Hugo Boss shares tumble on the stock market after outlook cut
Hugo Boss shares have suffered a collapse on the stock market, recording a 9% drop. This sharp decline was triggered by two factors: theand downward forecasts for the current year and the publication of second quarter datawhich have highlighted persistent macroeconomic and political difficulties, negatively impacting consumer spending.
Hugo Boss expects sales between 4.2 and 4.35 billion euros, with an estimated growth between 1% and 4%below the previous forecast of 4.3-4.45 billion euros (between 3% and 6%). The operating profit (EBIT) estimates have also been reduced, with a forecast range of 350 to 430 million euros, compared to the previous estimates of 430 to 475 million euros.
Second quarter performance
The new downward forecast is closely tied to the second-quarter results, the full figures for which will be published on August 1. According to the preliminary results, sales fell by 1% to 1.015 billion euros. FactSet analysts had forecast an increase in annual sales to 4.37 billion euros and quarterly sales to 1.04 billion euros. The decrease in sales is attributed to a challenging market environment, with particular difficulties in the United Kingdom and China.
Despite the decline, Hugo Boss also highlighted that revenue in the second quarter exceeded 2019 levels by more than 50%, thanks to a growth strategy over the past three years that has increased the brand’s momentum. and increased market shares for Boss and Hugo. However, operating profit in the period fell to 70 million euros compared to 121 million in the same period of 2023, due to an increase in marketing investments (+21% to 82 million euros) and retail costs (+12% to 238 million euros). These factors were partially offset by an improvement in gross margin (+50 basis points, reaching 62.9%).
Geographically, sales grew in the Americas (+5%), while there was a slowdown in both the Emea area (-2%) and Asia/Pacific (-4%). As for distribution channels, physical wholesale showed positive momentum (+5%), while online business suffered a contraction (-4%).
Label Performance
Boss menswear revenues fell 2%, while womenswear increased 2%. Sales at the Hugo label rose 3%, helped by the launch of a new denim-focused line, Hugo Blue.
#Hugo #Boss #lowers #fullyear #estimates #market #freezes #stock