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BREAKING NEWS

Hugo Boss earnings disappoint, U.S. market challenging

Hugo Boss earnings disappoint, U.S. market challenging
FILE PHOTO: A woman walks past Hugo Boss store logo on a shopping center at the outlet village Belaya Dacha outside Moscow, Russia, April 23, 2016. REUTERS/Grigory Dukor -
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Grigory Dukor(Reuters)
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BERLIN (Reuters) - German fashion house Hugo Boss reported a fall in first-quarter earnings on Thursday due to reorganisation costs, higher marketing expenses and a strong U.S. dollar, while sales fell in a challenging U.S. market.

Hugo Boss said sales rose a currency-adjusted 1 percent to 664 million euros (£570.1 million) and operating profit fell 22 percent to 55 million, missing average analyst forecasts for 669 million euros and 65 million euros respectively.

However, the company known for its smart men's suits said it expected a "substantial acceleration" in earnings for the rest of the year, allowing it to confirm its outlook for a high single-digit percentage increase in operating profit and a mid single-digit percentage rise in currency-adjusted sales.

Shares in premarket trade were indicated to open 3.6 pct lower at 0551 GMT.

(Reporting by Emma Thomasson; Editing by Tassilo Hummel)

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