Hugo Boss Completes Reverse And Reverses The Three Quarter Decline In China

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AG (BOSSN.DE) Hugo BOS said today that China

The strong rebound in the four quarter helped the group maintain the profit that could reach the upper limit of the expected interval. The stock price of the stimulus group surged 9.7% to 60.33 euros, the largest increase since March 2012.

Hugo Boss AG Hugo Bosse chief executive Mark Langer reported in the earnings report that the group completed a reversal in China in the second half of the year. The fourth quarter sales of the same store in the mainland of China recorded an increase of nearly 20% after the impact of the exchange rate was cut off, pushing the sales of Asian businesses up 5%, reversing the 3% quarter decline in the three quarter.

The group now expects a year-on-year decline in operating profit in 2016, which is closer to the upper limit of the expected interval of 17% instead of a lower limit of 23%.

According to the world clothing and shoe net, the operating profit of the group increased by 0.5% to 594 million euros in 2015 compared with the same period last year, which means that the operating profit in 2016 will be between 4.57-4.93 billion euros.

When the strategic plan was released in November last year, Mark Langer pointed out that 2017 is the year of Hugo Boss AG Hugo Bosse's steady position, and it is expected that profits will resume growth until 2018.

From the second half of 2015, China and the US business of Hugo Boss AG Hugo declined sharply, and sales began to decline and issued a series of earnings expectations.

Hugo Boss AG Hugo Bosse took the right medicine in the Sino US market, narrowing the selling distance with the European and American markets and greatly reducing the sales network in the domestic market, while the United States focused on the rectification of wholesale channels. On the whole strategy, the group said it would gradually withdraw from the luxury market and cut down redundant product cards, and at the same time take multiple measures such as cutting costs, slowing down the expansion and refocusing the high-end men's wear fields.

The former CFOMarkLanger took the place of the former CEO Claus-Dietrich Lahrs and became a new chief executive in May 5.

Finally, in the three quarter, domestic demand for luxury goods was generally enhanced and the reform of HugoBossAG Hugo Bosse encouraged the same store sales in mainland China to grow again.

In the fourth quarter, the European market, which accounted for about 6 of the group's sales, also resumed its rise under the driving force of the United Kingdom and Germany. In the three quarter, Germany's sales fell by 10%, while Germany continued to gain growth. The UK continued to benefit from the depreciation of the pound and the promotion of tourism consumption. Europe's overall sales rose 2% compared to the same period last year.

However, the US problem remains unsolved, and sales in the Americas in the fourth quarter still recorded a 14% decline.

The group did not mention the performance of the Hong Kong and Macao markets, but it was believed that the Hugo Boss Hugo Bosch flagship store had split up and reportedly let it go.

Hugo Boss AG is studying the reorganization of 3 Street shops and relocations of the Middle Street building in the middle street of the central street in Hong Kong, which has been leased for 6 million years in HK $6 million 3 years ago. The largest possibility is to rent out the land warehouse with an estimated monthly rent of HK $900 thousand.

And in the Hugo Boss Hugo Bosch brand central flagship store, the American youth clothing brand Abercrombie&Fitch has withdrawn.

Hugo Boss Hugo boss quit luxury field to cut redundant brand and refocus on high-end men's wear sales

In the fourth quarter, the same store sales declined from 3% in the three quarter to 3% in the fourth quarter, while sales increased 4% after the exchange rate was eliminated.

Wholesale business is still suffering from a 13% drop in US distribution and consolidation, which is worse than the three quarter.

Hugo Boss AG Hugo's fourth quarter sales totaled 725 million euros, 3.3% less than the 750 million a year earlier, and 1% after the exchange rate, narrowing further than 3% in the three quarter.

Mar kLanger said last quarter's performance reflects the group's right track.

The total sales in 2016 declined from 2 billion 809 million euros in 2015 to 2 billion 693 million euros, and the decline was 4.1% and 2%, respectively, according to the actual exchange rate and the effect of excluding exchange rate, which reached group expectations.

Analysts at the Hauck&Aufh * user bank said the report was much better than expected, proving that the group's measures were working.

But Claire Huff, an analyst at RBC Capital Markets plus capital market analyst, pointed out that although the introduction of entry-level products can increase sales, the group still faces a series of structural challenges in terms of brand positioning and price positioning.

At the time of the deadline, Hugo Boss AG (BOSSN.DE) rose 8.95% to 59.91 euros at the end of the session, and the stock fell 17.9% over the past 12 months.

The group will release its full performance in March 9th.

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