Hugo Boss shares slide on lower sales and profits forecast

German fashion house Hugo Boss trimmed its 2014 sales and profit forecasts yesterday due to a slowing European economy after it reported weaker-than-expected third-quarter profits.

Hugo Boss said it now expected sales to grow 6-8 per cent in 2014, after accounting for currency changes, while operating profit should rise 5-7 per cent.

“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.

Hugo Boss makes two-thirds of its sales in Europe, Middle East and Africa, so it is more exposed to a downturn in the region.

Its third-quarter net profit rose 2 per cent to €114.7 million, well below average forecasts of €123 million. – (Reuters)