Currency adjusted, Group-wide retail sales in the third quarter increased 3%, and 2% on a comparable store basis. Operating profit (EBIT) amounted to €80 million on a preliminary basis, below expectations according to Hugo Boss, which cited lower than anticipated sales growth combined with higher expenses relating to management changes. “In particular, in North America, the market environment further deteriorated during the third quarter, hence weighing on the Group’s sales and earnings development. Besides lower local demand, also sales generated with tourists decreased over there. In addition, business in Hong Kong has been substantially negatively affected since the beginning of the political unrest and demonstrations”, said the Group in its preliminary third quarter results.
The Germany headquartered luxury fashion label said it has adjusted its financial outlook for the current year and management now expects currency-adjusted Group sales for the full year 2019 to increase at a low single-digit percentage rate against the previously expected increase at the lower end of a mid-single-digit percentage range. Operating profit (EBIT) is forecast between €330 million and €340 million for the full year.
