HUGO BOSS again closed the fiscal year 2007 with Group sales and profits at record levels. Sales grew by 9% to EUR 1,632 million, or 12% on a currency-adjusted basis. Earnings before income taxes rose by 18% compared to the previous year, to EUR 212 million. Based upon these figures, HUGO BOSS has reached its forecast of a 10–12% increase in currency-adjusted sales and has actually significantly exceeded its profit forecast, which was for a pre-tax profit of +12–15%. The organic growth areas of BOSS womenswear, shoes and leather accessories, and the Company’s own retail operations also met their sales targets. The Group was able to achieve double-digit growth rates in all three areas. The same applied for the growth regions in East and Southeast Asia, particularly China, as well as the HUGO BOSS business in the USA. The Group was able to deploy the Columbus project on schedule by the end of 2007 for all brands. This will allow the Group to efficiently implement its future growth plans, and also creates an ideal platform for possible external growth.

The strategic alignment of the HUGO BOSS Group is fully supported by the new major shareholder, Permira Funds, which holds circa 72% of the share capital via its indirect stake in the Valentino Fashion Group S.p.A. The change in ownership has not led to any modifications of strategy or corporate structure. Thanks to the overall positive results in fiscal 2007, the Company has laid the foundations for continued profitable growth in 2008 and beyond. A decisive factor for this, however, is continued stable economic growth worldwide.