Hugo Boss has cut its 2015 sales and profit outlook, as China‘s economic slowdown and caution from tourist shoppers in the USA hit Q3 results.
The German fashion house, traditionally known for its tailoring but which has been focusing recently on womenswear and accessories, said that although European business was performing in line with expectations sales had slowed in China and weaker demand from tourist spending had hurt sales in the States.
In an unexpected trading update, the company said: “The sales development of Hugo Boss was marked by high levels of volatility in the third quarter of 2015 (July to September).
Total third quarter group sales declined by 1%, excluding currency effects on a preliminary basis.”
The luxury label added that trading profit was expected to have fallen by 8% – partly as a consequence of adverse currency exchange rate movements.
Hugo Boss‘ results come a day after London-listed rival Burberry predicted a second year of declining profit because of stagnancy in Asia.