, FRANKFURT, May 7 – German fashion house Hugo Boss said on Wednesday it “started the year on a positive note” and is standing by its targets for higher sales and earnings in the whole year.
“In a challenging market environment Hugo Boss started the year on a positive note,” the group said in a statement.
“We therefore confirm our positive outlook for the year as a whole.”
In the period from January to March, net profit slipped by 1.0 percent to 80.7 million euros ($112 million).
Underlying or operating profit fell by 2.0 percent to 108.7 million euros, while sales grew by 3.0 percent to 612.6 million euros.
“We had a good start to the year,” said chief executive Claus-Dietrich Lahrs.
“Thanks to a strong development in Europe, we were able to compensate for the challenging market environment, above all in North America and China.”
Investments in brand, distribution and logistics “negatively affected our earnings development in the period, but will support sales and profit growth for the rest of the year and beyond,” Lahrs said.
Hugo Boss said it confirmed its outlook for the year.
“The company plans to achieve high single-digit sales growth after adjustment for currency effects and thus to post stronger growth than in the previous year,” it said.
And underlying profit “is also expected to post a high single-digit increase,” it added.