The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
METZINGEN, Germany — Hugo Boss AG said full-year sales and profit will be at the lower end of its guidance range as it struggles to sell its clothes in the US.
Revenue in the second quarter, adjusted for currency swings, declined by 5 percent in the US, Boss said Thursday. The suit-maker cited weak sales to tourists and a high level of discounting by apparel retailers, among other factors.
The shares fell as much as 3.8 percent in early Frankfurt trading, their biggest intraday decline in two months.
The US decline pared companywide revenue growth to 2 percent in the quarter and prompted Boss to say sales and earnings will only reach the lower end of its guided range for the full year.
The company had already reported a plunge in first-quarter earnings amid the weakness in the U.S., in a setback for Chief Executive Officer Mark Langer’s turnaround plans.
Sales in Europe and the Asia-Pacific region rose in the second quarter, Boss said, and operating profit should “significantly accelerate” in the second half after rising 3 percent in the latest three months.
By Richard Weiss; editors: Erhard Krasny and Eric Pfanner.
Join us for a special Masterclass, as BoF’s luxury editor Robert Williams, along with a panel of experts, unpack our latest case study Inside Hermès’ Best-in-Class Leather Goods Strategy.
The Cannes film festival is no stranger to high fashion. Entrance-making gowns and jewels are almost mandatory, particularly after the luxury jeweller Chopard redesigned the festival’s highest prize, the Palme d’Or, in 1998.
The privately-held fashion and beauty giant’s sales rose 17 percent to $17 billion in 2022. Private salons for top-spending clients, emerging technologies and a new London headquarters are on new CEO Leena Nair’s agenda.
How a unique approach to supply chain, design, communications and retail has powered blockbuster demand for iconic bags like the Birkin and Kelly, enabling the French leather goods house to face down rivals and become a global megabrand with a market capitalisation greater than Nike’s.