Hugo Boss expects virus hit to worsen before recovery

BERLIN (Reuters) – German fashion house Hugo Boss said it expected the impact of the coronavirus pandemic to be worse in the second quarter after it reported that sales fell a currency-adjusted 17% in the first, but added that it was seeing signs of a rebound in China and online.

The company reported first-quarter sales of 555 million euros ($605.34 million), ahead of average analyst forecasts for 548 million, while its loss before interest and taxation came in at 14 million, bigger than average forecasts for 6 million.

It expects second-quarter sales to fall by at least 50% but said it is confident the retail environment will gradually improve from the third quarter, positively impacting sales and earnings in second half of year.

(Reporting by Emma Thomasson; Editing by Michelle Martin)