Hugo Boss set to pay higher dividend for 2013

FRANKFURT, Germany — Shareholders in German fashion house Hugo Boss can expect a higher dividend for 2013, its chief financial officer told Reuters on Friday.

Core earnings rose 7 percent in 2013, and net profit would show a similar progression, CFO Mark Langer told Reuters after the group released some preliminary figures for 2013 on Friday.

"That means net earnings will be higher than last year and we expect that the supervisory board will propose a higher dividend," he said.

Hugo Boss traditionally pays out around 60-80 percent of its net earnings as dividends and paid a dividend of 3.12 euros ($4.24) for 2012, equivalent to a payout ratio of 70 percent of net earnings. It will report full results, including net earnings, on March 13.

Langer also said the group was confident of growing sales this year by more than the 6 percent achieved in 2013, driven by sales from the stores it runs itself.

Hugo Boss expects own-retail sales to rise by a double-digit percentage in 2014, while wholesale revenues would be flat, Langer said.

By Victoria Bryan

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