Hugo Boss Pares Outlook to Lower End of Range on U.S. Challenges
(Bloomberg) -- Hugo Boss AG said full-year sales and profit will be at the lower end of its guidance range as it struggles to sell its clothes in the U.S.
Revenue in the second quarter, adjusted for currency swings, declined by 5% in the U.S., Boss said Thursday. The suitmaker cited weak sales to tourists and a high level of discounting by apparel retailers, among other factors.
The shares fell as much as 3.8% in early Frankfurt trading, their biggest intraday decline in two months.
The U.S. decline pared companywide revenue growth to 2% in the quarter and prompted Boss to say sales and earnings will only reach the lower end of its guided range for the full year.
The company had already reported a plunge in first-quarter earnings amid the weakness in the U.S., in a setback for Chief Executive Officer Mark Langer’s turnaround plans.
Sales in Europe and the Asia-Pacific region rose in the second quarter, Boss said, and operating profit should “significantly accelerate” in the second half after rising 3% in the latest three months.
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