Hugo Boss predicts sales recovery after Hong Kong hit

November 5, 2019 by
Nico Hoeijmans

fashion2Luxury retailer Hugo Boss expects sales and operating profit to recover in the fourth quarter, reports Reuters. This is expected to be realised with more modern stores and growth in mainland China and e-commerce. Earlier, the German fashion house reported falling sales in the United States and Hong Kong.

In October, Hugo Boss cut its 2019 earnings forecast. It reported preliminary third-quarter results that were below its expectations which were confirmed last Tuesday. According to Chief Executive Mark Langer, a “significant” increase in operating profit in the fourth quarter is expected thanks to the citing expansion in mainland China and its booming online business. The online business grew by 36% in the Q3.

The luxury fashion house also expects to benefit from investments in sprucing up its stores, like its flagship on the Champs Elysee in Paris, as well as positive reception to recent fashion shows in Milan and Shanghai.

The Asian market

In total, sales in Q3 fell 8% in the Americas on a currency-adjusted basis. Hugo Boss blamed this on a fall in demand in the United States from locals and tourists, as well as a decline in the wholesale channel. Contrary, online sales grew. In Asia, sales growth slowed to 2% due to a significant sales decline in Hong Kong, partially offset by continued strong momentum in mainland China.

Tagged with:
Pull&Bear is launching PBShuffle, a new video marketing strategy
Pull&Bear is launching PBShuffle, a new shopping experience focused on vertical video, and offering video purchasing. This platform will be available on Pull&Bear's iOS and Android app.  From now on,...
March 1, 2024
IRX & eDX learning programme: Waitrose, Eve Sleep, Oliver Bonas, Screwfix & Trustpilot!
Waitrose, Eve Sleep, Oliver Bonas, Screwfix & Trustpilot are among the big brands spearheading the conference and workshop programmes at IRX (InternetRetailing Expo) & eDX (eDelivery Expo) taking place on...
May 9, 2022
What are Google's Performance Max Campaigns?
Google has launched a new feature and tool called Performance Max, and it is aimed at supporting online entrepreneurs. This new tool is actually a new Google ads campaign type,...
May 6, 2022
Top crossmenu

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.