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Business News

Hugo Boss profits defy the downturn

Hugo Boss said it was "confident" of outperforming rivals in the luxury market this year as the German designer reported an 8 per cent rise in earnings yesterday.

The 89-year-old company, which is owned by the private equity firm Permira, said its strong performance last year had been driven by "significant sales growth and strict management of operating expenses".

Following strong recent results from Prada, Louis Vuitton and Hermès, Hugo Boss is the latest luxury brand to show it is powering through the consumer downturn, driven by well-heeled customers in emerging markets from China to the Middle East.

Hugo Boss said that both its wholesale and retail divisions, and all its regions worldwide, contributed to an 8 per cent leap in post-tax profits to €285m (£245m) last year.

Claus-Dietrich Lahrs, the chief executive, said: "Despite the still-challenging market environment, I am confident that we will continue to post stronger growth than the overall market in 2013."

Total sales at Hugo Boss, which is based in Metzingen, Germany, jumped by 10 per cent to €2.35bn.