoes and Leather Accessories, and Directly Operated Stores.” Womenswear sales soared 38 percent to €95.7 million. Meanwhile, sales from the group’s Directly Operated Stores business rose 41 percent to €137.5 million. Net income climbed 23 percent to €108.2 million. “We are well positioned for the future and are confident that we can continue to grow significantly stronger than the global fashion market,” chief executive Bruno Sälzer said in a statement. He estimated that pre-tax and net profits and sales would increase between 7 percent and 9 percent this year. Boss opens Sloane Square store The new Boss store on Sloane Square is taste of German functionality with a dash of luxury. The store, which is the Group’s first company-owned boutique in the UK, is a 10,000sq ft palazzo of all things Hugo Boss and sells both the mens and womenswear collections. UK managing director Hans Schmitt recently stated: “London’s prominence as a fashion centre means the Sloane Square store has significance for the worldwide business as well as trading in the UK. It is one of our key locations, along with Berlin, New York, Paris, Tokyo and LA.” A stand-alone Boss Orange store is due to open within the year and Carnaby Street in Soho has been a target location. Hugo Boss global sales were GBP898m for 2005. In 2004, UK sales were GBP58.8m, representing 14 per cent of international sales. Hugo Boss opens first Orange store German fashion house Hugo Boss opened its first Orange concept store in Mitte in Berlin last week, seven months after the opening of a Hugo Boss outlet around the corner. “We could have opened the first Orange concept store in LA, London, Tokyo or New York, but it just made sense to us (to do it) in Berlin,” chief executive Bruno Sälzer told WWD. “The city is very innovative, somehow unfinished and not so mature. There are lots of designers, artists and young people, and that’s especially the case in this area.” Boss Orange Woman, launched in July 2005, complements the Orange men’s collection, which was launched in 1999. Sälzer refers to the collection as a “high-quality, modern approach to leisurewear with a fashion statement.” It is geared towards the 25-35-age range, especially because prices make it unaffordable for most under 25-year-olds. Denim retails up to $350, and dresses can cost up to $500. Sälzer is quick to point out that the collection is more about lifestyle than age, and therefore not limited to a particular age range. Hugo Boss to discontinue Baldessarini Hugo Boss AG has announced it intends to discontinue production of its small, luxury-clothing brand Baldessarini. The German fashion retailer said it would stop the production and sale of the label after the Spring/Summer 2007 collections had been delivered to stores. Baldessarini fragrances, the production of which is licensed to Procter & Gamble, will not be affected by Hugo Boss’s move. “Baldessarini is too small for our current business structure,” said Hugo Boss spokesman Philipp Wolff. Baldessarini was named after the label’s former CEO, Werner Balderssarini, who founded it in 1993 and resigned in 2002, handing over the reigns to pr esent boss, Bruno Saelzer. In late 2003, Hugo Boss established a Baldessarini branch in Munich where it could manage the brand independently from the rest of the company, which is based in Metzingen. Hugo Boss denies acquisition Valentino Hugo Boss is not planning an acquisition of majority shareholder Valentino Fashion, a spokesperson for the luxury goods company told just-style. “There is no plan as of today,” said communications director for Hugo Boss, Phillip Wolff. He stated that the company had never planned on buying Valentino, although he could not say what would happen in the future. Earlier this month Valentino chairman Antonio Favrin suggested that a merger with Hugo Boss was a possibility in the future, although at present the company preferred to concentrate on developing existing brands. Hugo Boss expects record sales Luxury fashion house Hugo Boss has predicted record sales of €1.3 billion (£889 million) for the year. Chief executive Bruno Saelzer told local media that the company is looking to make acquisitions in the future. He said that the purchase of another brand would be feasible for the company, considering it current brand, distribution, business development and production positioning. Furthermore, Saelzer said that for the first time in history Hugo Boss’s sale of men’s suits was close to matching those of rival Armani. Women’s line boosts Hugo Boss earnings Hugo Boss has reported a leap in profits for the first nine months, boosted by its thriving women’s clothing line. The German fashion house has raised its 2005 earnings projections as a result. It also said it expected net income to rise to €105 million (£71.3 million), up from its previous forecast of €100 million. In the first nine months, the company saw net income rise 19 percent to €114 million. This means that the brand expects a loss for the last three months of the year. Hugo Boss generates most of its income in the first and third quarters, when the booking of pre-orders for the coming collections takes place. Sales climbed 12 percent to €1.06 billion. Boss Woman’s sales rose 36 percent to €74 million in the nine month period. Besides the launch of Boss Woman, the company also launched Boss Orange and Boss Green men’s wear labels, which target the sports lifestyle clothing market. This is originally the stomping ground of sporting goods retailers like Puma and Adidas, but fashion and sports are increasingly crossing over into each other’s territory. Hugo Boss also announced that board member Lothar Reiff will step down as the company cuts the number of its management board from five to four. Cat in the fashionable hat Singer Jay Kay will embark on a career in fashion by launching a line with Hugo Boss. He told Vogue that he was on his way to Japan to finalise details of the partnership with Boss executives. “It’s going to be very small – about 10 or 12 pieces,” he said. Jay Kay, who is known for his eccentric choice in headwear, said that the line would not focus on hats. “What I don’t want to do is jump on the hip hop bandwagon and just add my name to a piece of clothing that looks a lot like last year’s line,” he said. He told Vogue that he imagines a line aimed at jet setters. Hugo Boss expects sales growth German fashion house Hugo Boss has said it expects home sales to grow by four percent this year, in spite of a weak German market. “Our sales are growing in Germany, despite the underlying negative trend,” CEO Bruno Salzer told Bloomberg late last week. He revealed that German sales accounted for 25 per cent of the company’s revenue last year. Experiencing a downturn for the fourth consecutive year, the German fashion market reported a two percent drop in the first half of the year. Salzer said that he expected the industry to recover slowly over the coming years. Boss increases revenues Woman Hugo Boss, who’s womenswear never quite got off the ground as its successful menswear lines, is aiming to increase revenues from its Boss Woman collection by about 30 pct this year to nearly 90m EUR, CEO Bruno Saelzer said in an interview with Euro am Sonntag. “Last year, we reaped 8 pct of our overall revenues from our own Boss-Shops. This year it will be about 10 pct,” he said. He said the company expects to open up 10-15 new stand-alone stores annually, he said. Commenting on China, he said it is possible that the company will set up its own production facility there in five years. Hugo Boss Optimistic Hugo Boss AG plans to grow the share of ladies’ clothing sales in the group to one third by 2013. Chief executive Bruno Saelzer of the German luxury group told Focus-Money magazine this in a recent interview. The statement seems a brave one because Boss Women has only made a profit for the first time last year. Boss, Movado license agreement The German fashion concern Hugo Boss has signed a global licensing agreement with watchmaker Movado, according to which the latter will start manufacturing watches for Boss in March 2005. The Movado Group announced last week that the two companies will collaborate on the design, production and manufacturing of a watch collection under the brand names Boss and Hugo. According to the deal, Movado has exclusive rights to manufacture and distribute the entire collection of watches. Hugo Boss retail locations and a selection of wholesale distribution outlets in the US, Europe and Asia will sell the watches. The CEO and Chairman of Hugo Boss AG, Bruno Salzer, stated in the Movado press release that the strategy of the company was “to cooperate with licensing partners that lead their markets and work successfully with powerful brands. In Movado Group, we feel sure we have found a partner capable of further extending our position in the superior fashion watch segment.” As of 21st March, when the deal becomes effective, the Movado Group will handle the international distribution of the existing Boss watch collections. Due to the new agreement, product launches will be limited in 2005. These are planned for spring 2006 at the BaselWorld fair in Switzerland. Rick Cote, executive vice president and COO of the Movado Group said in the press release that the collection would focus “on the high end of the fashion watch category”. The US Movado Group designs, manufactures and distributes watches globally under its own brand name and also for Ebel, Concord ESQ, Coach and Tommy Hilfiger. Furthermore it operates Movado boutiques and company stores in the US. Boss Launches Premium Suit Line Hugo Boss is introducing a higher-quality suit offer to next season, as part of its Boss Black range. Using a semi-canvas construction, more handwork than their standard suit, they will retail between GBP599 and 899. Who’s The Boss? What’s more fashionable than a Hugo Boss suit? A brushed aluminium Hugo Boss bicycle, of course. Not only does it have Air Shox pneumatic suspension, adjustable wheel air volume, a handy folding mechanism and chunky 20-inch tyres. It also sports a snazzy orange frame guaranteed to get you noticed. Hugo Boss bike, from EUR600, carrying case included. www.hugoboss.com Hugo Boss Case Dismissed A class-action suit accusing Hugo Boss AG and its two former top U.S. managers of misleading investors about its finances has been dismissed. The lawsuit was filed in July 2002 on behalf of investors who bought stock in the Germany-based fashion house between Nov. 5, 2001, and May 28, 2002. The suit followed the disclosure of accounting irregularities at the company’s U.S. division, which led to the dismissal of Marty Staff, chief executive of the U.S. business, and Vincent Ottomanelli, chief financial officer. Boss took a $6 million charge last year because of the inventory discrepancies. Net income for 2002 dropped 30.6%, to $81.4 million, while sales were essentially unchanged, at $1.2 billion Profit Hugo Boss falls 31% Hugo Boss AG, the troubled German fashion house that is controlled by the Italian Marzotto Group, on Thursday revealed a 31 per cent slump in net profit to 74.7 million EUR. The company, based in Metzingen, issued three profit warnings last year. According to Hugo Boss, lower price margins and increased reserves for possible customer complaints are to blame. Profits were also negatively affected by costs related to the expansion of the company’s distribution channels and 2001 charges. Turnover for the year was 1.09 billion EUR – as expected – and was basically flat with prior year’s level. On a constant-currency basis, turnover increased by 1.3 per cent. In Europe, excluding Germany, sales rose four per cent over the year, while falling seven per cent in the company’s domestic market. The company’s menswear unit posted flat sales for the year while the Boss Woman line was hit by a 24 per cent slump in sales. Hugo Boss’s younger collection Hugo enjoyed a 16 per cent jump in annual sales. Hugo Boss operates 581 own and franchise stores worldwide. Decrease in profits expected for Hugo Boss The Management Board of Hugo Boss AG expects that, due to some problems arisen in the United States, the Company will sustain a decrease in profits in the year 2002 compared to 2001. The Management Board anticipates a consolidated net profit of about 95 million EUR in2002 (107 million EUR in 2001). The Hugo Boss business outside the United States will continue recording, this year, and good growth in both sales and profits. The above-mentioned possible decrease in the net profit of Hugo Boss AG might have a negative impact on the net profit of Marzotto S.p.A. for about 6 million EUR. However, Marzotto S.p.A. expects the achievement of extraordinary incomes, which will widely cover the possible lower profitability of Hugo Boss AG.
INTERNATIONALLY SUCCESSFUL THE HUGO BOSS GROUP HUGO BOSS – the name denotes success, perfection and a style that transcends international borders. The Group has been successfully asserting and expanding its position as a global market leader in the upscale fashion market for years, despite the overall weakness of the global economy. There are many reasons for the Company’s success. A major component is the professional senior management and dedicated workers who possess extensive knowledge of both markets and customers. Product competence, a global sales network and top-notch logistics are also important factors in the Company’s successful development. Uniform presentation of our products throughout the world and effective marketing measures support the strong image of the HUGO BOSS brands and the Company.
The HUGO BOSS brands encompass all key fashion areas, ranging from classic clothing, evening and leisurewear to functional sportswear and complementary accessories. Licensed products such as eyewear, watches, fragrances and cosmetics further enhance our collections. In the cosmetics segment, the new skincare series for men, BOSS Skin, enjoyed immediate market success in 2005.
THE HUGO BOSS BRAND WORLD
|BOSS||BOSS Black||Menswear Womenswear Accessories|
|BOSS Selection||Menswear Accessories|
|BOSS Orange||Menswear Womenswear Accessories|
|BOSS Green||Menswear Sporting Accessories|
|HUGO||HUGO||Menswear Womenswear Accessories|
These brand collections and their fashion lines are aimed at various target groups, creating a brand world of extraordinary fashion diversity at a constantly high level of quality. The BOSS Black, BOSS Selection, BOSS Orange and BOSS Green labels as well as the accompanying accessory collections are all part of the core BOSS brand.
The womenswear and menswear collections of the BOSS Black line offer wide-ranging styles. The comprehensive spectrum encompasses elegant business ensembles, casual sports clothing and evening wear designed for special festive occasions. The person wearing these clothes appreciates the ?awless look that expresses his or her personality and the high standards of quality.
The luxurious BOSS Selection Menswear collection embodies the premium tier of the BOSS brand world, implementing the design competence of the BOSS brand using the best materials and the ?nest workmanship. Hand-stitched details and features of traditional custom tailoring express the line’s exclusive nature and assure its positioning in the upper market segment.
The BOSS Orange collection offers leisure fashion for men and women who enjoy stylish out?ts and an element of surprise. Unusual materials, vibrant colors and intricate details are aimed at customers who like experimenting with fashion and also value good workmanship.
The functional sportswear in the BOSS Green line offers athletic and fashion-oriented men a collection that promises optimum performance from both a sports and fashion perspective.
The HUGO brand combines creativity and individuality. It offers self-con?dent men and women a collection to express their own style. HUGO is unconventional and avant-garde – a fashion de?ned not by age group, but by attitude.
The BALDESSARINI designer label represents luxury mixed with modern individualism for men with exacting standards. CREATIVITY AND PERFECTION The process of designing the collections and developing state-of-the-art manufacturing techniques takes place at the Group’s headquarters in Metzingen. Here, our creative teams design new models for each season of the year that are in step with current fashion trends. First, patternmakers transform ideas into prototypes. Sample collections are prepared as part of the further creative process; these are then presented as retail samples in worldwide showrooms. After the orders have been received, production planning in Metzingen prepares the models for series production. The introduction of new, labor-intensive collections such as BOSS Orange Womenswear presents increasing production challenges, which we are meeting by developing unique processing techniques. Modern distribution logistics using automated warehousing and conveying techniques guarantee optimum goods ?ow management throughout the process chain. Our quality control management oversees the entire production process and ensures that our high quality standards are maintained – from the selection of suppliers and procurement of raw materials to the delivery of the ?nished collection to retail stores.
In addition to steadily developing its collections, HUGO BOSS also continues to focus on new technologies and optimized work processes. With this goal, we initiated the Columbus project, the most comprehensive project in our corporate history. Columbus aims to signi?cantly increase ef?ciency in all business processes and involves reorganizing all processes, from collection planning and production up to delivery. This allows us to prede?ne delivery windows for complete fashion programs accurate to the week and to service retailers just in time – a development that is unique in the fashion industry, meets today’s demands and underpins our market leadership.
HUGO BOSS products are available worldwide in over 100 countries. Our own subsidiaries guarantee professional knowledge of key local markets. Our architects, merchandising teams and marketing services assist in the uniform presentation of HUGO BOSS at over 5,000 points of sale. Shop concepts are updated on an ongoing basis to enable constant innovative and high-quality presentation of our products. Our new accessory stores, for instance, are reaping the bene?ts of our new shop design. The ?rst two such stores, opened in Frankfurt and Amsterdam were immediately successful. This is an important step in expanding this market segment, which is of great signi?cance to HUGO BOSS.
Corporate and brand communication at HUGO BOSS is coordinated at our headquarters in Metzingen and supported by in-house staff at the subsidiaries as well as international public relations agencies. In addition to handling international business and lifestyle press relations, these professionals design and place magazine print ads and update our Internet presence, which is growing in importance as a marketing tool.
HUGO BOSS maintains very successful sponsorship programs. Cultural sponsorships link the HUGO BOSS brands with the aesthetic appeal, openness and innovation that are characteristic of the art world, while our sport sponsorships lend the BOSS core brand the attributes of success, fascination and dynamism. Major international fashion events serve to further enhance the HUGO BOSS brands by creating an additional emotionally charged aspect.
IN ACCORDANCE WITH IFRS AND HGBTEN-YEAR SUMMARY
In EUR million
|2005 IFRS||2004 IFRS||2003 IFRS|
|Financial Position and Dividends|
|Free cash flow before dividends||106.9||40.1||60.5|
|Asset and Liability Structure|
|Foreign sales in %7||75.7||75.0||75.2|
|EBIT margin in %||12.4||11.6||11.3|
|Return on sales after taxes in %||8.3||7.5||7.8|
|Return on equity in %8||23.8||21.3||20.4|
|Equity-to-assets ratio in %||54.8||51.3||52.9|
|Shares (in EUR)|
|Dividends per share|
|Special dividends per share|
|Earnings per share10|
|Cash flow per share||2.19||1.70||1.59|
1 Since 2004: Including non-recurring items. 2 Figures adjusted for the tax effect of special dividends. 3 Average for the year acc. to HGB; capacities on the reporting date acc. to IFRS. 4 Until 2004: Including non-recurring write-offs. 5 Incl. 50% of special untaxed reserves. 6 Until 2001: Fixed assets. 7 Export share incl. foreign royalties income. 8 Net incomes in relation to the average shareholders’ equity. 9 2005: Recommendation for dividend payment. 10 2005 –2001 Based on IFRS; prior to 2001: based on DVFA/SG (“Deutsche Vereinigung für Finanzanalyse und Anlageberatung/Schmalenbachgesellschaft”). 11 Frankfurt ?oor. 12 Negative amounts are shown in brackets.
|2002 IFRS||2001 IFRS||2001 HGB||2000 HGB||1999 HGB||1998 HGB||1997 HGB||1996 HGB|
|61.0||(46.8) 12||(26.3) 12||17.8||33.5||(2.6) 12||18.8||22.5|
OF HUGO BOSS GROUP FOR THE PERIOD JANUARY 1 TO DECEMBER 31, 2005
CONSOLIDATED INCOME STATEMENT
|In EUR thousand||Notes no.||2005||2004|
|Other operating income||(2)||51,395||38,525|
|Changes in inventories and other own costs capitalized||19,500||31,854|
|Cost of materials||(3)||(597,163)||(569,159)|
|Other operating expenses||(6)||(340,717)||(298,607)|
|Net interest expense||(4,753)||(5,338)|
|Other financial items||(922)||119|
|Income before taxes||157,238||130,066|
|Profit attributable to share- holders of HUGO BOSS AG||108,259||88,234|
|Earnings per share (EUR) 1||(10)|
|Dividend per share (EUR)||(22)|
CONSOLIDATED BALANCE SHEET
OF HUGO BOSS GROUP AS OF DECEMBER 31, 2005
|In EUR thousand||Notes no.||2005||2004|
|Property, plant and equipment||(12)||228,965||207,085|
|Deferred tax assets||(8)||31,234||24,988|
|Other non-current assets||(13)||26,000||38,026|
|Current tax receivables||2,116||9,963|
|Cash and cash equivalents||(16)||30,928||51,102|
|Other current assets||(13)||48,788||38,321|
EQUITY AND LIABILITIES
|In EUR thousand||Notes no.||2005||2004|
|Accumulated other equity||(21)||(8,062)||(21,251)|
|Profit attributable to share- holders of HUGO BOSS AG||108,259||88,234|
|Equity attributable to share- holders of HUGO BOSS AG||468,176||415,917|
|Non-current financial liabilities||(25)||82,333||114,581|
|Deferred tax liability||(8)||11,819||8,383|
|Other non-current liabilities||(26)||22,312||18,554|
|Current financial liabilities||(25)||55,679||91,294|
|Current tax payables||27,379||8,677|