Hugo Boss shares hit 66.41 euros today as the German company reported a strong first quarter. Their Q1 sales were 539 million euros, as opposed to an average estimate of 531 million, and net income was 83.5 million euros for the quarter versus estimates of just over 70 million. These numbers represented a quarter-over-quarter increase of 21% and 43%, respectively. Net income rose 48%. Boss forecast 2011 sales and profit to be up at least 12 and 15 percent, respectively, resulting primarily from growth in China and the U.S.
"As the world recovers from recession, makers of luxury goods from shoes to handbags, wine and watches, have enjoyed soaring sales over the past year, driven by China's love of chic brands. LVMH and Burberry said last week they had made a good start to the year, despite fears that the earthquake in Japan would halt demand in the region.
Hugo Boss added on Thursday it had been able to maintain prices, thus improving its gross profit margin in the quarter. That contrasts with retailers at the lower end of the scale, such as Primark and H&M, which are being forced to keep prices low and absorb higher cotton costs themselves in order to hang on to bargain-hunting customers."
Boss shares have already doubled in the past year. It is 72% owned by private equity group Permira, whose execs must be smiling right about now and say they have no plans to lower their position.
source: Reuters
No comments:
Post a Comment