Hugo Boss AG, the German luxury clothier, said third-quarter profit jumped 79 percent as sales increased at its retail unit and in China.
Net income rose to 92.2 million euros ($128 million), or 1.34 euros a preferred share, from 51.5 million euros, or 75 cents, a year earlier, the Metzingen, Germany-based company said in a statement today. That beat the 86.9 million-euro average estimate of four analysts surveyed by Bloomberg.
Sales of luxury goods may climb this year to the highest since 2007, led by demand in China and a rebound in the U.S., consulting firm Bain & Co. said last month. During the quarter, Hugo Boss started a joint venture with Rainbow Group in China, where Boss will add as many as 20 stores this year.
“Hugo Boss is clearly benefiting from top-line growth and also from some cost cutting,” Thomas Rosenke, an analyst at WestLB in Frankfurt, said in an interview before today’s figures were released. He has a “neutral” rating on the stock.
Hugo Boss said Oct. 14 that revenue increased 19 percent. The sales increase was driven by the company’s retail business, which rose faster than wholesale revenue.
Boss repeated a forecast that earnings before interest, taxes, depreciation, amortization and one-time items will rise about 20 percent this year as sales are set to climb 5 percent.
The preferred stock fell 39 cents, or 0.8 percent, to 47.22 euros in Frankfurt trading yesterday.