Hugo Boss reported another sales decline in the third quarter and lowered its full-year outlook, citing continued market volatility and subdued consumer demand. Sales fell 5 percent to 946 million euros in the three months to September 30, or 4 percent on a currency-adjusted basis.
The company’s largest region, Europe, the Middle East and Africa, recorded a 7 percent decline to 598 million euros. Hugo Boss said Germany performed comparatively resiliently, while sales fell more sharply in the U.K. and France. Revenue was flat in both the Americas and Asia Pacific.
Sales of the core Boss collection decreased 2 percent to 813 million euros. Within the category, menswear was comparatively resilient, while womenswear continued to be affected by its repositioning. The more casual Hugo label fell 16 percent, which the company attributed to ongoing strategic refinement.
Chief Executive Daniel Grieder said the quarter’s sales reflected the company’s strategic realignment and a persistently subdued consumer environment. He added that Hugo Boss had continued to improve gross margin and operating efficiencies.
Hugo Boss now expects full-year sales to decline by a high-single-digit percentage and operating profit to reach between 250 million and 300 million euros. Its previous forecast called for a mid- to high-single-digit currency-adjusted sales decline and operating profit of 300 million to 350 million euros.
Third-quarter operating profit fell 15 percent to 81 million euros. The operating margin narrowed to 8.6 percent, compared with 9.6 percent in the same period last year. The company had previously said it did not expect to return to growth until 2027.
Sources: WWD.