Overall Sales Of Hugo Boss Fell 3.7% In The First Quarter.

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Hugo Boss's price cut in China failed to save its declining sales performance.

Recently, the first quarter 2016 earnings report showed that Hugo Boss net profit plunged 49% to 38 million 500 thousand euros.

Experts believe that in the eyes of domestic consumers, Hugo Boss has lagging behind the ranks of luxury brands, without changing products.

It's hard for brands to recover.

The results showed that the overall sales of Hugo Boss in the first quarter was 642 million 600 thousand euros, down 3.7% from the same period last year, lower than the 649 million euros expected by the market, and the fixed exchange rate decreased by 3%.

Net profit plummeted to 38 million 500 thousand euros from 75 million 600 thousand euros in the same period last year, the lowest in nearly six years.

Greater China and the United States led double-digit declines.

Although Hugo Boss lowered its sales of new spring products to 20% in mainland China to boost sales, mainland sales increased by 10%, but it still failed to rescue the Hong Kong and Macao regions which were in deep mire. The overall sales in the Greater China region dropped by 11%.

Regional sales in the United States dropped by 16%, while sales in Canada and South America increased only worldwide.

The company believes sales growth will slow this year and operating profits will continue to fall.

This year, the brand will continue to lower the prices of other commodities in order to boost the domestic market and reduce the price differentials in China and Europe.

At the same time, continue to close stores to cut costs.

Zhou Ting, President of the luxury goods field and President of the Institute of wealth quality, said that Hugo Boss has apparently failed to grasp the core of its effective marketing.

"At present, the main problem of brands is that consumers no longer regard them as luxury brands, and their product design is aging and innovation ability is not enough.

The brand's global price system is increasingly pparent, and prices in the mainland of China are still high, which makes it difficult to attract consumers.

Beijing Business Daily reporter noted that Hugo Boss domestic price of 20%, still about 40% more expensive than Europe.