Hugo Boss Cuts FY Outlook

(RTTNews) - German luxury fashion brand Hugo Boss AG (HUGSF.PK), Thursday lowered its sales and earnings forecasts for 2015 impacted by weak third-quarter sales in China and the U.S.

Hugo Boss now expects revenue to rise 3 to 5 percent in 2015 on a currency adjusted basis, compared to prior estimate of mid-single-digit rate. Earnings before interest, tax, depreciation, amortization and special items is now expected to increase 3 to 5 percent, down from earlier forecast of 5 to 7 percent growth.

Based on preliminary figures, Hugo Boss' third-quarter EBITDA before special items declined 8 percent to 168 million euros. Revenue increased 4 percent to 744 million, but declined 1 percent adjusted for currency effects.

"While performance in Europe remained strong and in line with original expectations, momentum in Asia and the Americas deteriorated considerably towards the end of the period," the company said.

Sales from China declined weaker demand from tourists contributed to the slowdown in the US.

The company will report final third quarter results on November 3.

Hugo Boss closed Thursday's trading at 102.20 euros, down 1.64%, on the Frankfurt stock exchange.