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.



Famed Indian Designer Rohit Bal Dies

Indian designer Rohit Bal (center) gestures at his fashion show in Mumbai in 2019. Sujit Jaiswal / AFP
Indian designer Rohit Bal (center) gestures at his fashion show in Mumbai in 2019. Sujit Jaiswal / AFP
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Famed Indian Designer Rohit Bal Dies

Indian designer Rohit Bal (center) gestures at his fashion show in Mumbai in 2019. Sujit Jaiswal / AFP
Indian designer Rohit Bal (center) gestures at his fashion show in Mumbai in 2019. Sujit Jaiswal / AFP

Rohit Bal, one of India's most acclaimed fashion designers, has died, his colleagues said Friday.
Media reports said he died at the age of 63 after a long illness.
"We mourn the passing of legendary designer Rohit Bal," the Fashion Design Council of India (FDCI) said in a statement on Instagram.
"Known for his unique blend of traditional patterns with modern sensibilities, Bal's work redefined Indian fashion, and inspired generations."
According to his website, Bal graduated from St. Stephen's College in New Delhi with a degree in history.
He then worked in his family's export business for a few years before launching his label and designer line in 1990.
"From the village crafts and traditional methods of design that India is so rich in, to the transient phenomenon of the subcontinent's urban landscape, the designer brings them all to life."
FDCI chairman Sunil Sethi said on Instagram that the passing of Pal, popularly called Gudda, "will leave a void in the fashion design space forever."
"Everyone admired him for his attention to detail, how beautifully his lotus bloomed on modern shapes and his understanding of what modern women desired," Sethi said.