Hugo Boss: Q3 earnings collapse 94%, but share jumps
(CercleFinance.com) - Hugo Boss' Q3 sales came in at 533 million euros, down 24% y-o-y (720 million euros) in adjusted currencies.
At the same time, e-commerce continues its double-digit growth trajectory (+66% in the third quarter, the 12th consecutive quarter of growth), driven by the transition of demand to digital.
Despite the decline in sales on the American continent (-41%) and in Europe (-21%), the group's operating income (EBIT) has returned to growth (+15 million euros), although remains far from its Q3 2019 level (83 million euros).
Net income came in at a token 3 million euros (down 94% compared to the third quarter of 2019), meaning EPS of just 0.06 euro.
Hugo Boss says that wants to exploit global business opportunities in the key last quarter of 2020, while remaining aware of the ongoing uncertainty regarding the future developments of the pandemic.
Despite these seemingly dismal results, the share is in demand - up over 4.5% in late morning trading on Tuesday.
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