Hugo Boss reaffirms 2023 outlook amid luxury downturn, shares rise

4 weeks ago 32

[1/2]An employee displays clothes in the Hugo Boss section in the Central Universal Department Store (TsUM) in Kiev, Ukraine, May 17, 2017. Picture taken May 17, 2017. REUTERS/Valentyn Ogirenko/File Photo Acquire Licensing Rights

  • Q3 sales up 15% at 1.03 bln euros
  • Confirms annual guidance
  • CEO flags strong start to Q4
  • Shares rise 4.8%

Nov 2 (Reuters) - Hugo Boss (BOSSn.DE) on Thursday reaffirmed its full-year outlook after posting quarterly results in line with analysts' expectations, supported by strong demand for its products despite a broader downturn in the luxury sector.

The German fashion house reported a 15% rise in third-quarter sales to 1.03 billion euros ($1.09 billion), spurred by the launch of its fall/winter 2023 collections in August. Analysts had forecast sales of 1.02 billion euros in a poll provided by the company

"Hugo Boss remains one of the few fashion brands still growing in double-digits," Citi analysts said in a note to investors, citing successful product design and diversification and effective marketing among other factors.

Shares were up 4.8% at 0920 GMT. As of Wednesday's close, the stock was 27% off their highest price so far this year, which was reached in July.

The luxury sector, hit by slowing demand for fashion and accessories particularly in the U.S. and Europe, has been further hampered by a slow start to the European fall/winter season amid unusually warm weather.

Hugo Boss, however, had started the fourth quarter strong, CEO Daniel Grieder told reporters in a call.

The company reiterated its annual guidance for sales of 4.10-4.20 billion euros and an operating profit of 400-420 million euros, corresponding to 20%-25% growth.

Its quarterly earnings before interest and taxes (EBIT) rose 12% to 103 million euros, matching analysts' estimate of 102 million euros.

($1 = 0.9438 euros)

Reporting by Linda Pasquini in Gdansk, Helen Reid in London; editing by Milla Nissi and Miral Fahmy

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