Hugo Boss Net Profit Plunged Just 38 Million 500 Thousand Euros, The Lowest In Six Years.

In the first quarter of 2016, Hugo Boss suffered the biggest predicament in six years. Net profit has plummeted to 3850 euros, the lowest in the past six years.

For men

The famous German luxury brand Hugo Boss failed to save its declining sales in China.

Recently, the first quarter 2016 earnings report showed that Hugo Boss net profit plunged 49% to 38 million 500 thousand euros.

Experts believe that in the eyes of domestic consumers, Hugo Boss has lagging behind the ranks of luxury brands, and the brand is hard to revive without changing the product design.

Financial reports show the first quarter.

The overall sales volume was 642 million 600 thousand euros, down 3.7% compared to the same period last year, lower than the market expectations of 649 million euros, and the fixed exchange rate decreased by 3%.

Net profit plummeted to 38 million 500 thousand euros from 75 million 600 thousand euros in the same period last year, the lowest in nearly six years.

Greater China and the United States led double-digit declines.

Although Hugo Boss lowered its sales of new spring products to 20% in mainland China to boost sales, mainland sales increased by 10%, but it still failed to rescue the Hong Kong and Macao regions which were in deep mire. The overall sales in the Greater China region dropped by 11%.

Regional sales in the United States dropped by 16%, while sales in Canada and South America increased only worldwide.

The company believes that sales growth will still slow this year and operating profit will continue to fall.

This year, the brand will continue to lower the prices of other commodities in order to boost the domestic market and reduce the price differentials in China and Europe.

At the same time, continue to close stores to cut costs.

Zhou Ting, the head of the field and expert of the Institute of wealth quality, said that Hugo Boss had apparently failed to grasp the core of its sales.

"At present, the main problem of brands is that consumers no longer regard them as luxury brands, and their product design is aging and innovation ability is not enough.

The brand's global price system is increasingly pparent, and prices in the mainland of China are still high, which makes it difficult to attract consumers.

Beijing Business Daily reporter noted that Hugo Boss domestic price of 20%, still about 40% more expensive than Europe.