• Q3 net profit up 2% to EUR115m
  • Sales up 9% to EUR717m
  • Business impacted during last few weeks of trading
Retail revenues rose 11% during the third quarter

Retail revenues rose 11% during the third quarter

Fashion business Hugo Boss has warned that full-year sales and profits will fall short of expectations as trading falters in Europe and Asia.

The German company recorded sales growth in all regions and distribution channels in the third quarter, with revenues in the Americas and Asia/Pacific up 11% and 13% respectively.

Performance was helped by an improving wholesale business, with the pace of growth accelerating in the company's two core markets, the US and China, Hugo Boss said.

Meanwhile, sales in Europe were up 8% after currency adjustments, while own retail revenues rose 11%, comparable store sales increased 4% and wholesale revenues were up 7%. However, the company said momentum weakened across all regions towards the end of the quarter, particular for its own retail business.

“Thanks to improving business in the Americas and Asia/Pacific together with continued good expansion in Europe, we were able to achieve very solid growth in the third quarter,” said Claus-Dietrich Lahrs, Hugo Boss CEO.

“However, over the last few weeks, our business has been increasingly feeling the effects of the weak performance of the sector in Europe and uncertainties in Asia.”

Hugo Boss now expects full-year sales to rise 6-8% after currency adjustments, with operating profit likely to increase by 5-7%.