Development of the order situation

Importance of order business falls due to increasing share of Group’s own retail business

HUGO BOSS is increasingly aligning its distribution activities and its business model to its own retail business. Because of the resulting above-average growth in this segment, the share of sales through the wholesale channel is decreasing. To this extent, the pre-order business, i.e. the sale of goods ordered in advance to wholesale partners, is losing significance for the development of the business as a whole although its share of sales within the wholesale segment remained unchanged in the past year.

In relation to total Group sales, the share of the traditional order business fell in the past fiscal year to 32% (2013: 34%). In order to plan its production to the best possible effect despite this, HUGO BOSS is therefore integrating not only order intake but, above all, the trend in its own retail business into its volume planning.

Number of group’s own retail stores

Group’s own retail network grows by a net figure of 31 stores in 2014

In fiscal year 2014, the total number of the Group’s own retail stores including outlets increased by a net figure of 31 to 1,041 (2013: 1,010). With a net increase of 17 locations, the major share of expansion fell on freestanding stores. The total selling space of the Group’s own retail stores rose by 4% to around 140,000 sqm (December 31, 2013: 135,000 sqm). www.hugoboss.com / Store Locator

Number of Group‘s own retail stores

In addition to organic growth of 66 stores, takeovers of 20 retail stores and shops previously operated by wholesale partners contributed to the increase in selling space in all three regions. On the other side of the picture there were 55 closures, mostly shop-in-shops which were closed in connection with a qualitative upgrade of the store portfolio.

Flagship store opened in Rome and concession model strengthened in France

Focusing on Europe, the retail network was further strengthened organically by the opening of 38 of the Group’s own stores as well as the takeover of five shop-in-shops previously managed by wholesale partners. The opening of a flagship store in Rome further strengthened brand presence in Italy. In addition, the Group was able to make significant strides with the concession model in France by opening new shop-in-shops at retail partners. Taking into account the 24 closures, operations in Europe report a net increase in the number of the Group’s own retail stores of 19 to a current 595 (2013: 576).

Expansion of store network in the Americas

In the Americas, the store network was extended by new openings in Canada, Mexico and Washington, D.C., USA. In addition, seven outlet stores were added to the portfolio, some of them temporarily. Taking into account six closures, this led to a net increase of four to a total of 204 own retail stores in this region (2013: 200).

Takeovers and new openings strengthen market presence in Asia/Pacific

In the course of the expansion in Asia/Pacific, 18 new stores and 15 takeovers were added to the portfolio of stores in fiscal year 2014. The Group’s presence in the Chinese market was strengthened by the opening of a flagship store on Canton Road in Hong Kong and eight other new openings. In Australia and Taiwan, HUGO BOSS took over a total of 15 points of sale previously operated by wholesale partners. Including the closure of 25 mostly smaller stores, there was a net increase of eight to a total of 242 own retail stores in this region (2013: 234).

In addition, some 6,550 points of sale are operated by wholesale partners, either as separate stores and shop-in-shops or in a multi-brand setting. This means that customers today can buy HUGO BOSS products in a total of around 7,600 points of sale in 130 countries. Key locations / global market presence