(Corrects headline to show 25 percent is a margin target, not a growth target)
HONG KONG/FRANKFURT, Nov 26 (Reuters) - German fashion house Hugo Boss said on Tuesday it will not meet its target of 750 million euros ($1.01 billion) in core operating profit in 2015.
The company had said it was aiming for 2015 sales of 3 billion euros and a core operating profit (EBITDA) of 750 million euros in the 2015 business year.
“The group will intensify investments in brand communication towards the end-consumer to accelerate group growth and achieve a 25 percent EBITDA margin. However, the group is assuming this goal will only be reached after 2015,” it said at an event in Hong Kong.
Many analysts had been sceptical of the initial target, with the average forecast for sales of 2.9 billion euros and core profit at 713 million, according to ThomsonReuters Starmine, which weights analysts’ predictions according to their previous accuracy.
For 2013, the company expects currency-adjusted sales and earnings to rise by between 6 percent and 8 percent, which would require growth of above 10 percent in the fourth quarter.
Hugo Boss has set a target that 55 percent of its sales should come from its own retail stores by 2015, rather than via wholesale partners. Analysts believe the group will easily achieve this goal.
$1 = 0.7404 euros Reporting by Victoria Bryan and Clare Baldwin; Editing by Stephen Coates