Hugo Boss Expects The Breakthrough In 2016 To Be Very Difficult.

(Hugo Boss) expects the difficulties of China and the US market will continue to pressure sales next year, but it will continue to invest in the Internet and store networks.

In a briefing paper published on Tuesday's investor's opening day, the German group pointed out that sales growth in 2016 may still be lower than long-term goals, that is, an increase of less than 10%. The target of basic business profit margin (25% in 2020) is possible only if the market is fully recovered.

The integration of online and offline sales launched in 2015 will continue in 2016, which will play a supporting role in the company's profits.

The investment cost is improved and the flow is increased.

The improvement will help to form the flow of funds in fiscal year 2016, and also enable the group to maintain dividend paying policy to attract investors.

Hugo Bos just lowered its sales and profit expectations for the 2015 fiscal year last month.

But Hugo Bos said China remained the main driving force for the group, even though the local luxury market recorded double-digit declines in 2015.

According to Reuters, the group plans to reduce the gap between China and other Asian markets in 2016, while improving the cost effectiveness of business.

In the US, the strong trend of the US dollar has led to a decrease in the consumption of tourists, and other businesses have greatly reduced their prices in order to retain consumers, which has had an impact on the market.

In this context, Hugo Bos hopes to improve the layout of the brand in US Department stores.

It also indicated that it was ready to accept its own impact on the sales volume of its no discount policy.