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Frankfurt - Hugo Boss declined the most in four months as weakness in the US prevented the ailing German clothier from reporting an acceleration in revenue growth.
US sales fell 7%, the company said on Wednesday. Comparable sales at the company’s own retail stores worldwide declined 3%, the same rate as in the fourth quarter last year. The shares fell as much as 6.4% in Frankfurt.
Boss is seeking to revive under the leadership of Mark Langer, the former finance chief who was promoted to chief executive officer a year ago. In November, Langer said the company will return to growth in 2018 as it eliminates brands, slows down store expansion and sells more apparel online.
Hugo Boss has been limited distribution in the US to retailers after discounting in the wholesale market there led to a loss of pricing power.
The quarter was characterised by “difficult trading conditions in key markets and continued e-commerce disruption,” Citigroup analysts Thomas Chauvet and and Silky Agarwal said in a note.
Langer said the company failed to offer enough entry-level products especially in its e-commerce business, a lapse the company is trying to make up for now. The company is also closing unprofitable stores after doubling its shop network between 2010 and 2015.
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