Hugo Boss has performed slightly below expectations in its second quarter: sales were disappointing, especially in the United States.
Strong performance in Asia
The luxury clothing label saw its global turnover increase by 2 % to 675 million euros in the second quarter. Operating profit went up 3 % to 76 million euros: both results are slightly below the analysts' consensus of 679 and 79 million euros respectively.
The German fashion house did particularly well in Asia, with a growth of 8 %. There was also an increase in sales in Europe, mainly driven by France (+ 6 %) and the United Kingdom (+ 2 %). In Germany itself, the brand had to swallow a 5 % drop. Sales in the United States fell by 3 %, which Hugo Boss blames on the consequences of a tax reform, weaker tourist sales and a pronounced promotional market.
Based on the results of the first six months of the year, Hugo Boss slightly lowers its annual forecast: the company is now counting on a growth of around 4 %.