HUGO BOSS Posts Loss In Q1; Sales Down 16% - Quick Facts

HUGO BOSS (HUGSF.PK) reported a first quarter net loss of 18 million euros compared to profit of 37 million euros, previous year. Loss per share was 0.26 euros compared to profit of 0.53 euros. Operating result (EBIT) was negative at 14 million euros.

First quarter sales decreased 16% year-on-year to 555 million euros. This corresponds to a currency-adjusted decline of 17%. The company noted that the COVID-19 pandemic and the related temporary closures of retail stores resulted in a decline in sales, profitability, and cash flow in the first three months of the year.

HUGO BOSS expects both sales and earnings declines in the second quarter to be more pronounced than those recorded in the first quarter. The company projects currency-adjusted Group sales to decrease by at least 50% in the second quarter.

HUGO BOSS targets additional cost savings of at least 150 million euros over the course of the year. The company's initial investment budget for 2020 of around 150 million euros will be reduced by around one third. HUGO BOSS aims at reducing the inventory inflow in fiscal 2020 by at least 200 million euros compared to its initial plan.

The company will hold its Annual Shareholders' Meeting entirely virtually on May 27, 2020. The Managing Board and Supervisory Board will propose that the dividend payment for fiscal 2019 will be suspended, except for the legal minimum dividend of 0.04 euros per share. The Investor Day, originally scheduled for June 18 and 19, 2020, has been postponed.

At the end of the first quarter, the Group had cash and cash equivalents of 102 million euros.

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