Hugo Boss has reported an 11% increase in turnover and a 16% rise in profits in the UK for the year to 31 December 2017.
Turnover reached more than £273m, compared with £245m the year before. Operating profit rose 9% to £30.9m, while total profit for the financial year rose 16% to £23.8m.
The business now employs 948 people, up from 931 in 2016.
After opening four new freestanding stores across the UK – in Newcastle, Oxford, Kingston-upon-Thames and Southampton – as well as one outlet store in Bridgend, retail sales grew by 12%. Six existing stores were also renovated during the year.
Wholesale sales increased by 11% over 2016. The sales split is similar to 2016: 74% came from own retail stores and 26% from wholesale. Sales via Hugo Boss’s online channels continued to grow.
The opening marks the first step of the two-brand strategy announced in 2016. The premium brand is streamlining its portfolio to two lines – Hugo, a collection of contemporary smart-casual pieces, and Boss, a range of tailoring and athleisure collections. The company is planning to open 10 Hugo stores globally over the course of 2018. Hugo stores in Amsterdam and Paris have already opened. The first UK Hugo store opens this month at Westfield London in White City.
The results are said to have met management’s expectations. Highlighted risks and concerns for the coming year include some lingering anxiety about the economic uncertainty around the UK’s decision to exit the European Union and the impact of that on customer spending.
There are also concerns a global slowdown would lead to higher stock levels because of six-month lead times, and subsequent discounting and inventory devaluation.