The net profit of Hugo Boss in the second quarter of 2016 fell by 84%

Net profit (RAS) German fashion house Hugo Boss in the second quarter fell to 84%, according to Reuters.

Adjusted operating profit fell by 13% to €108 million ($ 120 million). Sales in April—June decreased by 4%, to €622 million This, however, was better than analysts ‘ forecasts, who had expected sales at €611 million, gross profit of the group increased by 67.6 percent in the second quarter.

“To return to profitability in the medium term, we made a number of decisions that first and foremost painful. Market conditions will remain challenging for the foreseeable future,” said new CEO mark Langer.

In this regard, the company will close about 20 stores, including large and with a long lease, within the next 18 months in Asia, Europe and North America. Earlier it became known about closing 20 stores in China.

Hugo Boss currently forecasts a decline in annual sales, adjusted for exchange rate fluctuations, from zero to three percent compared with an average analysts ‘ forecast of 2.5%. They also expect operating profit before special items would fall to 17-23%.