Hugo Boss confirms 42% drop in Q2 operating profit
Corrects headline, paragraphs 1, 4 to say Q2 EBIT figure was confirmed, removes reference LSEG estimates
By Ozan Ergenay and Tristan Veyet
Aug 1 (Reuters) -Hugo Boss BOSSn.DE confirmed the 42% drop in its second-quarter operating profit on Thursday, two weeks after the German fashion house slashed its annual forecasts and reported preliminary numbers, as economic and geopolitical challenges dampen global consumer demand.
The luxury sector is grappling with weaker sales and margin pressures as inflation-hit shoppers cut back spending on designer fashion. A property slump and job insecurity in China has exacerbated the problem.
"The weakening consumer sentiment in most markets led to a rapid slowdown in growth across the entire industry, which we could not completely escape from," CEO Daniel Grieder said in a statement.
Hugo Boss said its earnings before interest and tax (EBIT) fell to 70 million euros ($75.8 million) in the second quarter, from 121 million euros a year earlier, as reported last month.
Its quarterly net income slumped 50% year-on-year to 39 million euros.
Earnings from luxury companies this quarter have demonstrated the strain that the sector is under, with both LVMH and rival Kering falling short of forecasts.
($1 = 0.9237 euros)
Reporting by Ozan Ergenay, Tristan Veyet in Gdansk, additional reporting by Linda Pasquini; editing by Milla Nissi
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
