Hugo Boss Third Quarter Operating Profit Beats Expectations on Better Cost Control

New Hugo Boss logo and their website shop are seen in this illustration taken, May 17, 2024. (Reuters)
New Hugo Boss logo and their website shop are seen in this illustration taken, May 17, 2024. (Reuters)
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Hugo Boss Third Quarter Operating Profit Beats Expectations on Better Cost Control

New Hugo Boss logo and their website shop are seen in this illustration taken, May 17, 2024. (Reuters)
New Hugo Boss logo and their website shop are seen in this illustration taken, May 17, 2024. (Reuters)

Hugo Boss' third-quarter operating profit slightly beat market expectations on Tuesday, as the company reported a 1% increase in currency-adjusted group sales amid persistently weak demand in China.

Quarterly earnings before interest and tax (EBIT) were down 7% on the year at 95 million euros ($103.3 million), but above analysts' estimate of 90 million euros in a company-provided poll, helped by cost management, it said.

Hugo Boss shares were indicated 2.5% higher in Lang & Schwarz premarket trade.

"Estimates for the coming quarter should be anchored today," analysts at Jefferies wrote in a note to clients, highlighting improved sales in September, better cost control and Hugo Boss' confirmed guidance for the year.

After a 2022 brand revamp boosted its resilience last year, the upmarket fashion label has been grappling with weakening consumer demand despite increasing investment in marketing and production capacity in recent months.

Currency-adjusted sales were 1.029 billion euros during the three months, slightly up from 1.027 billion last year and broadly in line with market expectations of 1.023 billion euros.

"Particularly in China, the overall market environment was affected by persistent subdued consumer demand," the company said in a statement.

Quarterly currency-adjusted sales in its third-biggest market Asia/Pacific fell 7% to 110 million euros, but increased 1% in the Europe, Middle-East and Africa region and 4% in the Americas.

The company said improvements in Germany offset softer sales trends in France and in Britain, while it also saw further sales improvements in the United States.

Hugo Boss, which is taking additional measures to enhance efficiency and effectiveness, especially around sourcing, said it continued to focus on cost control to support profitability into the fourth quarter. It maintained its full-year sales and earnings forecasts after slashing them earlier this year.



Christian Dior ‘Designer of Dreams’ Exhibition Opens in Riyadh

Running from November 21 to April 2, the exhibition invites visitors on an artistic journey through the exceptional creativity of Dior's creative directors. SPA
Running from November 21 to April 2, the exhibition invites visitors on an artistic journey through the exceptional creativity of Dior's creative directors. SPA
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Christian Dior ‘Designer of Dreams’ Exhibition Opens in Riyadh

Running from November 21 to April 2, the exhibition invites visitors on an artistic journey through the exceptional creativity of Dior's creative directors. SPA
Running from November 21 to April 2, the exhibition invites visitors on an artistic journey through the exceptional creativity of Dior's creative directors. SPA

The "Christian Dior: Designer of Dreams" exhibition was officially inaugurated by Faisal Bafarat, CEO of the General Entertainment Authority, at the Saudi National Museum, as part of the Riyadh Season festivities.
Running from November 21 to April 2, the exhibition invites visitors on an artistic journey through the exceptional creativity of Dior's creative directors, showcasing iconic designs from 1947 to the present day.
A standout feature of the exhibition is a section inspired by the AlUla oasis, a historical treasure in the Madinah region. The section captures the natural beauty of the desert with designs that reflect the sun's golden rays over the dunes, seamlessly blending heritage with contemporary sophistication. Visitors can also enjoy the event's "Dior Café," adding elegance to the experience.
The exhibition presents a rare opportunity for fashion and art enthusiasts to explore the rich history of one of the world's most celebrated fashion houses.