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BERLIN, Germany — German fashion house Hugo Boss reported better than expected fourth-quarter sales growth on Tuesday, helped by strong demand at its renovated stores and growth in online retail.
Fourth-quarter sales rose 4 percent to €825 million ($915.34 million), adjusted for currency changes, beating average analysts' forecast of €805 million.
Shares in Hugo Boss, which have fallen by more than a quarter in the last year, were up 2.4 percent in premarket trade.
Operating profit rose 9 percent to €122 million in the quarter, in line with expectations and compensating for a profit decline in the first nine months of the year.
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In October, Hugo Boss cut its 2019 earnings forecast, citing weak demand in the United States and Hong Kong but it had predicted a recovery in the fourth quarter.
On Tuesday, Hugo Boss said the environment in Hong Kong remained difficult in the fourth quarter, although mainland China saw double-digit growth, while currency-adjusted sales fell 7 percent in the Americas, compared with an 8 percent drop in the third.
After Hugo Boss spruced up its stores, including its flagship Champs Élysées spot in Paris, currency-adjusted sales at its retail business rose 7 percent, while online sales jumped 52 percent.
Shares in other luxury goods makers rose last week after UBS said it expects 2020 to be another busy year for the sector, supported by buoyant consumer sentiment and speculation over mergers and acquisitions.
By Riham Alkousaa; editor: Emma Thomasson.
