By Gordon Deegan
Copyright independent
New accounts filed by Hugo Boss Ireland Ltd show revenues dipped by 7pc, from €19.08m to €17.68m.
The directors said that, overall, the total business in 2024 “met management’s expectations in terms of both sales and profitability”.
The decline in profits takes account of a non-cash write-down of €1m and non-cash depreciation costs of €2.1m.
In 2024, turnover was split about 57pc or €10m from retail, 30pc or €5.2m from wholesale, and 13pc or €2.4m from e-commerce.
The company continues to invest in its online channel, the directors said.
“Customers can experience a comprehensive omni-channel service, which is now available from all freestanding stores,” they added.
The numbers employed at Hugo Boss remained at the same level – 56 – while staff costs rose from €1.56m to €1.73m.
The firm recorded operating profits of €919,776 and net interest costs of €305,763 resulting in the pre-tax profit of €614,013. It had post-tax profits of €463,465 after a corporation tax charge of €150,548 is taken into account.
At the end of last December, the company had accumulated profits of €4.57m.
On the firm’s future developments, the directors said the company “continues to explore opportunities for new retail stores in markets with our desired demographic, invest in its portfolio, focus on key performance indicators to drive productivity and maximise profit opportunities within our distribution channels”.
On the economic risks facing the business, the directors state that, within Ireland, there are a number of market uncertainties including inflation and the cost of living. They said: “The impact that these macro-economic factors will have on consumer discretionary spending is uncertain”.
On competitive risks faced by the company, it said the Irish retail market is highly competitive, “which can result in significant price competition”.
Separate accounts lodged by Hugo Boss UK Ltd with Companies House in the UK show that profits last year declined by 46pc to £9.05m (€10.4m), as revenues decreased by 4pc from £391.65m to £377.07m.
The profits for the UK arm take account of non-cash depreciation costs of £32.69m. Numbers employed at the UK unit decreased from 1,319 to 1,277, as staff costs totalled £39.62m.
