Hugo Boss charges ahead with a seven per cent hike in profits
HUGO BOSS, the luxury goods group majority owned by UK private equity firm Permira, has posted a 7 per cent hike in profits.
Updating investors ahead of annual results next month, Frankfurt-listed Hugo Boss said preliminary earnings before interest, tax, deductions and amortisation and before one-off items, were £469million, while sales were ahead 4 per cent at £2billion.
Luxury-goods groups have felt the pinch recently as demand in the Chinese market has slowed.
Hugo Boss has also been investing in its stores as it moves away from selling through other retailers.
Despite the challenges, chief executive Claus- Dietrich Lahrs said Hugo Boss was making “good progress”, adding: “We have reason to be confident. We have set ourselves the target to grow faster than last year and to outperform our industry.”
Permira’s involvement has been successful and also for SVG Capital, the London-listed investment firm that traditionally invests most of its funds through Permira.
Last year Permira made its first payout since it bought the stake in 2007, including £110.9million to SVG.