FILE PHOTO: Jackets are on display in the Hugo Boss section in the Central Universal Department Store (TsUM) in Kiev, Ukraine, May 17, 2017. REUTERS/Valentyn Ogirenko
BERLIN (Reuters) – German fashion house Hugo Boss (BOSSn.DE) reported better than expected fourth-quarter sales growth on Tuesday , helped by strong demand at its renovated stores and growth in online retail.
Fourth-quarter sales rose 4% to 825 million euros ($915.34 million), adjusted for currency changes, beating average analysts’ forecast of 805 million euros.
Shares in Hugo Boss, which have fallen by more than a quarter in the last year, were up 2.4% in premarket trade.
Operating profit rose 9% to 122 million euros in the quarter, in line with expectations and compensating for a profit decline in the first nine months of the year.
In October, Hugo Boss cut its 2019 earnings forecast, citing weak demand in the United States and Hong Kong but it had predicted a recovery in the fourth quarter.
On Tuesday, Hugo Boss said the environment in Hong Kong remained difficult in the fourth quarter, although mainland China saw double-digit growth, while currency-adjusted sales fell 7% in the Americas, compared with an 8% drop in the third.
After Hugo Boss spruced up its stores, including its flagship Champs Elysees spot in Paris, currency-adjusted sales at its retail business rose 7%, while online sales jumped 52%.
Shares in other luxury goods makers rose last week after UBS said it expects 2020 to be another busy year for the sector, supported by buoyant consumer sentiment and speculation over mergers and acquisitions.
Reporting by Riham Alkousaa, editing by Emma Thomasson