Saturday , December 5 2020

Zalando and Hugo Boss suffered from the endless summer



The unusually high temperatures for the season delayed the start of winter clothing purchases, which affected the sales of Zalando and Hugo Boss, whose shares fell on Tuesday.

In the stock market, Zalando

he took a jacket and Hugo Boss

was far from the size of the boss on Tuesday. The two groups ready to wear showed difficulties in the third quarter due to the persistence of summer temperatures that have delayed the start of sales of winter clothing. Eventually, Zalando declined by 8.52% and Hugo Boss fell 3.53%.

If investors were more lenient in the direction Hugo Bossis because the fashion team retained its forecast for the full year, ie a slight increase in its turnover and profit, while Zalando had already twice revised his prospects for 2018 in the last quarter.

The e-sales team also faces business problems, which may be worrying for investors. Including, Zalando showed a 7% decrease in the average volume of customer orders, to EUR 57,50. The team had developed new product lines, particularly in cosmetics, to try to increase the value of the customer's basket. But obviously, buying a dress does not involve the acquisition of a new tube with lipstick.

EUR 66 million

In the third quarter, Hugo Boss net earnings fell 18% to 66 million euros, while analysts expect an average of 77.3 million euros.

From July to September, Zalando suffered a operating loss of EUR 55.7 million. The ecommerce group of clothing and footwear has seen an increase in management costs. He had problems processing the parcels returned by the recipients. Their content must be reprocessed in order to reposition it. Zalando suffered delays in this process. This problem has been resolved since then, team leader Rubin Ritter said, quoting Reuters.

in the Hugo Boss, where the quarterly net profit declined by 18% to 66 million while analysts expect an average of 77.3 million, endless summer is not the only explanation for low sales (710 million euros instead of 714.10 million expected on average): the group also refers to increased pressure from competition that has made significant reductions. Exchange rate fluctuations also affected Hugo Boss's profits.

Instead, the currency market smiled at British Asos online sales teams

and Boohoo

whose results, published a few weeks ago, had exceeded expectations. Since the end of the first quarter, the pound is below the euro and the dollar. Primark, owned by AB Foods

(+ 3.02% on Tuesday in the London Stock Exchange), whose results, released on Tuesday, exceeded expectations, also benefited weakening sterling.

But the disappointments of Zalando and Hugo Boss penalized the entire retail sector, whose index hit the second biggest loss of the day after telecoms. Among other things, Inditex shares

(-1.07%) and H & M

(-2.57%) were also victims of the failures of Zalando and Hugo Boss.


Source link