Hugo Boss swings to loss, sees sales halved
Hugo Boss AG said Tuesday that it swung to a first-quarter loss as the coronavirus pandemic hit its business, and warned that it is anticipating a sharper decline in sales and earnings in the following quarter.
Boss reported an 18-million euro ($19.7 million) net loss for the quarter compared with a net profit of EUR37 million the previous year.
The company posted a EUR14 million operating loss.
The German premium-apparel company’s sales for the quarter fell 16% to EUR555 million, beating analysts’ forecasts of EUR540.9 million, according to a FactSet consensus estimate. At constant currencies, sales declined 17%, Boss said.
But the second quarter should be even tougher on Boss’s financials, the company said, warning that it expects its second-quarter sales to at least halve at adjusted currencies.
The company, which earlier this year withdrew its 2020 guidance just two weeks after issuing it because of the coronavirus pandemic, warned Tuesday that it can’t reliably guide on the full year due to the uncertainty.
Cristina Roca
Source:marketwatch.com