German fashion house Hugo Boss said it expected sales growth to accelerate in 2018 and net income to rise as a brand overhaul to appeal to younger consumers and efforts to improve its ecommerce offering gained traction.
Hugo Boss, which already reported a 5 percent increase in currency-adjusted sales in the fourth-quarter, said net income in the period fell by 29 percent to 45 million euros ($55.84 million), missing average analyst forecasts for 59 million.
However, it forecast sales and net profit to rise in a low to mid single-digit percentage range in 2018, while it expects to increase capital expenditure to between 170 million euros and 190 million from 128 million in 2017.
After a string of profit warnings, the maker of slick men's suits has been slashing prices in China, adding more casual and sportswear to appeal to younger customers, investing in its website and closing loss-making stores.