Fashion brand Hugo Boss suffered a loss in the first quarter of the year. The German brand suffered from the store closures that resulted from the outbreak of the new corona virus. The results will be even worse in the second quarter, the company said immediately.
At present, more than three-quarters of the more than a thousand Boss stores are still closed. The stores in China have reopened. There, sales in April were still a fifth lower than a year earlier. Boss expects the recovery in sales in China to continue gradually.
As stores in Europe and North America are closed, the German fashion brand thinks global sales will be halved on an annual basis in the current period. From the third quarter, the company expects a cautious recovery. Boss thinks he has enough money available to sing out the crisis, partly by reducing investments.
Boss sales, which made face masks in its factory in the home town of Metzingen in March, fell by 16 percent in the first quarter to EUR 555 million. During the measurement period, the company closed more and more stores. Online sales rose 39 percent, but that was not enough to offset the decline in retail sales. Boss recorded an operating loss (EBIT) of 14 million.