Hugo Boss reports stable sales of €1.02bn for Q3, with gains in some regions offset by losses in others.
- Sales in EMEA increased by 1%, with Germany compensating for weaker performance in France and the UK.
- The Americas showed a 4% rise in revenue, driven by strong growth in Latin America.
- However, the Asia Pacific region struggled with a 7% decrease in sales, largely due to weak demand in China.
- The company’s profits fell, with EBIT seeing a 7% drop and earnings per share down by 13%.
Hugo Boss has maintained stable sales figures at €1.02bn (£863m) for the third quarter, with regional variations affecting overall performance. In EMEA, sales saw a slight increase of 1%, attributed to improvements in the German market which helped counterbalance lower sales figures in France and the United Kingdom.
The Americas reported a robust 4% revenue increase, continuing a positive trajectory backed by double-digit growth in Latin America. This region’s performance stands in contrast to the declining figures from Asia Pacific, where sales fell by 7%, a drop primarily driven by ongoing weak consumer demand in China.
The company’s license business reported a significant 12% revenue boost, particularly in the fragrance sector. Despite these positive aspects, Hugo Boss faced a 7% decrease in EBIT, totalling €95m (£80m), and a notable decline in earnings per share by 13%, now standing at €0.79 (£0.66).
In light of these mixed results, Hugo Boss has upheld its forecast for the full year, maintaining an expected group currency sales increase between 1% and 4%. This prediction follows a prior adjustment in July, which revised the forecast from a 3% to 6% anticipated growth.
Chief Executive Daniel Grieder emphasised the company’s ongoing strategic investments and the importance of enhancing brand strength and customer engagement, preparing for the final quarter of 2024. Grieder remarked, “In the third quarter, Hugo Boss achieved solid top-line improvements despite the ongoing weak consumer sentiment. This is a clear testament to the power of Boss and Hugo.”
Overall, Hugo Boss navigates a challenging market environment with stable sales but decreased profitability, focusing on strategic growth initiatives.
