Women's line boosts Hugo Boss earnings

Hugo Boss has reported a leap in profits for the first nine months, boosted by its thriving women's clothing line. The German fashion house has raised its 2005 earnings projections as a result. It also said it expected net income to rise to €105 million (£71.3 million), up from its previous forecast of €100 million.

In the first nine months, the company saw net income rise 19 percent to €114 million. This means that the brand expects a loss for the last three months of the year. Hugo Boss generates most of its income in the first and third quarters, when the booking of pre-orders for the coming collections takes place. Sales climbed 12 percent to €1.06 billion. Boss Woman's sales rose 36 percent to €74 million in the nine month period.

Besides the launch of Boss Woman, the company also launched Boss Orange and Boss Green men's wear labels, which target the sports lifestyle clothing market. This is originally the stomping ground of sporting goods retailers like Puma and Adidas, but fashion and sports are increasingly crossing over into each other's territory. Hugo Boss also announced that board member Lothar Reiff will step down as the company cuts the number of its management board from five to four.