Hugo Boss lowers forecasts

German fashion house Hugo Boss has lowered its sales and operating profit forecasts for fiscal 2014 as a result of a \'substantial slowdown\' in demand in Europe and Asia.

Sales are expected to increase between 6 and 8 percent, while operating profit should rise between 5 and 7 percent. Both forecasts are lower than the high single-digit growth initially projected.

In a press release, CEO Claus-Dietrich Lahrs indicated that the slowdown is sudden, occurring only in the last few weeks, with third quarter growth before that being heralded as 'solid'. "Over the last few weeks, our business has been increasingly feeling the effects of weak performance of the sector in Europe and uncertainties in Asia," Lahrs said. He did, however, remain buoyant about prospects for the year, saying he expected the company to 'outpace the luxury goods sector as a whole'.

Hugo Boss said adjusted earnings in the third quarter rose 5 percent to 182 million euros (142.3 million pounds), with sales up 9 percent to 717 million euros, somewhat in line with analysts' expectations. Net profit climbed 2 percent to 15 million euros.