HUGO BOSS again closed the fiscal year 2006 with Group sales at a record level. Total sales for 2006 increased by 14% to EUR 1,496 million (2005: EUR 1,309 million). All major economic regions contributed to this success with double-digit percentage sales growth. The Americas experienced the highest growth rate (+17%), followed by Europe with sales growth of 14%.

BOSS Womenswear made a significant contribution to the excellent sales trend in the 2006 reporting year. The two womenswear lines, BOSS Black Womenswear and the leisure-oriented BOSS Orange Womenswear line that was launched on the market in fiscal 2006, increased by a total of 69% to EUR 162 million (2005: EUR 96 million).

In fiscal 2006, the Group expanded the product segment of shoes and leather accessories, which is of particular significance for the women’s clothing business. Sales growth of 28% to EUR 151 million (2005: EUR 118 million) illustrates the increasing significance of these product groups.

Another key contribution to the positive sales trend was made by the accelerated expansion of sales via the Group’s directly operated stores (DOS), with 65 new locations leading to an increase of 39% to EUR 192 million (2005: +41% to EUR 138 million). The share of DOS sales thus rose to 13% of total sales.

On the whole, the effects of currency fluctuations in fiscal 2006 had an only minor impact on sales performance. The balance of the negative effects due to the weaker U. S. dollar and the decline over the year of the Japanese yen were countered by positive effects from a firmer Canadian dollar over the course of the year, resulting in a slightly positive impact on currency-adjusted sales performance.

Adjusted for currency fluctuations, the increase in Group sales was 14% in both local currencies and the reporting currency.

HUGO BOSS generated double-digit percentage sales growth in all quarters of fiscal 2006. Sales in the fourth quarter of fiscal 2006, for instance, increased by 14% to EUR 280 million (Q4 2005: EUR 247 million). The first three quarters of 2006 experienced similar sales momentum.