Hugo Boss plans new stores as trade rallies

Fashion house Hugo Boss today provided further evidence of a pick-up in the luxury goods industry, revealing its plans to open 50 new stores and predicting sales will stabilise in the final six months of this year.

The German label's bosses expect turnover to grow slightly this year, but reckons that earnings are likely to increase faster than sales thanks to cost-cutting and management's efforts to reshape the business.

Hugo Boss, listed on the Frankfurt stock exchange, shut some of its less lucrative stores and showrooms in the recession, while expanding internationally. It has renegotiated contracts with its suppliers. Its shares marked time at €28.50.