BASEL, Switzerland (Reuters) - German fashion house Hugo Boss
Luxury companies, such as LVMH
Hugo Boss, known for its sharp men's suits, said it expected currency-adjusted sales to rise by up to 10 percent in 2012, with growth coming from all regions, compared with 19 percent in 2011.
Core profit -- earnings before interest, tax, depreciation, amortization and special effects -- would rise at a faster rate than sales, the group said on Wednesday.
Before the statement, analysts were on average expecting 2012 sales and profits to rise by around 8 percent, according to Thomson Reuters I/B/E/S.
The group, known for its mens' suits, had already reported preliminary 2011 results showing sales of 2.06 billion euros ($2.7 billion) and core profit up 34 percent to 469 million.
It has set itself a target of reaching sales of 3 billion euros and core earnings of 750 million in 2015.
The group is controlled by private equity firm Permira, which last year denied the sale of a 6.4 percent meant it was on the verge of exiting the group.
On Tuesday, however, Hugo Boss said it will convert all its preference shares into ordinary shares, seen as a beneficial move for Permira, which first invested in Hugo Boss in 2007.
"Seems as if Permira slowly prepares for its exit," a Frankfurt-based trader said.
Also on Tuesday, Hugo Boss upped its dividend per ordinary share to 2.88 euros from 2.02 and to 2.89 euros from 2.03 for each preferred share. ($1 = 0.7628 euros)
(Reporting by Victoria Bryan; Additional reporting by Harro ten Wolde)