Fashion brand Hugo Boss hopes new shops and a womenswear line designed by Michelle Obama favourite, Jason Wu, will help it grow yearly sales and profit.
New York-based Wu was brought in as artistic director of its womenswear last month to reinvigorate its collections. Hugo Boss chief executive Claus-Dietrich Lahrs, said at its second quarter update today: “Investments in our brands as well as our collections will be the cornerstone for a successful second half year. We are therefore confirming our sales and earnings targets for 2013.”
The German-based brand, which is 56% owned by London-based private equity group Permira Advisers, said its second quarter profit beat analyst expectations at €101.8 million while sales were only slightly below analyst consensus forecasts at €531.7 million.
It has opened 61 directly-operated stores in the first half and said its retail business will be the “growth engine” for the brand. Overall sales for the first half were 11% ahead of the previous year and gross margins improved to 65.8% in the second quarter.
