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Hugo Boss Profit Rises on Europe and Asia

The company is pinning its hopes of revival under the leadership of its new chief executive Mark Langer, who said the company will return to growth next year.
Hugo Boss Autumn/Winter 2016 Campaign | Source: Hugo Boss
By
  • Bloomberg

FRANKFURT, Germany — Hugo Boss AG, the ailing German clothier, said earnings rose as its turnaround took shape and the company kept a tight grip on costs.

Adjusted operating profit advanced 4 percent in the three months through March, the company said in a statement Wednesday. Boss reiterated the measure will rise or fall as much as 3 percent this year.

Boss is seeking to revive under the leadership of Mark Langer, the former finance chief who was promoted to chief executive officer a year ago. In November, Langer said the company will return to growth in 2018 as it eliminates brands, slows down store expansion and sells more apparel online.

Sales in the quarter advanced 1 percent to €651 million ($711 million), helped by gains in Europe and Asia, ahead of the average analyst estimate of €641.4 million collected by Bloomberg.

The shares have advanced 19 percent this year, compared with a 12 percent gain for Germany’s MDAX benchmark index for medium-sized companies.

The company, whose focus has long been menswear, is reintroducing lower-priced products for retail stores under the less expensive Hugo brand and moving away from luxury products and womenswear. The company is also closing unprofitable stores after doubling its shop network between 2010 and 2015.

By Richard Weiss; editors: Eric Pfanner, Thomas Mulier and John Bowke.
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