🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Hugo Boss slumps after downbeat 2024 forecasts

Published 07-03-2024, 03:30 pm
© Reuters.

Investing.com - Shares in Hugo Boss (ETR:BOSSn) slumped in European trading Thursday after the luxury fashion retailer unveiled disappointing sales and profit forecasts for 2024, citing weak consumer demand.

At 04:45 ET (09:45 GMT), Hugo Boss stock fell 18% to €51.94, a year-to-date drop of 23%.

The German fashion giant forecast earnings before interest and taxes (EBIT) of €430-€475 million (€1 = $1.0900), below the consensus estimate of €490 million in a poll provided for the market by the company.

Sales should increase between 3% and 6% to around €4.30-€4.45 billion, also below consensus expectations of €4.56 billion, and a marked slowdown from 18% growth in 2023.

The company added that its goal of reaching €5 billion in revenue by 2025 might be slightly delayed as cash-strapped consumers cut back on discretionary spending. 

“This marks the first round of earnings downgrades following 10 consecutive upgrades, which will likely negatively impact Hugo Boss’ equity story near-term,” said analysts at Citi, in a note dated March 7, keeping a ‘neutral’ rating and a €64.10 12-month target price for now.

The U.S. bank expects mid-single digit percent and around 10% downgrades to consensus 2024 sales and EBIT forecasts, respectively, “following the 4Q23 margin miss (a reminder of how much Hugo Boss is investing to support the top line), wholesale slowing to single-digit growth in 4Q23 for the first time since the pandemic, and a cautious initial FY24E guidance amid weak consumer sentiment.”


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.