German fashion house Hugo Boss continued to be marred by the persistent decline in global luxury spending power, with sales in the third quarter failing to show any notable improvement.
Group-wide sales were flat at slightly over €1 billion, with profit before tax slipping 12% to €78 million.
As has been the case in the luxury sector in recent years, tumbling Chinese demand for luxury items proved the biggest headwind.
“In the third quarter, ongoing macroeconomic and geopolitical uncertainties continued to impact the global industry development,” said management.
“Particularly in China, the overall market environment was affected by persistent subdued consumer demand, which in turn weighed on the business performance.”
Sales across the wider Asia-Pacific region declined by 7%, firmly offsetting incremental growth in Europe, the Middle East and the Americas.
Brick-and-mortar retail sales were down across the board.
Despite the tepid results, Hugo Boss has restated its full-year revenue growth target of between 1% and 4%.
Hugo Boss shares are down more than 35% year to date.