Hugo Boss adjusted its sales and earnings forecasts, citing weakened global consumer demand, especially in China and the UK. This Hugo Boss forecast announcement led to a decline in its shares by up to 10 percent.
It now expects full-year sales to fall between €4.20 billion (US$4.58 billion) and €4.35 billion, compared with a previous forecast of €4.30 billion to €4.45 billion. #HugoBossForecast
Its second-quarter operating profit (EBIT) amounted to €70 million on a preliminary basis, representing a “massive 33 per cent miss” compared with market expectations, Deutsche Bank analyst Michael Kuhn wrote in a note to clients.
The premium clothing brand expanded aggressively in 2023, adding 102 new points of sale. Despite this effort, its shares have declined due to cautioned slower sales growth. #HugoBossForecast
Hugo Boss shares were down 9 per cent at €36.70 by 0710 GMT, hitting their lowest level since April 2021.
“The critical question now will be whether guidance has been cut enough to de-risk 2024 and provide a clearing event that the stock’s narrative can rebuild from,” analysts at Jefferies wrote.
Hugo Boss’ initial guidance for the year had already disappointed analysts expectations in March.
Alongside its first-quarter results in May, Hugo Boss forecast highlighted weaker demand in China. The forecast also expressed concerns about US consumer sentiment ahead of the presidential elections.
This week, Swatch and Richemont highlighted sluggish demand in China. Burberry followed suit with a profit warning and canceled its dividend payment for the year.
This adjustment reflects ongoing challenges in key markets, compounded by global economic uncertainties.
