BERLIN (Reuters) – Hugo Boss <BOSSn.DE> expects full-year sales and earnings to come in at the lower end of its forecasts due to challenges in the U.S. market, despite strong sales growth in China, the German fashion house said on Thursday.
Second-quarter operating profit rose 3% to 76 million euros (£69.29 million) on sales up a currency-adjusted 2% to 675 million euros – shy of average analyst forecasts for 79 million and 677 million.
Sales fell 3% in the Americas, which Hugo Boss blamed on the easing of the positive effects of tax reform, weaker business with tourists and a highly promotional market.
Hugo Boss said it now expects 2019 currency-adjusted sales growth to be at the lower end of an outlook for a mid single-digit percentage rise, and operating profit to be at the lower end of its forecast for a high single-digit percentage increase.
(Reporting by Emma Thomasson; Editing by Michelle Martin)