Hugo Boss posts Q3 FY20 sales of €533 mn

Hugo Boss, a German luxury fashion house, has reported 24 per cent sales decline to €533 million in its third quarter (Q3) for fiscal 2020, that ended on September 30, compared to the sales of €720 million in the same period last fiscal. During the quarter, group’s net income was €3 million compared to net income of €56 million in Q3 FY19.

 

“We made further progress in the recovery of our business, with great contribution coming from online and mainland China. Our profitability returned to positive territory, and we even accelerated our strong cash flow generation,” Yves Müller, spokesperson of the managing board of Hugo Boss, said in a press release.

 

Gross profit for the quarter €330 million (€456 million). Operating expenses incurred a loss €315 million (€373 million). Operating result during Q3 FY20 was €15 million (€83 million). 

 

Sales in Europe were down by 22 per cent €369 million (€471 million). While lower tourism flows continued to weigh on the overall business recovery, the region benefitted from a solid rebound in local demand. The latter was particularly evident in the UK and France.

 

Sales in Americas fell 41 per cent to €73 million (€135 million). While revenues in Latin America recovered noticeably, sales across the US and Canada were down by mid-double-digit percentage rates.

 

For Asia/ Pacific region, sales dropped 14 per cent to €76 million (€91 million). 

 

For Boss segment, sales during Q3 FY20 fell 24 per cent to €456 million (€614 million). While for the Hugo segment, sales decreased 25 per cent to €77 million (€105 million).

 

“Further driving the global recovery of our business will remain a key priority for us as we approach year-end. At the same time, we will continue to push ahead with the execution of our strategic initiatives to return to our former growth trajectory,” Müller said.