|Bid||49.98 x 144300|
|Ask||50.02 x 48600|
|Day's Range||49.44 - 50.06|
|52 Week Range||48.89 - 70.80|
|Beta (3Y Monthly)||0.63|
|PE Ratio (TTM)||15.89|
|Forward Dividend & Yield||2.70 (5.48%)|
|1y Target Est||75.83|
(Bloomberg Opinion) -- As if the luxury goods industry didn’t have enough to worry about with the troubling developments in its key Asia markets, Hugo Boss AG has raised the specter of things going wrong in America too.The maker of smart suits said on Thursday that its sales (when excluding currency movements) and earnings growth would be at the lower end of its anticipated range this year. It blamed weakness in the U.S., which accounted for 14% of revenue in the first half. The company now expects group sales to rise by 4%-5% in 2019 and a 7%-8% increase in earnings before interest and tax.Hugo Boss said a plethora of factors were behind the 5% fall in underlying U.S. sales in the second quarter. While some might read these as excuses for poor performance, they do ring true. That should worry the rest of the garment-makers.The U.S. retail market has had a difficult time this year after poor weather in the first three months. That left shops, particularly department stores, carrying too much stock, which has led to heavy discounting. Meanwhile, fewer Asian tourists have visited Hugo Boss’s American stores because of the weakness of the yuan and the trade tensions between Washington and Beijing.The German company is not alone in its U.S. travails. Kering SA’s Gucci also suffered a slowdown in sales there. Some of that may be down to the brand losing momentum generally, but it it might also reflect weaker tourist demand.Comparisons with last year are also tough, because high-end shoppers were flush with cash back then from President Donald Trump’s tax cuts. Bain & Co, a consulting firm, noted this trend in its most recent report on the luxury industry.But Hugo Boss appears more exposed to these U.S. setbacks than some of the mega-brands such as France’s LVMH Moet Hennessy Louis Vuitton SE, which reported knockout sales last week. Hugo Boss is a staple of American department stores and this sector has been suffering.The company’s focus on clothing, rather than faster growing luxury sectors such as handbags, is another drawback, as is its positioning as simply a premium brand rather than the ultra-expensive ranges owned by LVMH, Kering and Switzerland’s Compagnie Financiere Richemont SA. The super-wealthy tend to be more resilient spenders than the merely comfortably off, who have greater cause to fear the economic effects of everything from Trump’s trade war to Brexit.Even so, the bigger groups can’t afford to be complacent about any cracks in the U.S. market. With American shoppers accounting for 22% of total personal luxury goods sales in 2017, according to Bain, this is a crucial territory. And it needs to be set alongside the difficulties in Asia, with the protests in Hong Kong denting sales – especially of watches.As for Hugo Boss, the stumble will make it even harder for it to reach its 2022 target of 5%-7% sales growth and a 15% operating margin. While chief executive Mark Langer is pursuing a sensible strategy, including rationalizing the company’s brands, improving its casual wear offering, and bolstering its web business, these targets always looked ambitious.While the chief risk remains a slowdown in Asian demand, a weaker U.S. doesn’t suit Hugo Boss at all.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Hugo Boss expects full-year sales and earnings to come in at the lower end of its forecasts due to challenges in the U.S. market, despite strong sales growth in China, the German fashion house said on Thursday. Known for its smart men's suits, Hugo Boss has introduced more casual and sportswear styles to appeal to a younger audience, recently teaming up with former One Direction singer Liam Payne and Taiwanese-Canadian actor Mark Chao.
Despite Jean-Éric Vergne back to back world championship, the 2018-2019 Formula E season was especially exciting, resulting in a season that had 8 different winners over the span of 13 races. And while exciting is good for motorsports, that’s not the only reason why big manufacturers and brands spend small fortunes to compete in, and sponsor, motorsports.
Hugo Boss said the renovation of several major stores should revive sales growth after the German fashion house reported a drop in first-quarter earnings due to reorganisation costs, higher marketing spending and a strong U.S. dollar. Finance chief Yves Mueller said stores had already been reopened in New York and Tokyo, while the refurbishment of the company's biggest flagship store on the Champs Elysees in Paris, and a store in Chicago will be complete after the summer. "Store optimisations will drive performance," Mueller told a conference call for analysts.
German fashion house Hugo Boss said it expected its operating profit to rise faster than sales in 2019, predicting strong momentum in its online business and Asia. Known for its smart men's suits, Hugo Boss has introduced more casual and sportswear styles to appeal to a younger audience and invested heavily in its online offer after a bid to go upmarket backfired a few years ago. "We are ensuring profitable growth in 2019 and beyond.
Shares in German fashion house Hugo Boss (BOSSn.DE) jumped on Tuesday after it reported sales growth picked up at the end of 2018 across its stores, online and at its wholesale business, which benefited from a shift in deliveries to the quarter. Known for its smart men's suits, Hugo Boss has introduced more casual and sportswear styles to appeal to a younger audience and invested heavily in its online offer after a bid to go upmarket backfired a few years ago. Hugo Boss said on Tuesday sales rose a currency-adjusted 6 percent in the fourth quarter to 783 million euros ($889 million) in the fourth-quarter, beating average analyst forecasts for 762 million euros, according to Refinitiv data.
The German outfitter to affluent professionals has set out its stall for the next four years. The company said Thursday it aims to lift sales growth excluding currency movements from 4 percent this year to an annual 5-7 percent by 2022, and forecasts the operating margin will increase to 15 percent from the 12 percent estimated by analysts for 2018. The current consensus indicates a compound annual growth rate of 4.6 percent over 2019-2020, according to Luca Solca, analyst at Exane BNP Paribas.
German fashion house Hugo Boss (BOSSn.DE) set new targets to accelerate sales growth and lift profitability on Thursday as it seeks to react faster to trends, expand in Asia and quadruple the size of its own online business by 2022. After Mark Langer took over as chief executive in 2016, the company known for its smart men's suits abandoned his predecessor's bid to go more upmarket and instead trimmed prices, launching more casual styles and investing heavily in its online offer. Ahead of an investor day, Langer said he sees big growth potential for its trendier Hugo brand, which now accounts for 15 percent of sales, and for the group's business in Asia, where 20 percent of sales should come from in 2022, up from 15 percent now.