BERLIN (dpa-AFX) - German luxury fashion brand Hugo Boss AG (HUGSF.PK) reported Thursday that its second-quarter net income, including IFRS 16, was 50 million euros, down 7 percent from last year's 54 million euros. Excluding IFRS 16, net income was 53 million euros, down 1 percent from last year.
Operating profit or EBIT, however, grew 3 percent in the second quarter to 76 million euros from 74 million euros a year ago.
Sales were 675 million euros, up 3 percent from 653 million euros last year. Currency-adjusted Group sales grew 2 percent in the second quarter.
Looking ahead, the company confirmed its outlook for the full year 2019, and said it now expects sales and earnings at the lower end of the existing outlook, mainly reflecting the persisting challenges in the US market.
The company expects that currency-adjusted sales growth will reach the lower end of the existing outlook of increase at a mid-single-digit percentage rate.
The acceleration in sales in the second half of the year will be driven by the own retail business, which is forecast to achieve currency-adjusted sales growth in the mid to high single-digit percentage.
For the second half of the year, the Company also anticipates a significant acceleration in operating profit development.
HUGO BOSS expects to achieve EBIT growth at the lower end of the existing outlook of increase at a high single-digit percentage rate for the full year, excluding the expected effects of IFRS 16.
Mark Langer, Chief Executive Officer, said, 'For the second half of the year, we are now expecting a significant acceleration in sales and operating profit development. This will make a decisive contribution to the achievement of our full-year targets. Key drivers will be our partnerships in the online business and the ongoing optimization of our store network.'
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