Overall assessment of the Managing Board on the economic situation and expected development of the Group development of the Group
HUGO BOSS achieves annual targets
HUGO BOSS achieved its sales and earnings targets formulated for fiscal year 2017 and exceeded some of them. The Group benefited from the first results of its strategic realignment adopted in 2016. The catalog of measures already initiated in advance had a positive effect on the business performance. For example, improvements to the market position in the United States and Asia, savings in operating costs and the optimization of its store network helped stabilize sales and operating profit. Finally, the performance of the global economy and industry had a favorable impact on financial development.
Currency-adjusted increase in sales of 3%, stable earningsdevelopment
Primarily thanks to the better-than-anticipated sales development in own retail, Group sales in 2017 rose by 3% in currency-adjusted terms and thus more strongly than assumed at the start of the year. The operating profit (EBITDA before special items), at EUR 491 million, remained at the prior-year level and thus in line with the forecast. The increase in sales was balanced by investments in repositioning the BOSS and HUGO brands, the digital transformation of the business model and negative currency effects. Group Earnings Development
Free cash flow increased substantially due to the lower investment volume and the decrease in trade net working capital. With its low level of financial liabilities, the Group is therefore still in an exceedingly solid economic situation. Financial Position
HUGO BOSS expects return to profitable growth in 2019
For 2018 HUGO BOSS expects accelerated growth in sales. The EBITDA before special items is expected to develop within a range of ‑2% to +2% compared to the prior year. Investments in future growth, which will still have an adverse effect on earnings growth in 2018, are intended to ensure that Group sales in 2019 and beyond will grow more strongly than the relative market segment. The operating margin should therefore also increase again. Subsequent Events and Outlook
Metzingen, February 20, 2018
HUGO BOSS AG
The Managing Board
Mark Langer
Bernd Hake
Yves Müller
Ingo Wilts