Hugo Boss reaffirms 2023 outlook amid luxury downturn
Hugo Boss on Thursday (Nov 2) reaffirmed its full-year outlook after posting quarterly results in line with analysts’ expectations, supported by strong demand for its products despite a broader downturn in the luxury sector.
The German fashion house reported a 15 per cent rise in third-quarter sales to 1.03 billion euros (S$1.49 billion), spurred by the launch of its fall/winter 2023 collections in August. Analysts had forecast sales of 1.02 billion euros in a poll provided by the company
“Hugo Boss remains one of the few fashion brands still growing in double-digits,” Citi analysts said in a note to investors, citing successful product design and diversification and effective marketing among other factors.
Shares were up 4.8 per cent at 0920 GMT. As of Wednesday’s close, the stock was 27 per cent off their highest price so far this year, which was reached in July.
The luxury sector, hit by slowing demand for fashion and accessories particularly in the US and Europe, has been further hampered by a slow start to the European fall/winter season amid unusually warm weather.
Hugo Boss, however, had started the fourth quarter strong, CEO Daniel Grieder told reporters in a call.
A NEWSLETTER FOR YOU
Lifestyle
Our picks of the latest dining, travel and leisure options to treat yourself.
The company reiterated its annual guidance for sales of 4.10-4.20 billion euros and an operating profit of 400-420 million euros, corresponding to 20 per cent-25 per cent growth.
Its quarterly earnings before interest and taxes (Ebit) rose 12 per cent to 103 million euros, matching analysts’ estimate of 102 million euros. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Yangzijiang Financial says its maritime entry not a conflict of interest with shipbuilding unit
Trafigura faces off with aluminium bulls over huge metal stash
Seatrium bags S$11 billion in FPSO contracts from Petrobras
Pound boosted with BOE seen staying on hold until after election
AEM, UMS, NetLink and Baker Tech directors acquire stock
What to expect as US moves towards faster stock settlement