Amid weak sales in the Americas and Hong Kong in its fiscal third quarter, Hugo Boss adjusted its outlook downwards.
Instead of sales increase in the mid-single digits for 2019, Hugo Boss now expects a gain well below the 5 percent mark. Operating profit is expected somewhere between 330 and 340 million euros. Last year’s operating profit was 347 million euros.
In the third quarter, sales were flat at 720 million euros after currency adjustments.
While some territories saw an increase – with Europe and Asia-Pacific notching up a 2 percent gain in currency adjusted sales – sales in the Americas slipped by 8 percent.
While sales in Asia-Pacific were positive, currency-adjusted sales fell 1 percent in China, compared to the previous year. Hugo Boss has put a particular focus on this market, recently staging a pre-fall runway show in Shanghai and sponsoring an art prize there – the Hugo Boss Asia Art Award. The company blamed unrest in Hong Kong for the slip.
In Europe, where Hugo Boss does most of its business, sales growth of 5 percent in Britain contrasted with a 5 percent decrease in sales at home in Germany.
Online sales grew 36 percent. Digital improvements are a key pillar of chief
Hugo Boss Predicting Less Growth, Less Profit
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