Hugo Boss expects slower sales in 2012

PanARMENIAN.Net - German fashion house Hugo Boss said sales growth would slow in 2012, after a record year driven by demand from Asian consumers seeking European luxury names, Reuters reported.

Luxury companies, such as LVMH, Richemont and Burberry saw sales and profits jump last year and with China cutting its growth forecast for this year, many still see growth, but not at the same heady rates as in 2011.

Hugo Boss, known for its sharp men's suits, said it expected currency-adjusted sales to rise by up to 10 percent in 2012, with growth coming from all regions, compared with 19 percent in 2011.

Core profit - earnings before interest, tax, depreciation, amortization and special effects - would rise at a faster rate than sales, the group said on Wednesday, March 14.

The group, known for its mens' suits, had already reported preliminary 2011 results showing sales of 2.06 billion euros ($2.7 billion) and core profit up 34 percent to 469 million.

It has set itself a target of reaching sales of 3 billion euros and core earnings of 750 million in 2015.