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Sales slump at Hugo Boss despite boost from weaker sterling

Published 02/11/2016

A Brexit boost from the weak pound was not enough to help arrest a sales slump at Hugo Boss in the third quarter
A Brexit boost from the weak pound was not enough to help arrest a sales slump at Hugo Boss in the third quarter

A Brexit boost from the weak pound was not enough to help arrest a sales slump at Hugo Boss in the third quarter.

The luxury retailer said total revenue fell 3% in the period, flagging a "continuously challenging market environment" - particularly in Europe.

Taking into account negative currency effects, the group recorded a 6% fall in reported sales to 703 million euro (£635m).

But in the UK, sales were up 5% as tourists continue to take advantage of the collapse in sterling to buy designer goods - with Hugo Boss describing business as "especially strong" in Britain.

Luxury fashion retailers have been aided by sterling's near 20% demise against the US dollar since Britain's decision to quit the European Union.

Last month, Burberry saw UK sales rocket after the plunging pound saw overseas shoppers rush to London to snap up luxury goods at a better price.

Shoppers from China and the United States in particular have been travelling to the UK to hit the shops.

In Asia, designer brands have been hit by a collapse in the Hong Kong luxury market and slowing demand in the US. But Hugo Boss said that sales in China have "significantly improved".

Chief executive Mark Langer said: "We are on an upward trend in China now.

"I'm satisfied at how quickly and comprehensively we adjusted our cost structures to the changing business conditions. All the measures we have taken to protect profitability in the current year are on plan or even ahead."

Press Association

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