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Andrea Felsted

Hugo Boss Suits Are Out of Favor With Americans

The German clothes specialist is having a tough time in the U.S. This doesn’t bode well for the luxury industry, which is already worried about Asia.

Suits you sir?

Suits you sir?

Photographer: AFP Contributor/AFP

As if the luxury goods industry didn’t have enough to worry about with the troubling developments in its key Asia markets, Hugo Boss AG has raised the specter of things going wrong in America too.

The maker of smart suits said on Thursday that its sales (when excluding currency movements) and earnings growth would be at the lower end of its anticipated range this year. It blamed weakness in the U.S., which accounted for 14% of revenue in the first half. The company now expects group sales to rise by 4%-5% in 2019 and a 7%-8% increase in earnings before interest and tax.