Hugo Boss goes dull in the quarter: sales run steady, though profits slump (-22%). Good news from China and online sales

Sales have been running slightly well. Conversely, profits have been negative. In 2019 first quarter, Hugo Boss’s revenues amounted to 664 million euros, therefore increasing by 1%; despite that, operating profits dropped by 22%, as they reached 55 million euros. Both accomplishments turned out to be below analysts’ average expectations: as reported by Reuters, they had predicted 669 million euros and 65 million euros respectively. Such disappointing figures most depend on America, both for currency trends and for sales, which declined by 8%. In contrast, the good news comes from China, where comparable sales enjoyed a boost in double figures. Likewise, the group’s online business increased by 26%, whereas revenues coming from the wholesale business have been decreasing. Despite the downturn in profits in the first quarter of the year, Hugo Boss confirmed their business outlook throughout 2019. “Looking at our steady development in the Chinese market, which is strategic to us, alongside the remarkable performance of our online business, our strategy proves to be effective and successful”, announced Mark Langer, Hugo Boss chief executive officer. He also pointed out: “At the same time, the US market turned out to be less profitable than expected. Furthermore, the investments in the computerisation of our business model and our corporate organization considerably affected the group’s operating profits in the first quarter. Yet, I am fully confident we will achieve our goals throughout the year, and even after”.

Pictures: Shutterstock and, in the box, taken from hugoboss.com

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