Hugo Boss Profits Decline 31% in Q1

PARIS — Hugo Boss AG’s net profit for first-quarter 2019 declined 31 percent, due to an increase in operating expenses and a challenging U.S. market, but confirmed its guidance for the full year. The German apparel group’s net profit in the three-month period ended March 31 came to 31 million euros. The Metzingen-based company reported Thursday that its operating profits were down in the quarter by 23 percent to 54 million euros, impacted by investments in digital and higher expenses linked to reorganization measures. Marketing expenses also increased in the period. “This development is expected to be offset in the course of the remainder of the year,” the company said in a statement, adding the U.S. dollar’s appreciation against the euro dampened earnings, too. In the period, Hugo Boss’ sales grew 2 percent to 664 million euros. On a currency-adjusted basis, group sales were up 1 percent. By geographic zone, Hugo Boss’ sales in the Asia-Pacific region climbed 7 percent to 107 million euros. In Mainland China, the company posted double-digit gains in comp-store terms. In Europe, group sales advanced 2 percent to 424 million euros, while in the U.K. double-digit retail sales growth was reported on a currency-adjusted basis, whereas sales remained stable in Germany. Hugo

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