Hugo Boss AG reported sales that beat analysts’ estimates as the German clothing maker’s turnaround bears fruit.
Revenue rose 15 percent at constant exchange rates in the third quarter, the retailer said Thursday. Hugo Boss also confirmed its outlook for full-year sales of €4.1 billion to €4.2 billion ($4.3 billion to $4.5 billion). The stock rose as much as 5.2 percent, on track for the steepest one-day gain in more than a year.
The fashion maker has weathered the drop in European consumer sentiment so far, benefiting from luxury customers trading down to its refined casualwear.
The company revamped its Hugo and Boss brands two years ago under the leadership of former Tommy Hilfiger chief Daniel Grieder, increasing its relevance among young shoppers and gaining market share since.
Womenswear sales rose 24 percent. Hugo Boss needs a bigger presence in that segment, which currently makes up 10 percent of its revenue, said Bloomberg Intelligence analyst Andrea Ferdinando Leggieri.
The stock has lost a fifth of its value in the last three months.
By Maggie Shiltagh
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