Sales by distribution channel

Growth in Group’s own retail business spurred by 3% increase in retail comp store sales

The Group’s own retail business (Retail) once more contributed to sales growth in fiscal year 2014 with double-digit growth rates. In particular, the expansion of the store network by the opening of new stores and takeovers led to a rise in sales in the reporting period in both local currencies and the reporting currency of 12%, to EUR 1.471 million (2013: EUR 1.314 million). On the basis of retail comp store sales, i.e. including retail areas opened or taken over before December 31, 2012, sales in the Group’s own retail business were 3% higher than the prior-year level in the reporting currency. Sales also rose by 3% after currency adjustment. The share of the Group’s own retail business in Group sales was further expanded and stood at 57% in the reporting period (2013: 54%).

Double-digit sales growth in directly operated stores (DOS)

The sales of directly operated stores (DOS) were successfully increased by 12% in local currencies in the reporting period, and also by 12% after currency adjustment, to EUR 976 million (2013: EUR 874 million). This includes sales of directly operated freestanding stores as well as sales generated with concession partners. With the concession model, the Group directly operates HUGO BOSS shop-in-shops in retail partners’ selling space. With sales growth in the Group’s reporting currency of 13% to EUR 427 million, the outlet business contributed to the positive development of sales from the Group’s own retail business (2013: EUR 379 million). This is also equivalent to a currency-adjusted increase of 13%. The sales generated by the Group’s own online stores rose in fiscal year 2014 in both local currencies and the reporting currency by 10% to EUR 68 million (2013: EUR 61 million).

Slight decline in sales in the wholesale channel

In fiscal year 2014, sales in the wholesale channel were down 2% on the prior year in the reporting currency and totaled EUR 1.043 million (2013: EUR 1.060 million). Adjusted for currency effects, sales declined by 1%. The takeover of selling spaces previously operated by wholesale partners caused a shift in sales from wholesale business to the Group’s own retail business. Consolidation of the customer portfolio and the resultant decline in business with smaller business partners also contributed to this trend. On the other hand, HUGO BOSS posted solid growth in the business with large department store partners due to thriving pre-order business. However, the replenishment business, which allows HUGO BOSS to react to short-term surges in demand from business partners, shrank slightly in the past fiscal year. The share of the wholesale channel in consolidated sales decreased from 44% in the prior year to 41% in fiscal year 2014.

Stable development of sales in the license business

The license business showed stable development in fiscal year 2014. The products produced by partners include fragrances, eyewear and watches. As in the prior-year period, sales with external licensees came to EUR 58 million (2013: EUR 58 million). License income from fragrances fell slightly compared to the prior year. Double-digit growth in women’s fragrances was compensated by decreasing sales in the area of men’s fragrances. In license income for watches, in contrast, a double-digit rise in sales was recorded. The share of the license business in consolidated sales remained unchanged at 2%.