DGAP-Adhoc: HUGO BOSS AG: Brand investments in difficult market environment impact HUGO BOSS

HUGO BOSS AG  / Key word(s): Change in Forecast

23.02.2016 17:05

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

HUGO BOSS expects to continue its growth trajectory in 2016. Group sales
are forecasted to increase at a low single-digit percentage rate on a
currency-adjusted basis. This will be driven by continued solid growth in
region Europe.

The challenging market environment in China and the U.S. in particular and
continued investments in the Group's growth potential, however, will
depress earnings. Year-to-date 2016, sales in the Group's own retail
business were weaker than expected mainly in China and the U.S. In light of
this development, the Group focuses even more on the implementation of its
strategy to strengthen the brand and to drive the transformation to a
strictly customer-focused business model. As a result, the Group is
adjusting its sales prices in Asia more closely to the levels in Europe and
the Americas. In addition, it is limiting the distribution of the BOSS core
brand in the
U.S. wholesale business in order to elude the impact of a highly
promotional market environment as far as possible. Cost adjustment measures
will only be able to partially compensate for these effects. As a result,
the Managing Board now expects adjusted operating profit (EBITDA before
special items) to decline at a low double-digit percentage rate compared to
the prior year in 2016.

The Group is confident to continue increasing sales in the medium term and
to improve its margins again. However, the Group no longer expects to
improve its adjusted operating margin (EBITDA before special items in
relation to sales) to a level of 25%.

The Group will discuss the financial outlook in detail as part of the Press
and Analysts' Conference on March 10, 2016.

If you have any questions, please contact:

Dr. Hjördis Kettenbach 
Head of Corporate Communication

Phone: +49 7123 94-2375
Fax: +49 7123 94-80237

Dennis Weber 
Head of Investor Relations

Phone: +49 7123 94-86267
Fax:  +49 7123 94-886267


23.02.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------
 
Language:     English
Company:      HUGO BOSS AG
              Dieselstraße 12
              72555 Metzingen
              Germany
Phone:        +49 (0)712 394-0
Fax:          +49 (0)712 394-2014
E-mail:       info@hugoboss.com
Internet:     www.hugoboss.com
ISIN:         DE000A1PHFF7
WKN:          A1PHFF, , 
Indices:      MDAX
Listed:       Regulated Market in Frankfurt (Prime Standard), Stuttgart;
              Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,
              Hanover, Munich; Terminbörse EUREX
 
End of Announcement                             DGAP News-Service
 
---------------------------------------------------------------------------