Hugo Boss and Rémy Cointreau hit by luxury slowdown in China

German fashion house Hugo Boss warned it would not meet profit expectations due to a slowdown across China (GETTY IMAGES)

German fashion house Hugo Boss and French drinks group Rémy Cointreau warned they would not meet profit expectations due to a slowdown across China, with both companies today blaming profit warnings on the country.

Boss said it would miss its €750 million (£630 million) operating profit target for 2015 as chief executive Claus-Dietrich Lahrs said China “came down to a rather disappointing growth rate for the luxury industry in 2013.” But it said it was sticking to its target of reaching €3 billion sales in 2015. 

Meanwhile liqueurs, spirits, champagne and cognac owner Rémy Cointreau said it expected a “substantial” drop in annual profit caused by weaker sales in Europe and Asia, as first-half operating profits fell 7.3 per cent to €132.7 million (£110 million).

The Hugo Boss warning comes only a month after private equity group Permira — which backs the fashion label through London-listed SVG Capital —  recapitalised the group and took out £110.9 million in cash as its value grew.

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