(Reuters) – German fashion brand Hugo Boss said on Thursday it expects sales to rise around 5% in 2023, marking a slowdown from a year ago despite an expected improvement in the region Asia Pacific.
The group faces a tougher basis for comparison this year after riding the wave of its brand overhaul last year, with sales up 27% to 3.65 billion euros, as had was announced in January.
In the Asia-Pacific region, Hugo Boss expects its sales in 2023 to increase by a percentage between 10% and 20%, compared to a rise of 10% last year.
The company also expects its operating profit to increase between 5% to 12% to between 350 and 375 million euros, compared to 335 million in 2022. Analysts expected an operating profit of 360 million euros. euros for 2023.
Hugo Boss expects capital expenditure for 2023 to be between 200 million and 250 million euros, up from 191 million euros a year earlier.
“The company’s investments to strengthen products, brands and digital expertise should be more than offset by further efficiencies,” Hugo Boss said in a statement.
At the opening of the Frankfurt Stock Exchange, Hugo Boss shares were down 1.9%.
(Report by Linda Pasquini and Anastasiia Kozlova in Gdansk, Dina Kartit, edited by Blandine Hénault)
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