High-end German fashion house Hugo Boss yesterday scrapped its sales target for 2015 because of slower spending in Europe, the US and China, sending its shares lower.
Like other companies targeting more affluent customers, Hugo Boss has been hit by lower spending abroad by Russian and Chinese shoppers.
Its original revenue target of €3bn (£2.15bn) should be achievable in 2016 rather than this year, chief executive Claus-Dietrich Lahrs said.
Lahrs confirmed the company planned to concentrate more on the luxury business and raise prices significantly, adding that the main Boss brand would in future only be sold in the company’s own stores. “We will again be able to master the macroeconomic challenges this year,” Lahrs added. “Looking ahead over the next few years, Hugo Boss faces excellent prospects for growth.”
The group now expects group sales this year to rise by a figure of around five per cent from €2.57bn in 2014.
While many analysts had expected Hugo Boss to trim its 2015 forecast due to tough market conditions, they had hoped the cut would not be so deep. On average, analysts had been expecting 2015 sales of €2.83bn and €3.03bn for 2016, according to Thomson Reuters data.
Hugo Boss shares in Frankfurt closed down 1.68 per cent to €117.05.