German fashion label Hugo Boss AG cut its sales and earnings forecasts for 2015 amid deteriorating third-quarter results in China and the U.S.
Earnings before interest, tax, depreciation and amortization will rise by 3 percent to 5 percent, before special items, the company said in a statement after markets closed Thursday, compared with its previous projection of 5 percent to 7 percent. Revenue will grow in the same range, Hugo Boss said, having previously guided to a mid-single-digit gain.
The clothier said third-quarter sales declined in China, where luxury labels are struggling to contend with softening demand. Weaker spending by tourists led to a “negative development” of sales in the U.S., it said. The statement came hours after U.K. trenchcoat maker Burberry Group Plc forecast a second year of declining profit because of weakness in Asia.
“The sales development of Hugo Boss was marked by high levels of volatility in the third quarter,” the company said. “The group’s own retail business in particular developed unevenly,” with Europe remaining strong, it said.
Third-quarter sales declined 1 percent, excluding currency shifts, Hugo Boss said. In euro terms, revenue rose 4 percent to 744 million euros ($849 million).
Ebitda before special items declined by 8 percent to 168 million euros, the company said.
Link to Statement: Link