Hugo Boss told Just Style its Russian subsidiary had been sold and it would no longer be present in Russia with its own legal entity.

“Hugo Boss will continue to fulfil its contractual obligations as part of the wholesale business model,” a company spokesperson added.

Earlier this week, German fashion giant Hugo Boss assured shareholders plans to tighten up costs will help it drive profits in the second half after second-quarter (Q2) sales failed to meet expectations.

Hugo Boss confirmed sales fell 1% in the second quarter (Q2) but did increase 3% in the first half.

Brick and mortar wholesale increased 5% in Q2 and 7% in H1. Its online arm saw a 3% increase in sales in H1 and in Q2. Brick-and-mortar retail revenues were flat in H1 but down 2% in Q2.

Hugo Boss blamed overall market uncertainty and high operating expenses for weighing on earnings growth. Earnings came in at €139m ($150.40m) for H1 and €70m for Q2.

Last month Frasers Group announced it was increasing its stake in Hugo Boss raising its investment to around €490m ($531m) based on the share’s most recent closing price.

"Hugo Boss sells Russia business to Stockmann" was originally created and published by Just Style, a GlobalData owned brand.

 

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