Hugo Boss to review store growth, close some outlets in China

German fashion house Hugo Boss is closing outlets in China and will review its global store network as it tries to revive its fortunes following the departure of its chief executive last month after a profit warning. Hugo Boss has been hit by a slowdown in luxury spending, particularly in China.

Last November the German label said it would restrict new store openings to top global locations as it worked to expand online sales. Yesterday it said it would close 20 of its 145 stores in greater China and make extensive renovations to others there. After a review of its entire store estate it could close more outlets elsewhere, and would open fewer than 20 stores worldwide.

A few years ago the fashion house went on a global expansion drive after being bought in 2007 by private equity firm Permira. – (Reuters)