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Sales activities globally focused

BOSS and HUGO products can currently be purchased in 127 countries. The HUGO BOSS Group’s distribution activities are divided into three sales regions. With a share of 62%, Europe contributes the largest proportion of sales. America and Asia account for 21% and 14% of sales generated respectively. Within these sales regions, the six core markets – Germany, Great Britain, France, Benelux, the United States and China – contribute a total of around 63% of sales. 3% of Group sales is generated from license business. Sales and Profit Development of the Business Segments

HUGO BOSS distribution channels (graphic)

Group’s own retail business is the most important sales channel

The BOSS and HUGO brands are sold via the Group’s own retail business and wholesale business, both bricks-and-mortar retail and online. Over the last few years, the share of sales generated by the Group’s own retail business has grown substantially. Today, it accounts for 63% (2016: 62%) of Group sales. At the end of the year, the Group was operating 439 freestanding retail stores around the world (2016: 442). In addition, customers can buy the BOSS and HUGO collections in self-managed shop-in-shops in department stores as well as in outlets. The Group is increasingly linking its physical retail stores with its e-commence business. By visiting the website, customers are able to explore the BOSS and HUGO brand world and place orders in nine European countries as well as in the United States and China.

Different cooperation models in wholesale business

The wholesale channel contributed 34% to Group sales in fiscal year 2017 (2016: 35%). The Group’s wholesale partners include department stores, specialist retailers, which are frequently family-owned, and franchisees. In addition, cooperation with specialized online retailers is playing an increasingly important role. While department stores and specialist retailers sell the products of both Group brands either in separate shop-in-shops or in a multibrand setting, franchise partners independently operate freestanding stores mostly for the BOSS brand in accordance with the Group’s instructions and are mainly based in small markets not addressed by the Group’s own retail business. All in all, wholesale business encompasses around 6,700 points of sales (2016: 6,600 points of sale). Including its own stores and shops, the Group counts 7,800 points of sale (2016: 7,700 points of sale). Group Strategy Group Earnings Development

Sales by distribution channel (bar chart)

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