Saturday, September 26, 2020

Hugo Boss struggles amid “challenging” fashion market


Hugo Boss has failed to cap its declining sales in the wake of a “continuously challenging market environment”.

The European market has proven tough for the menswear retailer as it reported a total revenue drop of three per cent in its third quarter.

With negative currency effects taken into account, the group‘s sales fell by six per cent to £635 million.

Despite this, the weak pound did contribute to a five per cent rise in sales across the UK, attributing the rise of international tourist‘s bulk buying luxury items to the significant growth.

This reflects a growing boom in trade for luxury brands like Hugo Boss and Burberry in the UK, as Chinese tourist spend on their good skyrockets.

READ MORE: Westfield prepares for massive international spend during Chinese Golden Week

Westfield reported recently that the average annual household spend of Chinese tourists hit nearly £50,000 this year, and bulk purchases on luxury items has doubled.

Luxury brands have been hit but a collapse in the Hong Kong luxury market recently, adding to the “challenging” worldwide fashion market.

“We are on an upward trend in China now,” chief executive Mark Langer said.

“I’m satisfied at how quickly and comprehensively we adjusted our cost structures to the changing business conditions.

“All the measures we have taken to protect profitability in the current year are on plan or even ahead.”

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