Hugo Boss Proposes Stable Dividend for 2015
Sales expected to grow at a low single-digit percentage rate.
Fiscal year 2015 was the sixth year of growth in succession for Hugo Boss. Sales and operating profit rose to new record levels. However, due to the difficult market situation and company-specific challenges in the U.S. and China, earnings fell slightly short of expectations.
For the current year, Hugo Boss once more expects sales to grow at a low-single-digit rate in local currencies, but with a low-double-digit decline in earnings. The Company has initiated steps to safeguard long-term sales and profit growth. These actions primarily address distribution and brand perception in the two core markets of the U.S. and China, further optimization of the global retail business in connection with the digitization of the business model and moves to secure a strong free cash flow.
«Hugo Boss remains a sound, growing company. However, in an increasingly challenging market environment, success can’t be taken for granted,» says Mark Langer, CFO of Hugo Boss AG. «To safeguard our profitable long-term growth, we have to align our strategy even more rigorously with customer needs. Management has therefore initiated measures to successfully address the external and company-specific challenges. Our brand’s attractiveness, the quality of our operating platform, our financial strength and our highly motivated workforce give us strong foundations for the future.»
Hugo Boss Group’s sales increased by 9% to EUR 2,809 million in 2015. Adjusted for currency effects, the increase came to 3% and was therefore in line with the forecast made in October last year. Double-digit sales decreases in China led to a currency-adjusted decline of 7% in Asia/Pacific in the fourth quarter.
The Managing Board and the Supervisory Board of Hugo Boss AG intend to propose to the Annual Shareholders’ Meeting an unchanged dividend of EUR 3.62 per share for fiscal year 2015. This proposal reflects the strength of the Company’s balance sheet and its positive growth prospects for the coming years.
Hugo Boss expects to be able to increase sales in fiscal year 2016 by a low-single-digit percentage rate, adjusted for currency effects. The forecast is based mainly on solid growth in Europe. A slight decline is expected in both the Americas and Asia/Pacific. The sales growth will be sustained by the Group’s own retail business.
