Hugo Boss計劃限制在美國的經銷批發，以及僅在店中店提供Boss的核心品牌商品，以盡可能不以大折扣的方式促銷。Hugo Boss已與Macy’s百貨公司達成協議，讓Hugo Boss管理百貨內所有的8間店中店。
Hugo Boss財務長Mark Langer堅稱Hugo Boss仍是個“健全及成長型的企業”，不過公司也注意到“日益嚴峻市場環境”。
Hugo Boss to close 20 stores in China amid weak demand
Well at least it hasn’t taken the scissors to its dividend but Hugo Boss, the troubled German retailer which recently parted ways with its chief executive, is likely to disappoint shareholders by failing to lift its full year payout. It has, however, promised to take action to revive flagging sales in the US and China, including closing around 20 of its Chinese stores.
The group has proposed a dividend of €3.62 a share, stable with the previous year, despite sales rising 9 per cent last year – or by 3 per cent excluding currency movements – to €2.8bn. According to a Bloomberg poll, analysts had been expecting an improvement in the dividend to €3.65 a share in an effort to appease shareholders, who have seen the company snip away at its forecasts several times in the last six months as demand for luxury fashion in key markets such as China has ebbed away.
Hugo Boss said last month that its chief executive of eight years, Claus-Dietrich Lahrs, would leave “as part of a mutual agreement”, just days after it warned that continued weak demand in China and the US would depress its profits in 2016. The company said it expects adjusted operating profit to decline at a “low double-digit percentage rate” this year. Hugo Boss had also cut its sales and profit forecasts in October last year.
In 2015, Hugo Boss’s sales rose to record levels but earnings fell short of expectations due to the challenging trading conditions in China and the US. Its gross profit margin for 2015 fell 10 basis points to 66 per cent and net income fell 4 per cent year-on-year to €319m, also due to higher finance expenses.
The group insisted on Thursday that it is taking action to revive sales in the US and China, including closing around 20 stores in China, plus making improvements to distribution and “brand perception”.
Mark Langer, Hugo Boss’s finance director said on Thursday:
To safeguard our profitable long-term growth, we have to align our strategy even more rigorously with customer needs. Management has therefore initiated measures to successfully address the external and company-specific challenges. Our brand’s attractiveness, the quality of our operating platform, our financial strength and our highly motivated workforce give us strong foundations for the future.
Hugo Boss is one of several luxury clothing retailers that has been caught out as the tide has turned in China, where shoppers who were once happy to splash their spare cash on status brands have turned more cautious following last year’s devaluation of the renminbi and amid concerns an expected slowdown in economic growth may be steeper than originally expected.
In the US, the company has reported weaker sales to tourists and constrained levels of consumer spending, which has forced it to offer more promotions.
Original Article: fastFT