Global sourcing and distribution activities

A part of the overall HUGO BOSS product assortment is produced in-house. In addition, products are manufactured by independent suppliers that are mainly located in Eastern Europe and Asia. The Company sells its collections in 127 countries around the globe. The Group's sales regions are Europe (60% of sales), the Americas (24% of sales) and Asia/Pacific (14% of sales). In addition, 2% of sales are generated from royalties. Sourcing and Production Development of the Business Segments

Growing importance of Group's own retail business

Today, HUGO BOSS customers can buy products at approximately 7,100 points of sale. Some 6,100 are operated by wholesale partners, that is department stores and, often, family-run specialist stores as well as franchise partners. Department store partners sell HUGO BOSS products either in shop-in-shops or in a multi-brand setting. Franchise partners operate freestanding HUGO BOSS stores. Sales with franchise partners are also reported in the wholesale segment. While the share of the wholesale business is decreasing, making up 44% of total sales in fiscal year 2013, the importance of the Group's own retail business is growing dynamically. This includes freestanding stores in prime retail locations, shop-in-shops operated by the Group in multi-brand environments and factory outlets. At the same time, online sales are also gaining in importance. At present, the Group operates online stores in Germany, Great Britain, France, Spain, Italy, the Netherlands, Belgium, Austria, Switzerland, the United States and China. The number of points of sale owned by the Group saw a net increase of 170 to 1,010 in the past year. In total, the Group generated 54% of its sales from its own retail business in fiscal year 2013.
Group Strategy Group Sales and Results of Operations