Spending Drop Hits Hugo Boss

The tanking U.S. and stagnant German economies are taking their toll on German fashion house Hugo Boss, which on Wednesday adjusted its earnings forecast for the third time this year. The company posted earnings of 376.5 million euro ($378.8 million) during the third quarter, but sales were down 12 percent compared to the last quarter in Germany, where consumer spending has dropped and the market for leisure and business clothing softened. The company is forecasting global sales of 1.1 billion euro for the year, with profits of 70 million euro.

The company's executives are concerned about the company's entry into the risky women's fashion market. The "Boss Woman" range is currently experiencing the biggest drop-off in sales. Weak sales in the U.S. have also eroded profits. But a sharp increase in sales in Asia and Spain have helped keep Hugo Boss in the black. Still, Hugo Boss expects to post a loss for the fourth quarter.