Hugo Boss Forecasts Rising Full-Year Revenue on Retail Business

ITALY , Germany — Hugo Boss AG, the German luxury- clothing maker, forecast accelerated sales growth and rising earnings for this year as the company spends more to promote itself in Asia.

Revenue adjusted for currency swings and earnings before interest, tax, depreciation and amortization will both increase by “high single-digit” percentages, the clothier said in a statement today. On Feb. 7, the maker of of clothes, shoes, bags and accessories reported sales last year rose 4 percent to 2.43 billion euros ($3.39 billion) and profit climbed 7 percent to 565 million euros.

Boss, controlled by buyout firm Permira Advisers LLP, in November delayed a key profitability target as it spends more to open stores and promote itself to more free-spending Chinese consumers. The company sees double-digit growth in its own retail business this year, while the wholesale channel is expected to remain “broadly stable.”

Boss today said it forecast sales of 3 billion euros next year, compared with the average estimate in a Bloomberg survey of 2.89 billion euros. The company said it will reach an Ebitda profit margin goal of 25 percent of sales in the “medium term.” Analysts on average expect Metzingen, Germany-based Hugo Boss to achieve an Ebitda margin of 23.6 percent this year.

Boss shares closed 1.5 percent down yesterday to 94.5 euros. The shares have returned 8.4 percent in the past year, including reinvested dividends, compared with a 17 percent return for the DAX index.

By Aaron Ricadel; Editors: Kenneth Wong, Paul Jarvis, Kim McLaughlin