Hugo Boss trims outlook on slowing economy
BERLIN (Reuters) - German fashion house Hugo Boss trimmed its 2014 sales and profit outlook on Tuesday due to the slowing European economy even as it reported third-quarter sales rose faster than expected.
Hugo Boss said in a statement it expects currency-adjusted sales to grow by 6-8 percent for the full year, while operating profit should rise by 5-7 percent. It previously forecast a high single-digit percentage rise for both figures.
"Over the last few weeks, our business has been increasingly feeling the effects of the weak performance of the sector in Europe and uncertainties in Asia," Chief Executive Claus-Dietrich Lahrs said in the statement.
Third-quarter net profit rose 2 percent to 114.7 million euros (89.78 million pounds) while sales grew 9 percent to 717 million, compared with average analyst forecasts of 123 million euros and 710 million euros, respectively.
Hugo Boss reported a currency-adjusted 8 percent increase in sales in Europe in the quarter, but said momentum weakened across all regions towards the end of the three-month period, particularly in its own stores.
Hugo Boss has been investing heavily in opening more own-run stores, planning to add around 50 new stores this year to the 1,000 it already has. It said on a same-store, currency-adjusted basis, retail sales rose 4 percent.
(Reporting by Emma Thomasson; Editing by Kirsti Knolle and Maria Sheahan)
