Hugo Boss Will Recover The Franchise Right In Large Volume.

Annual sales of 2 billion 570 million euros (about 3 billion U.S. dollars), an increase of 6% over the previous year, slightly lower than analysts' average forecast of 2 billion 590 million euros.

The annual pre tax profit was 437 million euros (US $501 million), an increase of 1% over the previous year, before analysts generally expected profits to reach 470 million euros.

The annual operating profit was 591 million euros (US $786 million), an increase of 5% over the same period last year.

Hugo Boss plans to merge some factories and dissolve cooperation with an agent in the Middle East, which has led Hugo Boss to record a one-time expenditure of up to 1900 million on its books, which has a negative impact on profits.

The two digit growth is still the main driving force for the growth of group performance.

The Asia Pacific region and Europe are better than the group average.

However, the overall growth rate slowed down in Europe, but the UK and Spain maintained a two digit growth rate.

In the fourth quarter, the market environment deteriorated seriously, and the group did not perform well.

The fourth quarter sales volume was 684 million euros (about 854 million US dollars), which increased by 3% over the same period.

The profit before interest tax depreciation and amortization (EBITDA) was 167 million euros (US $209 million), an increase of 6% over the same period last year. However, in the fourth quarter of 2013, EBITDA grew by 17%.

The artistic director, the Chinese women's clothing series designed by Jason Wu, was better than the group average in the fourth quarter, to a certain extent, to make up for the negative impact of the decline in gross margin and the increase in operating expenses.

As of January 1, 2016, the group will reclaim franchise from China, South Korea and the Middle East in order to strengthen its control over major emerging markets.

The specific strategic measures are as follows:

In South Korea, Hugo Boss will take over 17 stores of franchised dealer TDCo before March 1st and jointly manage 7 duty-free shops with partners.

In China, Hugo Boss plans to take over 21 Chinese stores responsible for Wenzhou noble department store before April 1st, following the withdrawal of the agency from the Macao rainbow group, a franchise retailer.

After the completion of the acquisition, the total number of Hugo Boss outlets in China will reach 130.

In the Middle East, Hugo Boss has suspended cooperation with a distributor in the Lebanese capital of Beirut, taking full responsibility for the expansion of the retail network in the Middle East.

Hugo Boss plans to set up a distribution company in Dubai, which is responsible for sales in Arabia.

Hugo Boss expressed the hope that in 2015, the Chinese and Korean markets could contribute a percentage point of sales growth to the group, which would have a positive impact on operating profits.

Hugo Boss CEO Claus-Dietrich Lahrs said, "2015 is not easy for Hugo Boss, and the economic environment and political environment are full of uncertainty.

But we are confident that the group will continue to grow in sales. "

Analysts are optimistic about the long-term prospects of Hugo Boss.

They believe that by 2017, the profit margin before interest tax depreciation and amortization of Hugo Boss will reach 25%.

Although the group's share price fell by 3.5% after the performance briefing, Hugo Boss's stock has been the leader of the luxury sector in the past five years in the past six years.