Hugo Boss Early Warning Of 2016 Results While Walking Around

In the today's investor day report, the German Hugo Boss AG (BOSSn.DE) Hugo Bos group pointed out that the group's continued challenges in the two big markets of China and the United States will lead to a long-term target of 2016 digit fiscal revenue growth which can not reach the high single digit.

Nomura Holdings Inc. Nomura took the lead in lowering the Hugo Boss AG (BOSSn.DE) stock rating to "reduction", and the target price also dropped from 120 euros to 95 euros. The stock fell by 5.96% to 80.35 euros in the last two and a half years on Tuesday.

Hugo Boss AG, Hugo Bos group, pointed out that investments in key strategic pillars such as the whole channel, the retail network and the consumer centric business model will support the medium term growth. The investment will focus on the e-commerce business that helps increase the profit margin. The group also plans to put the e-commerce logistics business in the middle of 2016. However, whether or not we can achieve the core profit of EBITDA profit margin of 25% in 2020 will depend more on the overall market recovery, and the proportion of retail business at 64% is still far from the target of 75%.

Over the past 5 years, the Hugo Boss AG Hugo Bos group, which is expanding globally at the rate of 100 new stores per year, will only add 10-15 stores a year in the future, and will only focus on the layout of the golden section of large international cities. The planned locations include London Regent Street, Regent Street, World Trade Center World Trade Center in New York and Galleria Vittorio Emanuele in Milan. At present, the group has 425 independent stores, 550 shops and 130 discount stores in the global market.

At the end of the three quarter of September, the Hugo Boss AG Hugo Bos group had a 1% decline in net sales and a 7% increase in the two quarter, with sales of real exchange rates rising 3.8% to 744 million euros. The group pointed out that although the European market maintained a strong year-on-year rise of 4% in line with expectations, Asia and the United States were dragged down by the downturn in China's sales and the decline in retail and wholesale business in the United States at the end of the three quarter, with a sharp decline in the US and a decline of 10% in the US and a double-digit decline in China.

In 2016, the group will continue to open flagship stores and upgrade the previous franchising network in the Chinese market, presenting the biggest opportunities and difficulties and challenges, and further narrowing China and others. Asian market The difference between prices and the improvement of cost-effectiveness.

In response to the plight of the US market, the group will actively reduce the discount business, further restrict the participation in wholesale discount channels, and increase the clearance of remaining stocks through self discount stores, while the core brand Hugo Boss will be focused on protecting its high-end brand image.

The three quarter retail Same store sales growth stagnated, far less than the 6% increase in the two quarter. Hugo Boss AG, chief financial officer of Hugo Bos group Mark Alexander Langer, said today that the fourth quarter retail sales will be flat in the same period last year, according to the October sale, and the Group expects sales and profits to improve in the four quarter.

Mark Alexander Langer is also difficult to predict. Terrorist attack in Paris And Brussels's negative impact on the city. The group's annual sales and adjusted EBITDA growth rate for fixed exchange rate is expected to be 3%-5%, after the full year sales growth is expected to be in the median, adjusted EBITDA growth is expected to be 5%-7%.

Nomura Holdings Inc. Nomura said in a research report released today that the current macroeconomic trend is unclear and the market is in urgent need of China's recovery. However, today's Global Blue global data show that the number of Chinese outbound players has slowed sharply in the second half of the year (65.8% in August, 49.2% in September and 23.5% in October). Nomura believes that the market's performance in the 2016 financial year of the luxury industry is expected to be high and there is a risk of overall downvaluation in the industry. Swatch Group SA (UHR.VX) Swatch group, Burberry Group PLC (BRBY.L) Boboli and Tod s SpA (s) were reduced to "neutral", "neutral" and "reduced" respectively.