Hugo Boss Net Profit Plunged 84% In The Two Quarter

Decline in performance, continuous shop, price reduction......

These are almost become

The epitome of the past six months.

The two quarter earnings report released by Hugo Boss showed that the company's net profit plunged by 84% in the two quarter of this year.

This allowed Hugo Boss to shut down its bad stores around the world in order to save the decline of its performance.

For the two quarter net profit fell sharply, Hugo Boss analysis that the main closure of bad shops brought about by the loss of 57 million euros net profit.

However, the industry believes that

Aging and poor innovation are all the direct reasons for Hugo Boss's encounter with Waterloo.

Reporters learned that, compared to the first quarter, Hugo Boss two quarter net profit fell more serious.

The company's net profit in the two quarter has dropped to 11 million euros from 78 million 800 thousand euros last year.

At the same time, Hugo Boss's operating profit fell 4% to 622 million euros, but after adjusting for money, its operating profit dropped slightly by 1%.

The decline has again hit the most recent six years.

Hugo Boss CEO Mark Langer said that the goal of the Hugo Boss plan to return to earnings growth expectations is very difficult. The challenges lie in closing stores and changing the structure of wholesale channels in the US.

Hugo Boss's overall sales in Asia dropped by 6%, while in the Greater China region where the price of products was re established, it was mainly dragged down by Hongkong and Macao, resulting in a 16% drop in sales in this part of the market.

As early as February this year, Hugo Boss said it had abandoned the goal of raising its operating profit to 25% in 2020, which was mainly driven by insufficient sales power.

An emergency plan for Hugo Boss shows that the company is going to continue to shut down the underperforming stores in China. In fact, in 2015, Hugo Boss closed 11 stores in China.

Hugo Boss also announced in March that it would close 20 Chinese stores and reconsider the global store network.

At present, Hugo Boss has about more than 100 stores in China.

Zhou Ting, Dean of the Research Institute, said 95%

This year will be a strategic choice. This is the trend this year.

Hugo Boss is faced with the problem of too many stores and too much operation pressure, which makes the brand value decline rapidly. The lack of product innovation and product aging also make consumers unable to enjoy it.

In addition, management instability also has a certain impact on Hugo Boss.

In the future, if we do not upgrade comprehensively in the fields of design, products and services, Hugo Boss will eventually be abandoned by the original consumer groups.