Hugo Boss: Suspends operations in Russia (upd)

LAST UPDATE 10:17

Hugo Boss has suspended sales and e-commerce activities in Russia, the German fashion company announced, leaving the country as well.

As of Wednesday, the company had closed its stores and suspended all retail and e-commerce activities in Russia, which launched an invasion of Ukraine two weeks ago, triggering sanctions.

Together with Ukraine, the Russian market accounts for about 3% of Hugo Boss’s sales last year, the company said, adding that it would offer financially and operational support to all affected employees and stay in touch with its business. partners.

“It is difficult to assess the impact of a possible further escalation of the war in Ukraine on the overall development of the economy and industry,” said Hugo Boss.

Since the beginning of the war, European clothing companies, including the German Adidas and Puma, the Spanish Inditex and the Swedish H&M, have all stated that they are closing stores or suspending operations in Russia.

The company also announced targets for the year, expecting double-digit revenue growth in 2022, as well as increased profits, following a strong 2021 close.

The German company announced that it expects an increase in organic sales by 10% -15% to 3.1-3.2 billion Euros in 2022, as it focuses on investments in its brands, respectively with the new strategy defined last summer.

Profits before taxes and interest are expected to increase by 10% -25% to 250-285 million Euros, mainly due to the strong momentum of revenues.

The company announced in January that sales in 2021 had risen 43% year-on-year to 2.79 billion euros, returning to pre-pandemic levels, and that it had returned operating profit of 228 million euros for the year.

The net profit amounted to 137 million Euros.

Hugo Boss also stressed that it is returning to the payment of dividends, which it suspended last year.

For 2021 it will propose a dividend of 70 cents per share, at 35% of net profits.