German luxury fashion brand Hugo Boss reported that third-quarter sales fell by 4% to €989 million. On a like-for-like basis, sales dropped by 1%, due to weak retail demand in China and the UK, and a strong euro.
While markets like Germany, France and the US showed some strength, the Asia-Pacific region continued to drag. The company warned that currency headwinds and global economic uncertainty would keep pressure on results.
As a result, Hugo Boss now expects full-year revenue and operating profit to land at the lower end of its guidance range: revenues between €4.2 billion and €4.4 billion, and EBIT in the €380-€440 million range.
The company is carrying out its “CLAIM 5” strategy aimed at modernising its brand, boosting digital sales and improving productivity. But the soft demand in Asia and macro-economic turbulence remain key challenges.
