Hugo Boss has today reaffirmed its full-year outlook after posting quarterly results in line with analysts' expectations, supported by strong demand for its products despite a broader downturn in the luxury sector.
The German fashion house reported a 15% rise in third-quarter sales to €1.03 billion, spurred by the launch of its autumn/winter 2023 collections in August. Analysts had forecast sales of €1.02 billion in a poll provided by the company
"Hugo Boss remains one of the few fashion brands still growing in double-digits," Citi analysts said in a note to investors, citing successful product design and diversification and effective marketing among other factors.
Shares were up 4.8% this morning. As of yesterday's close, the stock was 27% off their highest price so far this year, which was reached in July.
The luxury sector, hit by slowing demand for fashion and accessories particularly in the US and Europe, has been further hampered by a slow start to the European autumn/winter season amid unusually warm weather.
Hugo Boss, however, had started the fourth quarter strong, CEO Daniel Grieder told reporters in a call.
The company reiterated its annual guidance for sales of €4.1-4.2 billion and an operating profit of €400-420m, corresponding to 20%-25% growth.
It said its quarterly earnings before interest and taxes (EBIT) rose 12% to €103m, matching analysts' estimate of €102m.
