Capital expenditure (in EUR million)
HUGO BOSS invests EUR 220 million in fiscal year 2015
In the past fiscal year, HUGO BOSS invested a total of EUR 220 million in property, plant and equipment and intangible assets. Total investment thus increased by 63% year on year (2014: EUR 135 million). A sum of EUR 17 million is attributable to property, plant and equipment and intangible assets acquired in the purchase of other business units in Asia/Pacific and the Americas.
Capital expenditure by functional area (in %)
Capital expenditure remains focused on own retail business
Making up 59% of the total investment volume, the global expansion and modernization of the Group’s own retail business continued to be the focal point of investment activity in the past fiscal year (2014: 68 %). This corresponds to an investment volume of EUR 130 million (2014: EUR 92 million).
Investment in new retail stores owned by the Group came to EUR 71 million in fiscal year 2015 (2014: EUR 48 million). In Europe, new retail stores were amongst other opened in Dublin, Verona, Athens. In the Americas, the opening of stores in metropolises such as Vancouver and Toronto as well as the takeover of 14 selling spaces in Mexico were particularly noteworthy. Furthermore, in Asia/Pacific the main highlight was the takeover of 45 stores in South Korea, China and New Zealand.
Modernization of the Group’s own retail locations increases
EUR 59 million was invested worldwide in the renovation and modernization of existing retail locations in the past fiscal year (2014: EUR 44 million). The bulk of these investments were in Europe, with the primary focus on the modernization of stores in London, Liverpool and Düsseldorf.
In 2015, investment in the production, logistics and distribution structure as well as in research and development came to EUR 38 million (2014: EUR 12 million). The increase is chiefly the result of the renovation of the Wendlingen warehouse location in preparation for the planned insourcing of order processing in the European online business, the construction of a new showroom in New York and a new production hall at the Group’s own production plant in Izmir.
Investments in administration came to EUR 52 million in the past fiscal year (2014: EUR 31 million). This mainly includes investments of EUR 34 million in the IT infrastructure (2014: EUR 21 million) as well as spending on expansion at the Metzingen site.
The accumulated amortization and depreciation on property, plant and equipment and intangible assets including own work capitalized came to EUR 793 million (2014: EUR 688 million). Notes to the Consolidated Financial Statements, Notes 11 and 12
Obligations from investment projects that had commenced as of the December 31, 2015 amounted to EUR 8 million (December 31, 2014: EUR 1 million). Notes to the Consolidated Financial Statements, Note 33
Capital expenditure by region (in %)
1 Including Middle East and Africa.