Metzingen, October 10, 2019. The management of HUGO BOSS AG updates its outlook for full year 2019. In doing so, HUGO BOSS takes account of the persistent macroeconomic uncertainties that increasingly weigh on consumer demand. In particular, in North America, the market environment further deteriorated during the third quarter, hence weighing on the Group’s sales and earnings development. Besides lower local demand, also sales generated with tourists decreased over there. In addition, business in Hong Kong has been substantially negatively affected since the beginning of the political unrest and demonstrations.
On a preliminary basis, currency-adjusted Group sales in the third quarter remained on the prior-year level. This represents an increase of 1% in the reporting currency to EUR 720 million. Group-wide retail sales increased 3% in total and 2% on a comp store basis, both adjusted for currency effects. Operating profit (EBIT) in the third quarter amounted to EUR 80 million on a preliminary basis (excluding the effects of IFRS 16; prior year: EUR 92 million), and thus below expectations. Besides lower than anticipated sales growth, higher expenses relating to management changes also contributed to this.
Against this background, HUGO BOSS adjusts its financial outlook for the current year. Management now expects currency-adjusted Group sales for the full year 2019 to increase at a low single-digit percentage rate (previously: expectation of an increase at the lower end of a mid-single-digit percentage range). At the same time, HUGO BOSS now expects to generate an operating profit (EBIT) of between EUR 330 million and EUR 340 million for the full year (excluding the effects of IFRS 16; prior year: EUR 347 million). Management’s previous outlook provided for an increase in EBIT at the lower end of a high single-digit percentage range.
”Despite heightened macroeconomic uncertainties that we are currently facing, we remain focused on successfully executing against our strategic initiatives,“ says Mark Langer, Chief Executive Officer of HUGO BOSS AG. “Structurally improving our profitability plays a decisive role in that regard. We adhere to our mid-term target of an EBIT margin of 15%.“
HUGO BOSS will release its full set of third quarter results on November 5, 2019, together with a detailed outlook for the fiscal year 2019. For financial analysts and investors, the Managing Board will host a conference call including a webcast also on that day.
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