The latest luxury goods trend — the Asian sales slowdown — has found its latest fashion victim. Hugo Boss, owned by Britain’s Permira private equity firm, has reported a slowdown in sales growth in the region.
Sales in Asia were up just 4% in the second quarter — behind the 9% growth of the previous quarter.
But slower growth in the region has been offset by a 17% sales rise in Europe and 11% in the Americas.
The company warned in April that the market in China had deteriorated. Despite the difficulties in Asia, where China’s economy is on track for its slowest full year of growth since 1999, sales in the UK and Germany, in particular, have been strong, where tourists have helped boost demand.
Claus-Dietrich Lahrs, chief executive at Hugo Boss, said: “We are still growing in Asia. But at the moment we too are feeling the slowing in consumer demand that can be seen across the sector.”
Underlying profit for the second quarter was up 23% to €78 million. The company forecast a 10-12% full-year profit growth for 2012.
