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.



Shein, Temu Gear Up for 2026 UK Trial over Copyright and Competition Claims

FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo
FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo
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Shein, Temu Gear Up for 2026 UK Trial over Copyright and Competition Claims

FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo
FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo

Online fast-fashion platforms Shein and Temu are gearing up for a 2026 trial at London's High Court, with the rivals trading allegations of copyright infringement and anti-competitive behavior in competing lawsuits.
Shein sued Temu in Britain last year, accusing Whaleco UK Limited – whose ultimate parent is Temu's owner PDD Holdings – of breach of copyright in relation to photos of some products available on the Temu platform.
Temu hit back with a counterclaim in February, accusing Shein of breaking British competition law by tying suppliers of fast-fashion products to exclusive agreements, a claim it values at 4.2 million pounds ($5.5 million) and which Shein denies.
Temu's lawyers said in court documents for a preliminary hearing on Tuesday that Shein is "flooding Temu with unwarranted notices of copyright infringement, disrupting the sale of products".
Their cases at London's High Court are expected to come to trial towards the end of 2026, Shein's lawyers said in court documents.
The London lawsuit is one leg of a global legal battle between the two rivals. Temu sued Shein in the US in December, with Shein filing its own case against Temu in August.
Both Shein and Temu have rapidly expanded in international markets with low-cost clothing, accessories and gadgets, though they have come under increased scrutiny.
Shein has faced questions over its treatment of workers and environmental record, particularly ahead of a potential London listing. It has previously said it is committed to respecting human rights and has a zero-tolerance policy for forced labor.
Temu, meanwhile, is facing an investigation from the European Commission over whether it may have breached rules aimed at preventing the sale of illegal products. Temu has said it will cooperate with regulators.