• Q3 profit declines 22.8% to EUR88.5m
  • Sales up 4% to EUR744.1m
  • 2015 will be a year of "solid growth"
Hugo Boss says 2015 will be a year of solid growth

Hugo Boss says 2015 will be a year of solid growth

German fashion brand Hugo Boss has said fiscal 2015 is shaping up to be a year of "solid growth", despite posting a double-digit decline in third-quarter net profit. 

Net profit amounted to EUR88.5m (US$97.2m) for the period, a drop of 22.8% compared to EUR114.7m in the prior year. However, gross margin improved 40 basis points to 64.5% from 64.1% a year ago.

Sales increased 4% to EUR744.1m from EUR716.5m last year. By region, sales grew 5% in Europe and the Americas, while licenses edged up 1% and Asia/Pacific fell 3%. Retail sales grew 12% to EUR399.2m, but wholesale sales fell 4% to EUR329.9m. 

“2015 will be a year of solid growth for Hugo Boss,” says CEO Claus-Dietrich Lahrs. “Our business in Europe is growing. However, this was not sufficient last quarter to offset the effects of the more muted performance in China and the United States. Trends deteriorated in both markets. That said, we assume that sales and earnings will improve in the final quarter.” 

The company last month cut its full-year outlook due to market troubles in Asia, and expects annual currency-adjusted sales to rise 3-5% and EBITDA before special items is also projected to be between 3% and 5%.