Gloomy consumers pushed Hugo Boss turnover and profit down in the past quarter. The fashion chain responds by cutting costs and optimising purchasing.
Global decrease
The company’s turnover fell by 2 % to 999 million euros: in Europe the decline was 0.5 %, in the United States 3 % and in Asia even 6 %. Although gross margins remained stable, the operating result (- 12 %) and net profit (- 8 %) fell. The fashion company refers to the increasing macroeconomic uncertainty, which had a negative effect on consumer confidence.
CEO Daniel Grieder acknowledges that Hugo Boss is unable to single-handedly change global consumer sentiments, but vows to focus on what he can control. Hugo Boss aims for additional cost cuttings and optimising its global purchasing activities. The company is also investing in marketing, such as the launch of a collection co-designed by David Beckham, which should improve profitability as the year progresses.
