* Q1 sales 607 mln eur vs Rtrs poll avg 592 mln
* Q1 core profit up 13 pct to 148 mln
* Says China market deteriorating
* Shares indicated 0.2 pct higher
FRANKFURT, April 26 German fashion house Hugo
Boss said it would focus on opening its own stores
and expanding into smaller cities in China as growth in the main
driver of the luxury industry slows in 2012.
"Although the market environment in China has deteriorated
somewhat due to the more cautious consumer sentiment recently,
we are nonetheless confident that we will be able to hold our
own in the tough competition," Chief Executive Claus-Dietrich
Lahrs said as the group reported a 10 percent rise in
It said it planned to open 50 of its own stores this year,
with the focus on China, but added it would also look at
expanding its presence in Europe.
Sales at luxury companies from LVMH to Richemont
and Burberry soared last year, as Chinese
demand for high-end European brands surged.
Even though growth in Asia is expected to slow this year,
many companies, like LVMH, have said Europe remains more of a
Hugo Boss, known for its sharp suits, said the Europe market
had been mixed in the first quarter, with sales growing in
Germany, the UK and Benelux countries, while France remained
It maintained its forecast for currency-adjusted sales to
rise by up to 10 percent in 2012, while core profit should rise
at a faster rate.
The group reported first quarter sales of 607 million euros
($800 million) with operating profit before special items up 13
percent at 148 million euros.
Analysts had been expecting the group to report
first-quarter sales of 592 million euros, according to a Reuters