Hugo Boss Has Record Year As US Demand Grows
Hugo Boss has said 2012 was the most successful year in its history as it cashed in on growing demand in the US.
The company said sales were up 10% to 2.35bn euros (£1.9bn), while earnings were 13% higher at 529m euros (£450m).
These were driven by a strong performance in the last quarter of 2012, when sales were up 18%.
Hugo Boss is currently experiencing its fastest growth in the US, where affluent consumers are snapping up its Boss suits.
Demand for its products in China - which has been driving the luxury market over the last few years - slowed in 2012.
Chief executive Claus Dietrich Lahrs said he expected the company to outperform the luxury market as a whole.
"Despite the still challenging market environment, I am confident that we will continue to post stronger growth than the overall market in 2013," he said.
Bain & Co, a consultancy firm, forecast growth in the luxury goods industry to slow to between 4% and 6% between now and 2015 - after 10% growth last year.
It expects Chinese consumers to stop spending as much as a result of uncertainty ahead of a change of government.
But the consultants said the US market "continued to demonstrate solid momentum".
Hugo Boss, which employs around 10,000, sells its two core brands - Boss and Hugo - in 124 countries.
It was founded by its namesake in 1924 in Metzingen, Germany, where it is still based.