View source for Europe revival lifts sales at fashion house Hugo Boss

FRANKFURT/PARIS, Aug 2 (Reuters) - A pick-up in European sales proved the bright spot for Hugo Boss in the second quarter, as the German fashion house pursues a turnaround in its home market and updates some of its ranges to try to draw in younger shoppers.<br><br>However, earnings [https://burmatourist.com/things-to-know-before-going-to-myanmar/ before going to Myanmar] interest, taxation, depreciation and amortisation (EBITDA) before special items slipped 1 percent from a year ago to 106 million euros ($123 million) in the three months, just below average analyst forecasts for 107 million euros.<br><br>Shares in the German company fell more than 4 percent in early trade.<br><br>The company said sales rose 6 percent in the second quarter on a currency-adjusted basis, with revenues coming in at a higher-than-expected 653 million euros.<br><br>Luxury labels worldwide, including market leaders like LVMH's Louis Vuitton and Kering's Gucci, are still benefiting from strong Chinese demand in spite of a U.S.-China trade spat that has rattled markets.<br><br>Hugo Boss also did well in Asia, although the pace of sales growth in that region slowed from a quarter earlier.<br><br>But the brightest spot was for the maker of slick men's suits was its core Europe market, helping to offset a weaker performance in the Americas after its U.S. wholesale revenues declined.<br><br>Currency-adjusted sales in Europe rose 9 percent from a year ago and inched into positive territory in Germany, where the backdrop for clothing retailers has long been sluggish.<br><br>"Our strategic realignment is taking effect. We are right on track," Chief Executive Mark Langer said in a statement, adding the company was confident of meeting its 2018 targets.<br><br>Some luxury labels have struggled more than others to benefit from the boom times, as they fight it out [https://burmatourist.com/things-to-know-before-going-to-myanmar/ Things to know before going to Myanmar] attract young customers constantly in search of novelty and with shifting tastes.<br><br>Hugo Boss reversed efforts to go more upmarket and expand in womenswear after a string of profit warnings in 2015 and 2016.<br><br>It is returning to its roots selling men's suits, but also introducing more casual styles, at a time when so-called streetwear styles like hoodies and sneakers are taking catwalks by storm.<br><br>Sales at the company's "Hugo" brand, which is being updated for younger customers, fell 4 percent in currency-adjusted terms from a year earlier, although the [http://Www.Search.com/search?q=decline decline] was less marked the 6 percent drop from a quarter earlier. ($1 = 0.8599 euros) (Reporting by Vicki Bryan and Sarah White; Editing by Keith Weir)<br><br>Advertisement