Hugo Boss on Tuesday announced a sharper-than-expected reversal for third-quarter profit under the decision of the German fashion group to consent to significant discounts to get rid of the unsold goods accumulated during an exceptionally long summer season.
In its third quarter, gross operating profit (EBITDA) fell 12% to 126 million euros, while sales of the group remained stable with 710 million euros (about 810 million dollars). Analysts questioned by Reuters anticipated an average of 135 million and 715 million, respectively.
The group specified that its sales at its points of sale rose from 3% to the perimeter and exchange rate comparable to 415 million euros and that its online sales increased 38% over the same period last year. Your wholesale channel was hired.
Hugo, the brand of the group focused on the millennium, was reduced by 11% in sales in the third quarter, with 98 million euros. In the rematch, Boss saw its sales progress with a 3% increase, with 612 million euros.
The group saw a 2% decline at a steady rate of change in its sales in Europe, with 462 million euros. The contrast is striking between the 11% growth in the UK and the 13% and 8% decline in Germany and France, respectively. On the other hand, in America, its sales increased 5% with 142 million euros and 7% in Asia Pacific with 82 million. Its licensing activities contributed 19 million euros.
The German group, with its brands Hugo and Boss, said a positive development of the business in October strengthened its recovery expectations for the fourth quarter, traditionally the strongest in terms of sales, and reiterated its year-round sales forecasts and your benefits
"I am convinced that we will return to sustainable profitability next year," company president Mark Langer said in a statement.
On Tuesday, a new collaboration with online retailer Zalando was announced to strengthen its digital sales, which jumped 38% in the third quarter. The brand should benefit from the distributor's logistical support. Zalando began to propose Boss Businesswear on its platform.
Hugo Boss has confirmed its annual goals, which are expected to increase its turnover and net profit by between 1% and 5%. On November 14, Mark Langer will detail the evolution of his strategy during the group's general assembly.
Copyright © 2018 FashionNetwork.com All rights reserved.