Hugo Boss shares plunged to their lowest level since 2021 after the company slashed its profit guidance for the year, citing weakness in key markets such as China and the UK.
The German high-end fashion brand now expects operating profit of around €350 million ($381 million) to €430 million in 2024, down from a previous range of €430 million to €475 million, according to a statement late on Monday. It also lowered its sales expectations.
The shares slid as much as 11 percent on Tuesday to the lowest intraday level since April 2021. The stock traded down 8.7 percent at €36.88 as of 11:14 AM Frankfurt time and is down 45 percent year to date.
It’s a blow to the brand’s revamp led by CEO Daniel Grieder, and is the first time the company — with a market valuation of €2.6 billion — has cut full-year guidance during his tenure, Citigroup Inc. analyst Thomas Chauvet said.
The former Tommy Hilfiger executive joined in June 2021 with a strategy to revamp the clothing range and attract younger shoppers. Hugo Boss was hard hit by the shift toward casual wear during the…
