Sales by Hugo Boss in Asia rose in latest quarter
Sales by Hugo Boss in Asia rose by 4 per cent in the latest quarter.
However, the German fashion company observed that double-digit growth in Mainland China overshadowed a “tougher” market environment in Hong Kong and Macau.
Worldwide sales rose by 4 per cent, a rate tempered by an 8 per cent decline in currency-adjusted terms in the US market.
First-quarter operating profit fell 22 per cent to €55 million on sales of €664 million.
While Hugo Boss’ share price has slumped by 19 per cent over the past year, the company says its performance has been impacted by reorganisation costs, a higher marketing spend and the strength of the dollar.
Finance chief Yves Mueller said the revamp of key stores should boost the company’s performance with New York and Tokyo flagships already performing well since their reopening and renovations of others in Paris and Chicago soon to be completed.
“Store optimisations will drive performance,” he told an analysts briefing.
A shift in focus to a younger target demographic is also paying dividends for Hugo Boss. Sales of its Hugo brand of casual wear rose in the double digits, compensating for flat sales of the core Boss brand and a marginal decline in business apparel.
First-quarter online sales rose by 26 per cent and the company plans to continue to invest in digitalisation.