Hugo Boss beats forecast as cost cutting exceeds target
German fashion house Hugo Boss beat forecasts for third-quarter net profit on Wednesday and said earnings for the full year would be supported by higher cost savings than originally planned, including renegotiated store rents.
Net profit fell 9pc to €81m on sales down 6pc to €703m, compared to analysts' average forecasts for €76m and €706m respectively.
The company known for its smart men's suits said extensive cost savings had helped limit the impact of falling sales on earnings, adding it now planned savings of €65m for 2016 compared with a previous target of €50m.
That helped it reiterate a forecast for full-year currency adjusted sales to fall between zero and 3pc and for operating earnings before special items to fall 17 to 23pc.