German luxury fashion brand Hugo Boss announced on Tuesday that its sales and operating profit for the current fiscal year are expected to come in at the lower end of its annual guidance, aligning with analysts’ projections.
The company’s latest financial update revealed that third-quarter sales declined by 1% in currency-adjusted terms, falling to 989 million euros from 1.03 billion euros during the same period last year.
The drop comes amid a challenging global retail environment, marked by shifting consumer spending patterns, inflationary pressures, and uneven demand across key markets such as Europe, the United States, and Asia.
Hugo Boss has been actively investing in digital innovation and expanding its casualwear collections under the BOSS and HUGO brands to attract younger consumers. Despite these efforts, the company continues to face headwinds from weaker discretionary spending and heightened competition in the premium apparel segment.
The brand reaffirmed its commitment to long-term growth, emphasizing ongoing initiatives in brand modernization, e-commerce development, and sustainability efforts. However, management cautioned that macroeconomic uncertainty and slower-than-expected sales recovery may constrain profit margins in the short term.
As the fashion industry navigates fluctuating consumer confidence and rising operational costs, Hugo Boss’s guidance reflects a cautious outlook for the remainder of the year.
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