Yahoo Finance Hugo Boss stock falls sharply after 2024 sales warning
Investing.com - Hugo Boss stock slumped Tuesday after the German fashion house cut its 2024 sales guidance, warning for particular difficulties in China and Britain, particularly.
At 06:20 ET (10:20 GMT), Hugo Boss stock fell 8.3% to €37.04, dropping 45% year to date.
The German fashion house said Monday that it expects full-year sales of up to €4.35 billion (€1 = $1.0900), a small drop from its previous forecast of up to €4.45 billion.
“We are operating in a period of significant global macro uncertainty, which also affected our performance in the second quarter,” CEO Daniel Grieder said in a statement.
“Although the timing of any macro recovery remains uncertain, our strategy of consistently investing in our strong brands, BOSS and HUGO, gives us confidence in our ability to continue driving above-trend growth and capturing further market share,” he added.
The guidance cut is the company’s second so far this year, and follows similar warnings from the likes of Burberry and Swatch already this week.
“We will have to wait until full results on 1 Aug to have a better understanding of the impact on 2025 guidance. But 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,” said analysts at Jefferies, in a note.
Jefferies maintained a ‘buy’ rating, with a price target of €55.
UBS, on the other hand, reduced its 12-month price target to €40, from €52, keeping a ‘neutral’ rating.
“Although the Q2 sales came in only slightly weaker than expected (-2% miss), thus confirming the company's relative outperformance vs peers, the company is not immune to the overall weaker consumer context with updated EBIT outlook implying at mid-point ~11% cut to consensus,” UBS said, in a note.
“Despite the brand's ongoing good momentum and low valuation, we remain Neutral due to limited visibility of a returning positive earnings momentum, which would be key to a re-rating.”
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