(Reuters) – Hugo Boss falls on the Frankfurt Stock Exchange on Thursday after announcing that it expects lower-than-expected revenue and operating profit in 2024, with the luxury group suffering from weak consumer demand, particularly in certain European markets.
The fashion house specifies that it could also fall behind on its turnover forecast for 2025.
Hugo Boss shares fell 17.8% at 09:35 GMT, recording their worst day in eight years.
The German group said it expects an operating profit (Ebit) of between 430 million and 475 million euros, up from the 410 million euros anticipated in 2023, but lower than analysts’ expectations, who expected 490 million euros, according to a consensus compiled by the company.
Revenue is expected to rise 3% to 6% to around 4.30 billion to 4.45 billion euros, also below analysts’ expectations of 4.56 billion euros, and net slowdown compared to the 18% growth recorded in 2023.
In a note, Jefferies analysts emphasize that, while the group’s outlook is conservative, “it is clear that demand conditions have continued to deteriorate.”
Hugo Boss has signaled it could fall behind its €5 billion revenue target by 2025 as consumers facing inflation and rising borrowing costs cut back on discretionary spending .
The group still expects its operating margin to reach at least 12% this year.
(Reporting Linda Pasquini and Marleen Kaesebier in Gdansk, Augustin Turpin, edited by Blandine Hénault)
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