• Home
  • News
  • Business
  • Hugo Boss foresees a 50 percent decline in sales

Hugo Boss foresees a 50 percent decline in sales

By Kristopher Fraser

loading...

Scroll down to read more

Business

Coronavirus continues to do its damage to the sales of global fashion brands, including Hugo Boss. The company has said they are already expecting a 50 percent decrease in sales. Hugo Boss has reopened stores in China and across parts of Europe, but many of their other key markets, including many parts of the United States, are still on lockdown.

While sales are already rebounding in markets that are open, the economic fallout from key markets in Europe and North America is going to put a major dent in Hugo Boss' bottom line. 75 percent of Hugo Boss' stores are still closed, and shoppers are still cautious about congregating in stores that are open.

Hugo Boss is currently looking at cost saving measures to help them offset the blow to their sales figures. The company did have a mostly solid first quarter, all things considered. Sales were 605 million dollars ahead of forecasts, although they did post a loss of 14 million dollars after interest and taxes. To help curb costs, Boss is suspending store renovations and postponing the opening of new stores, in addition to limiting the inflow of stock.

In September, Hugo Boss' current CEO, Mark Langer, is due to exit the company in September. He will stay on as a consultant for the company until Boss picks his successor.

photo: courtesy of Hugo Boss

Boss