Hugo Boss has reported stable sales in the third quarter, but regional disparities reveal underlying challenges.
- Sales in the Americas and EMEA showed growth, contrasting with declines in the Asia Pacific region.
- Despite stable revenues, Hugo Boss’s earnings before interest and taxes dropped by 7%.
- The fashion brand continues to rely on its fragrance business, which saw a significant uptick in sales.
- CEO Daniel Grieder remains optimistic, outlining plans for strategic investments to bolster the brand.
Hugo Boss’s third-quarter performance demonstrates regional variances, with sales in the Americas and EMEA (Europe, the Middle East, and Africa) seeing gains. However, these positive results are offset by a notable downturn in the Asia Pacific region, where sales fell by 7% due to lukewarm demand in China.
Revenue growth in the Americas reached a 4% increase, largely driven by double-digit growth in Latin America. EMEA also experienced a modest 1% rise in currency-adjusted sales, helped by better sales figures in Germany, despite lower sales in France and the UK.
Conversely, the Asia Pacific market struggled, with a 7% drop in sales. Weak consumer interest in China continues to impact results negatively.
Despite stable overall sales figures, Hugo Boss saw its earnings before interest and taxes (EBIT) decrease by 7%, falling to €95 million (£80 million). Earnings per share also fell by 13%, reaching €0.79 (£0.66). The fragrance division, a part of its license business, showed resilience, with a 12% increase in revenue.
Looking forward, CEO Daniel Grieder expressed cautious optimism, stating that Hugo Boss will persist in its strategic investments and projects to enhance brand strength and consumer engagement. He emphasised the importance of leveraging the company’s operational platform for better cost management.
Hugo Boss faces mixed regional sales results but remains committed to strategic growth and operational efficiency.
