Hugo Boss third quarter impacted by U.S. market slowdown

Published:  14 October, 2019
Hugo Boss Menswear

Currency-adjusted Group sales in the third quarter of 2019 remained on the prior-year level; up 1% on a reported basis to €720 million. Slowing demand in the U.S. and the ongoing protests in Hong Kong are said to have affected the Group’s overall sales development.

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.

Hugo Boss autumn/winter 2019