Hugo Boss sales in Asia rose four per cent in the first quarter. Worldwide sales also rose four per cent, a rate tempered by an eight per cent decline in currency-adjusted terms in the US market. First-quarter operating profit fell 22 per cent. Double-digit growth in Mainland China overshadowed a tougher market environment in Hong Kong and Macau.
While the German fashion company’s share price slumped by 19 per cent over the past year, its performance has been impacted by reorganisation costs, a higher marketing spend and the strength of the dollar. The revamp of key stores is expected to boost the company’s performance with New York and Tokyo flagships already performing well since their reopening and renovations of others in Paris and Chicago soon to be completed.
A shift in focus to a younger target demographic is also paying dividends for Hugo Boss. Sales of its Hugo brand of casual wear rose in the double digits, compensating for flat sales of the core Boss brand and a marginal decline in business apparel. First quarter online sales rose by 26 per cent and the company plans to continue to invest in digitalization. After a string of profit warnings, Hugo Boss slashed prices in China to bring them closer to European and US levels.
