Slower growth in the American market and lousy market conditions in Asia have resulted in a disappointing third quarter for German fashion company Hugo Boss. Because of that, the company is adjusting its full fiscal year forecast downward.
Much lower EBITDA
The company's total turnover dropped 1 % prior to exchange rate fluctuations, but if those are added in, the company's turnover would have increased 4 % to 744 million euro. Sales in its own stores remained stable compared to a year ago, in local currency. European sales were along the lines of what was expected, but Asian, North and South American sales all experienced setbacks. These average results meant Hugo Boss' EBITDA dropped 8 % to 168 million euro.
That is why the company has now adjusted its full-year expectations downward and now predicts a 3 to 5 % turnover increase, with EBITDA numbers to do similarly. Hugo Boss will reveal its full third quarter numbers on 3 November.