Sales Europe (in EUR million)
Share in sales Europe 2014 (2013)
Sales in Europe including the Middle East and Africa increased in fiscal year 2014 in both local currencies and in the reporting currency by 7% to EUR 1.567 million (2013: EUR 1.457 million).
Ongoing transformation of the business model and increased selling space productivity
In the past fiscal year, sales in the Group’s own retail business in Europe rose 14% to EUR 851 million (2013: EUR 747 million). This is equivalent to an increase of 13% in local currencies. In addition to continued selling space expansion, this favorable performance was particularly due to the heightened productivity of existing retail selling space. Sales with customers in the wholesale channel increased in both local currencies and the reporting currency by 1% to EUR 716 million (2013: EUR 710 million). This development was caused in particular by the upturn in the order business in the second half of the year.
Great Britain still the fastest growing core market within the region
At EUR 448 million, sales in Germany were up 7% on the prior-year level (2013: EUR 417 million). This rise was underpinned by double-digit growth in the Group’s own retail business and sales growth in the wholesale channel. In Great Britain, both the Group’s own retail business and the business with wholesale partners recorded double-digit sales growth. Sales in Great Britain in the Group’s reporting currency reached EUR 262 million, up 22% on the prior year (2013: EUR 215 million). In local currencies, this corresponds to sales growth of 16%. At EUR 171 million, sales in France were up 3% year on year (2013: EUR 166 million), with double-digit growth in the Group’s own retail business offsetting a decline in the wholesale channel. Because of the continuing consolidation in the wholesale channel, sales in the Benelux countries, at EUR 145 million, fell 6% below the prior-year level (2013: EUR 153 million). In the past fiscal year, however, the Group’s own retail business developed positively in this market as well. The business in Eastern Europe also developed well in the last fiscal year. HUGO BOSS posted double-digit sales growth in local currencies in this growth market.
Economic upturn supports sales growth in Spain
In Southern Europe, HUGO BOSS was able to generate sales growth in fiscal year 2014 in both Italy and the Iberian Peninsula. Double-digit growth rates in the Group’s own retail business and in the wholesale channel led to a significant rise in sales, particularly on the Iberian Peninsula.
Profit development Europe
1 Due to the reallocation of certain cost centers between corporate units and Europe, certain amounts shown here do not correspond to the figures reported in prior years.
Improved segment profit in Europe thanks to higher gross profit
The segment profit for Europe came to EUR 536 million, up 9% year on year (2013: EUR 490 million). The gross profit margin rose as a result of the growth in the Group’s own retail business and lower discounts in this channel. The higher selling and marketing expenses were offset by the increase in gross profit. At 34.2%, the adjusted EBITDA margin was up 60 basis points on the prior year (2013: 33.6%).