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Hugo Boss Q2 sales rise 14% but concern for Asia abounds Tuesday, 31st July 2012
Opening of Hugo Boss' Taipei Store. Photo Credit: Hugo Boss
German fashion house Hugo Boss on Tuesday reported back on second quarter sales of EUR 485 million, a rise of 14 per cent on a currency-neutral basis.
But despite strong growth in Europe, where sales rose 17 per cent, and 11 per cent in the Americas, Asian sales rose just 4 per cent compared with a 9 per cent rise in the previous quarter.
The luxury retailer is now warning that its full-year profit would fall short of analyst expectations as the Chinese market begins to slow.
"We are still growing in Asia. But at the moment we too are feeling the slowing in consumer demand that can be seen across the sector," chief executive Claus-Dietrich Lahrs told investors according to a report by Reuters.
Despite second quarter sales of EUR 485 million coming in well above analyst forecasts of EUR 462 million, shares in Hugo Boss fell 5 per cent on Tuesday morning.
The company said it now expected 2012 core profit to rise by 10-12 per cent, disappointing some analysts who had expected a rise as high as 15 per cent.