Hugo Boss: shares plunge on disappointing forecasts

(CercleFinance.com) - Hugo Boss shares plunged over 17% in Frankfurt on Thursday, following the publication of disappointing 2024 forecasts on its annual results publication.


At around 11 am, the German fashion group's shares plummeted by almost 18%, the second biggest drop on the STOXX Europe 600 index behind Teleperformance.

This morning the specialist in "accessible" luxury goods said that it expects a clear slowdown in growth this year, particularly in view of the persistent weakness in the consumer sentiment.

For 2024, the group is targeting growth of only 3% to 6%, well below the consensus of 9%, after recording growth of 18% last year.

This is below the target of close to 10% growth hoped for by investors, one trader said.

Hugo Boss also explained that, in view of current economic and geopolitical uncertainties, its target of achieving annual sales of E5bn by 2025 might be slightly delayed.

Alongside the publication of its results, the group announced that the mandate of its CEO Daniel Grieder would be renewed until the end of 2028.

Analysts believe that the company will now have to start looking for his successor.

He will be turning 67 this year, which means that this is likely to be his last term of office, and we don't think he will make it to the end, Deutsche Bank said.

The stock, which has lost over 23% since the start of the year, is heading back towards its levels at the end of 2022.


Copyright (c) 2024 CercleFinance.com. All rights reserved.