Yahoo News Hugo Boss Has Record Year As US Demand Grows
Hugo Boss (Xetra: A1JGC5 - news) has said 2012 was the most successful year in its history as it cashed in on growing demand in the US.
The company said sales were up 10% to 2.35bn euros (£1.9bn), while earnings were 13% higher at 529m euros (£450m).
These were driven by a strong performance in the last quarter of 2012, when sales were up 18%.
Hugo Boss is currently experiencing its fastest growth in the US, where affluent consumers are snapping up its Boss suits.
Demand for its products in China - which has been driving the luxury market over the last few years - slowed in 2012.
Chief executive Claus Dietrich Lahrs said he expected the company to outperform the luxury market as a whole.
"Despite the still challenging market environment, I am confident that we will continue to post stronger growth than the overall market in 2013," he said.
Bain & Co, a consultancy firm, forecast growth in the luxury goods industry to slow to between 4% and 6% between now and 2015 - after 10% growth last year.
It expects Chinese consumers to stop spending as much as a result of uncertainty ahead of a change of government.
But the consultants said the US market "continued to demonstrate solid momentum".
Hugo Boss, which employs around 10,000, sells its two core brands - Boss and Hugo - in 124 countries.
It was founded by its namesake in 1924 in Metzingen, Germany, where it is still based.
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