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Hugo Boss sales accelerate in key Christmas quarter

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Reuters BERLIN
Last Updated : Jan 22 2019 | 1:06 PM IST

BERLIN (Reuters) - German fashion house Hugo Boss predicted more expansion this year after it saw sales growth pick up at the end of 2018, helped by strong growth in China, Britain and France and as well as online.

Hugo Boss said on Tuesday sales rose a currency-adjusted 6 percent in the fourth quarter to 783 million euros ($889 million) in the fourth-quarter, beating average analyst forecasts for 762 million euros, according to Refinitiv data.

"We are convinced to grow sustainably and profitably in 2019 and beyond," Chief Executive Mark Langer said in a statement.

Known for its smart men's suits, Hugo Boss has introduced more casual and sportswear styles to appeal to a younger audience and invested heavily in its online offer after a bid to go upmarket backfired a few years ago.

It said online sales rose 37 percent in the fourth quarter, the fifth consecutive quarter at a double-digit rate, while its retail business saw sales rise 4 percent on a same-store basis and the wholesale channel grew 15 percent.

Europe was its fastest-growing region, in particular Britain and France, where sales rose at double-digit rates, while China recorded high single-digit store sales growth on a currency-adjusted basis.

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The company said it expected full-year operating income before special items roughly on the prior year level as online investments and product quality improvements counterbalance strict cost control. It publishes full results on March 7.

($1 = 0.8809 euros)

(Reporting by Emma Thomasson, editing by Riham Alkousaa)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jan 22 2019 | 12:56 PM IST

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