Hugo Boss shares drop 10% after profit warning linked to Chinese and U.K. challenges

From CNBC: 2024-07-16 04:57:10

Hugo Boss shares dropped 10% after lowering sales outlook to up to 4.35 billion euros. CEO cites geopolitical challenges, particularly in China and U.K. Operating profit fell 42% in the second quarter, but company anticipates profitable growth in the second half of the year. Other luxury brands like Burberry and Richemont also report slowdowns.

Burberry shares plunged 16% due to a disappointing first-quarter performance, leading to a profit warning, CEO change, and dividend suspension. Swiss luxury group Richemont reported only 1% sales growth in the first quarter amid Chinese sales drop. Slowdown in Chinese consumer spending may be overstated as shoppers resume purchases abroad.

Hugo Boss revises 2024 sales growth target to 1% to 4% from 3% to 6%, attributing it to macroeconomic and geopolitical uncertainties. Asian and European sales declines contributed to 1% fall in group sales. CEO remains confident in the strength of brands BOSS and HUGO to capture market share.



Read more at CNBC:: Hugo Boss shares plunge on profit warning amid slumping China demand