Capital expenditure (in EUR million)
HUGO BOSS invests EUR 135 million in fiscal year 2014
In the past fiscal year, HUGO BOSS invested a total of EUR 135 million in property, plant and equipment and intangible assets. Total investment thus declined by 27% year on year (2013: EUR 185 million). The decrease is mainly attributable to capital expenditure on the expansion of logistics capacities in the prior-year period, which did not recur in the period under review.
Capital expenditure by functional area (in %)
Capital expenditure focuses on own retail business
Making up 68% of the total investment volume, the global expansion and modernization of the Group’s own retail business continued to be the focal point of investment activity in the past fiscal year (2013: 61%). This corresponds to an investment volume of EUR 92 million (2013: EUR 113 million).
Investment in new retail stores owned by the Group came in 2014 to EUR 48 million (2013: EUR 75 million). In Europe, flagship stores were opened in Rome and Milan and retail stores in Marseille, Berlin and Moscow. In the Americas, attractive locations were added to the portfolio in cities such as Washington, D.C., and Vancouver. Additional highlights in Asia/Pacific were the opening of a flagship store in Hong Kong and new openings in Sydney and Osaka.
Modernization of the Group’s own retail locations increases
In the past fiscal year, EUR 44 million was invested worldwide in the renovation and modernization of existing retail locations (2013: EUR 38 million). The bulk of these investments were in Europe, with the primary focus on the modernization of two stores in London and in Zurich. In several cases, the Group expanded the stores’ floorspace during the modernization work by taking over adjacent selling spaces.
In 2014, investment in the production, logistics and distribution structure as well as in research and development amounted to EUR 12 million (2013: EUR 41 million). The decrease is mainly attributable to capital expenditure on the expansion of logistics capacities in the prior-year period.
Investments in administration came to EUR 31 million in the past fiscal year (2013: EUR 32 million). They include, in particular, investments in the IT infrastructure of EUR 21 million (2013: EUR 16 million).
The accumulated amortization and depreciation on property, plant and equipment and intangible assets taking into account own work capitalized came to EUR 688 million (2013: EUR 603 million). Notes to the consolidated financial statements, Notes 11 and 12
Obligations from investment projects that have commenced as of December 31, 2014 amounted to EUR 1 million (December 31, 2013: EUR 2 million). Notes to the consolidated financial statements, Note 33
Capital expenditure by region (in %)
1 Including Middle East and Africa.