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SummaryCompaniesReported Q3 sales fall 4% to 989 million eurosExpects annual sales, operating profit at lower end of guidanceQ3 gross margin beats analysts' expectations at 61.2% Nov 4(Reuters) - German fashion group Hugo Boss (BOSSn.DE), opens new tab on Tuesday reported quarterly sales below expectations, citing softer demand in Britain and China. The company said full-year sales and operating profit would likely come in at the lower end of its guidance, in line with analysts' forecasts, as "heightened macroeconomic volatility" and adverse currency movements continued to weigh on performance. The group's sales fell 4% to 989 million euros ($1.15 billion) in the third quarter, hit by a weaker U.S. dollar. That was below analysts' forecast of 1.01 billion euros in a company-provided poll, opens new tab. Advertisement · Scroll to continueReport Ad Excluding the impact of currency changes, sales fell 1%, dragged by lower revenues in its key markets China and Britain. That weakness outweighed improvements in Germany, France and the U.S., it said. The group also flagged a sales decline in the brick-and-mortar wholesale business, citing the timing of deliveries. Its gross margin, however, rose to 61.2% of sales, compared to 60.2% the year before, and above analysts' expectations of 60.5%, helped by cost cuts and lower global freight rates, the company said. It expects group sales and earnings before interest and taxation (EBIT) this year to come in at the lower end of its target ranges of between 4.2 billion and 4.4 billion euros for sales and between 380 million and 440 million euros for operating profit. Advertisement · Scroll to continue "The guide (was) lowered less than feared," analysts at Jefferies wrote in a note to clients. ($1 = 0.8575 euros) Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2137053060 About ConnatixV2137053060 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Linda Pasquini in Gdansk, editing by Matt Scuffham and Louise Heavens Purchase Licensing Rights Get the key points from this story with Reuters AI Linda PasquiniThomson ReutersGdansk-based reporter covering German, Swiss and Austrian company news and equity markets, with a focus on retail and e-commerce sectors.EmailXLinkedin
