Hugo Boss earnings slip 11% in quarter amid subdued consumer demand
Press Hub UCapital
Share:
Hugo Boss AG reaffirmed its full-year outlook on Tuesday despite posting a weaker financial performance for the third quarter. The Metzingen-based luxury fashion house reported an 11% decline in net income, down to €56 million for the quarter ending September 30, from €63 million a year earlier. Earnings per share also fell to €0.79 from €0.91.
Hugo Boss earnings slip 11% in quarter amid subdued consumer demand
Sales held steady at €1.03 billion, while cost of sales increased by 1.5% to €410 million from €404 million. Operating expenses rose 0.8%, reaching €524 million compared to €520 million in the same period last year.
Hugo Boss attributed its challenges to softer consumer demand, particularly in China, citing ongoing macroeconomic and geopolitical uncertainties impacting consumer sentiment.
Regionally, sales in Europe, the Middle East, and Africa grew by 1.4% to €662 million. Sales in the Americas remained flat at €228 million, while the Asia Pacific region saw an 8.3% drop to €110 million.
CEO hails third-quarter results
Chief Executive Officer Daniel Grieder commented, “I am pleased that in the third quarter we have made notable strides in improving cost efficiency. By optimizing our global sourcing activities and rigorously executing cost measures introduced earlier this year, we have enhanced productivity and effectiveness across our operations, positively impacting our bottom line.”
As the company heads into the crucial final quarter of 2024, Grieder emphasized continued investment in strategic initiatives to strengthen the Boss and Hugo brands and deepen customer engagement. "At the same time, we remain focused on leveraging our robust operational platform and identifying additional cost efficiencies," he added.
Hugo Boss maintained its full-year guidance, expecting sales growth of 1% to 4% in group currency from €4.20 billion in 2023. Net income is forecasted to range between a 15% decline and a 5% increase from the previous figure of €270 million.
