German fashion house Hugo Boss expects challenges in China and the US market to keep a lid on sales growth next year, but it said it would keep investing in its website and stores.
In a presentation released ahead of an investor day on Tuesday, Hugo Boss said it expected 2016 sales growth below its long-term target for a high single-digit rise and said it would only reach its 2020 target for a core earnings margin of 25 percent if the overall market recovered.
However, it said lower capital expenditure and a further improvement in it management of working capital would help boost free cash flow in 2016, adding it remained committed to maintaining an attractive dividend payout policy.