Currency-adjusted sales increase of 7% in the Group’s own retail business
In the Americas, sales in local currencies grew by 1%. Sales in the Group’s own retail business increased by 5% to EUR 392 million (2016: EUR 374 million). This is equivalent to a currency-adjusted increase of 7%. Sales in the region rose by a mid single-digit figure on a comp store and currency-adjusted basis. In the wholesale channel sales were down EUR 185 million in fiscal year 2017 and thus 11% lower than in the prior year (2016: EUR 208 million). In the Group’s reporting currency, this corresponds to a decrease of 10%. This was due to more selective distribution, particularly of the BOSS core brand, softening demand on the part of wholesale partners and takeovers of individual shop-in-shops.
Own retail business in the United States grows in 2017
In the United States, sales fell by 4% in the reporting currency and by 1% in the local currency to EUR 423 million (2016: EUR 440 million). This was mainly due to a decline in sales with wholesale partners by a rate in the high single-digits. Increases in sales in the Group’s own retail business did not fully offset this. Thanks to growth in the Group’s own retail business, sales in Canada were, at EUR 84 million, 12% above the prior-year level in the reporting currency (2016: EUR 75 million). Currency-adjusted sales rose by 13%. The takeover of shop-in-shops brought about a shift in sales between the distribution channels. As a result, the wholesale channel sustained a decline in sales in this market. In Latin America, sales increased by 4% in the reporting currency to EUR 70 million (2016: EUR 67 million). This corresponds to a currency-adjusted sales increase of 6%. Whereas sales in the Group’s own retail business were up in this market, the wholesale business remained stable.
Decline in segment profit
At EUR 119 million, segment profit in the Americas was down 11% on the prior year (2016: EUR 133 million). The reasons for this were the decline in sales in the wholesale business, an increase in operating expenses and negative currency effects. The adjusted EBITDA margin for the region, at 20.6%, was 230 basis points below that of the prior year (2016: 22.9%).