Sportier Hugo Boss expects capex to dent profit, but sales will climb
Metzingen — German fashion house Hugo Boss expects heavy investment on integrating its websites and stores to keep a lid on profit growth in 2018 even as a shift to add more casual styles helps sales to accelerate. Hugo Boss shares were down more than 4% at 1050 GMT, one of the biggest losers on the German mid-cap index as investors fretted about the higher spending. The group will increase capital expenditure in 2018 to between €170m-€190m from €128m last year. Most of the money will go on revamping 150 stores and improving integration with ecommerce. After a string of profit warnings in 2015 and 2016, chief Mark Langer reversed efforts to take the brand more upmarket and expand in women’s wear, focusing back on premium men’s clothing, but with a more modern twist. Known for its sharp suits, Hugo Boss already makes more than half its menswear sales from casual styles, about 40% from formal wear and about 10% from shoes, Langer told a news conference. "The boundaries between formal ...
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