<\/p>\n
\n\tBERLIN \u2013 Hugo Boss\u2018 painful year continued in the third quarter, with the German menswear specialist reporting another sales drop and lowering guidance for the full year.<\/p>\n
\n\tHugo Boss sales dipped 5 percent to 946 million euros in the three months to Sept. 30, representing a 4 percent decrease in currency adjusted terms.<\/p>\n
\n\t\u201cIn the third quarter, our top line performance reflected both the deliberate strategic realignment of our business and a persistently subdued consumer environment,\u201d Hugo Boss chief executive officer Daniel Grieder said in a statement, referring to a strategic \u201cquality over quantity\u201d reset initiated late last year. \u201cAt the same time, we made further progress in improving our gross margin and operating efficiencies.\u201d<\/p>\n
\n\tThe biggest sales drop came in Hugo Boss\u2019 home market \u2014 also its largest \u2014 of Europe, the Middle East and Africa, where sales fell 7 percent to 598 million euros.<\/p>\n
\n\t\u201cWhile Germany showed a comparatively more resilient performance, the U.K. and France recorded more pronounced declines amid subdued consumer demand,\u201d the company said.<\/p>\n
\n\tSales in the Americas and Asia Pacific were flat in the third quarter.<\/p>\n
\n\tIn terms of product categories, sales of the brand\u2019s mainstay, the more formal Boss collection, eased 2 percent to 813 million euros. Within that category, menswear \u201cproved comparatively more resilient [while] womenswear continued to be affected by its ongoing repositioning,\u201d the company said.<\/p>\n
\n\tMenswear makes up the majority of Boss sales and Boss womenswear was only recently relaunched with the fall 2027 collection.<\/p>\n
\n\tSales of the company\u2019s more casual offerings under the Hugo label slid 16 percent. This reflected the category\u2019s \u201congoing strategic refinement,\u201d Hugo Boss explained.<\/p>\n
\n\tAs a result of ongoing market volatility, the company said it was lowering its guidance for the full year. <\/p>\n
\n\tThe company had previously expected sales to fall in the mid- to high-single digits in currency adjusted terms, and operating profit to decrease to between 300 million euros and 350 million euros. But now the German brand forecasts sales will decline in the high single-digits and operating profit will come in between 250 million and 300 million euros.<\/p>\n
\n\tHugo Boss had previously predicted a painful year in 2026, saying it did not expect to return to growth until 2027.<\/p>\n
\n\tAfter several years of rocketing growth due to an extravagant marketing spend and low comparables, the German marquee brand was forced back down to earth and has seen sales growth reduced to single digits or negatives over the past two years.<\/p>\n
\n\tIn the third quarter, operating profit fell 15 percent to 81 million euros, with operating margin shrinking to 8.6 percent from 9.6 percent during the same period last year.<\/p>\n
\n\tThe 100 million euro change in operating profit guidance is likely to upset investors, including the new majority shareholder Frasers Group. Over past quarters, analysts have highlighted the company\u2019s newfound focus on efficiency and profit as a bright spot.<\/p>\n
#Ongoing #Sales #Drop #Lowers #Guidance<\/p>\n","protected":false},"excerpt":{"rendered":"
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