German Fashion Brand Hugo Boss2019 Declined Net Profit In The First Quarter Of 31%

German fashion group Hugo BossAG (hereinafter referred to as "Hugo Boss") released the key financial data in the first quarter of fiscal year 2019, due to the additional cost of restructuring, increased marketing costs and stronger US dollar, net profit fell in the first quarter.

According to its earnings report, in the three months ended March 31st, Hugo Boss sales increased by 1% to 664 million euros compared with the same period last year, while net profit dropped 31% to 31 million euros compared with the same period last year.

The group said the decline in performance was mainly due to the simultaneous increase in expenditure on marketing, digitalization and restructuring.

It is worth noting that the income of the Hugo Boss Asia Pacific market continued to grow, rising 7% to 107 million euros compared with the same period last year, mainly due to the promotion of double-digit growth in mainland China's performance.

Hugo Boss CEO Mark Langer said: "the growth of China's market and online business shows that our strategy is playing a role, but the US market is weaker than expected.

Investment in digitalization and organizational restructuring has dragged down the profitability of enterprises in the first quarter, but these measures will help to greatly enhance our cost-effectiveness in the future.