HUGO BOSS AG’s total capital expenditure was EUR 60 million
Capital expenditure in property, plant and equipment as well as intangible assets posted a substantial year-on-year rise to EUR 60 million (2014: EUR 34 million).
Intangible assets mainly comprise software. The addition of EUR 29 million (2014: EUR 21 million) was attributable, on the one hand, to investments in software and user rights in connection with the continuous enhancement of the ERP system, chiefly comprising the industry solution SAP AFS and SAP Retail for the Group’s own retail business. The rise was additionally fueled by investments in IT infrastructure associated with the takeover of major portions of the e-commerce value chain in Europe scheduled for early summer 2016.
The additions to property, plant and equipment of EUR 31 million (2014: EUR 13 million) are due primarily to expansion spending at the Metzingen site and the renovation of the Wendlingen warehousing site in preparation for the planned insourcing of order processing in the European online business. The opening of three new shop-in-shops in Germany and the takeover of a shop-in-shop in Dresden previously operated by a wholesale partner also generated additional investments.
Existing obligations from investment projects that have commenced are reported in the annual financial statements of HUGO BOSS AG under “Other financial obligations” and as at December 31, 2015 amounted to EUR 7 million (December 31, 2014: EUR 1 million).