financetom
Business
financetom
/
Business
/
Hugo Boss seeks to grow in China despite weak demand, CFO says
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Hugo Boss seeks to grow in China despite weak demand, CFO says
Nov 5, 2024 11:21 PM

(Reuters) - German fashion house Hugo Boss said on Tuesday it sought to expand its limited exposure to China and build brand visibility over the long run, despite a dent to its third-quarter sales from weak demand in the region.

Hugo Boss delayed its 2025 revenue and profit targets earlier in the day, after its third-quarter revenue growth was dampened by sales declines in the Asia-Pacific region on sluggish Chinese consumer demand.

Luxury groups have struggled with tighter consumer spending in recent quarters, especially in China, where a property slump and job insecurity have exacerbated the problem.

Still, the company said it was continuing its efforts to grow in the region, which represents 5% of its overall sales.

This was in contrast with some companies' strategy to cut prices and costs and scale back activity in the world's second-biggest economy which was lagging in recovery efforts.

Chief Financial Officer Yves Mueller said on an investor call the company was focusing on bigger stores to deliver a better customer experience, which was in demand among Chinese shoppers.

The company was expanding its Boss Green line offering which includes technical and outerwear items, Mueller said, as Chinese customers were "very sports oriented."

It was also investing in amplifying its presence on social media platform TikTok.

However, Hugo Boss would remain vigilant given the uncertain near-term outlook for consumer sentiment in the region, he said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Japan's union group Rengo announces biggest wage hikes on record
Japan's union group Rengo announces biggest wage hikes on record
Mar 22, 2024
TOKYO (Reuters) -Japanese firms have agreed to raise pay by 5.25% this year, the biggest rise under comparable data since 2013, the country's largest union group Rengo confirmed on Friday. The results of the closely-watched wage negotiations are announced in several stages, in which the blue-chip firms are first to wrap up their talks in mid-March. The second announcement on...
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Mar 22, 2024
05:04 AM EDT, 03/22/2024 (MT Newswires) -- Hutchmed ( HCM ) said late Thursday it has started the registration stage for a phase 2/3 clinical trial of investigational drug sovleplenib for adult patients with warm antibody autoimmune hemolytic anemia in China. The move follows positive data from the proof-of-concept phase 2 stage of the trial and a consultation with the...
Once a beacon of stability, Vietnam to name third president in a year
Once a beacon of stability, Vietnam to name third president in a year
Mar 22, 2024
HANOI, March 22 (Reuters) - Communist-ruled Vietnam is seeking its third president in little more than a year after the resignation of Vo Van Thuong, who was only elected last year after the sudden dismissal of his predecessor. With accumulated foreign direct investment higher than its gross domestic product, Vietnam's stability is crucial to multinationals with large operations in the...
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Mar 22, 2024
(Reuters) - Popular investor Cathie Wood's ARK Invest bought nearly 10,000 shares of Reddit ( RDDT ) in the social media platform's strong market debut on Thursday, an email from the asset manager showed. A total of 9,982 shares of the loss-making company was added to ARK Next Generation Internet ETF ( ARKW ) and ARK Fintech Innovation ETF (...
Copyright 2023-2026 - www.financetom.com All Rights Reserved