In fiscal year 2008, HUGO BOSS’ Group sales increased in local currency-adjusted by a good 6%. Sales growth was therefore in line with expectations.

Although there has been increasing downward pressure on the European single currency since late summer, HUGO BOSS recorded negative currency effects for the year as a whole. The euro exchange rate with the U.S. dollar, pound sterling, and the Hong Kong dollar had a particularly negative impact on sales in the reporting currency, which increased by just 3% to EUR 1,686 million (2007: EUR 1,632 million).

This positive overall sales performance of HUGO BOSS in the previous year was driven by a number of factors. In particular, the Group benefited from the dynamic development in the growth regions of Asia and Eastern Europe, which remain fundamentally consumer-friendly with respect to luxury goods. Furthermore, in other, more difficult markets, wholesale customers responded to the uncertainty affecting the fashion market by demonstrating their confidence in the continued acceptance and attractiveness of HUGO BOSS. Finally, the Group’s own retail business with its robust growth also contributed to the overall improvement in its economic performance, with sales growth of 15% currency-adjusted whereas retail sales have been slowing down in the course of the second half of 2008.

Positive sales performance was especially driven by strong sales growth outside Europe, high attractiveness of the BOSS and HUGO brands as well as sales growth in own retail.

The segmentation of the Europe, America, Asia/Pacific, and Royalties segments differs from the previous presentation for the first time because HUGO BOSS adapted its external segment reporting to the new internal organizational structure, which was established in 2008. For further information on sales development in regard to key sales markets and regions can be found in the chapter entitled “Segment Reporting”.

In a multi-year comparison, the sales development of the segments was as follows:

Sales development