German fashion brand Hugo Boss‘ fourth quarter turnover dropped 1 % to 725 million euro. Particularly its American performance suffered, but the company met its own full-year expectatiosn nonetheless.
Growth in Asia and Europe
In its fourth quarter, Hugo Boss’ European turnover grew 2 % thanks to excellent performances in the United Kingdom and Germany. However, there was a 14 % slump in North and South America, while Asian turnover grew 5 %. Despite the turnover drop, the company is happy with its results: “Fourth quarter results underline that we are on the right track”, says CEO Mark Langer. “In China, we completed the turnaround in the second half of the year. In Europe, we held up well in a difficult market environment.”
Retail sales grew 4 % in the fourth quarter, although there was a 3 % like-for-like turnover drop, which is a smaller drop than last year. Wholesale turnover dropped 13 %.
For its full fiscal year, preliminary results point to a 2.693 billion euro turnover, down 4 % compared to the year before. Following exchange rate fluctuations, the drop was limited to 2 % and despite that, this was all within Hugo Boss’ expectations. The company also expects a 17 to 23 % profit drop, but that will only be revealed on 9 March, when it presents its full financial results.
