Hugo Boss plummeted on the stock market this Tuesday after presenting results worse than expected by the market in the last part of last year. Despite the sales records, the shares of the German firm fell 11% in the mid-session, losing the level of 60 euros per share.
The luxury sector, one of the leaders in the stock market in recent times and which has served as a refuge value, has seen the panorama change and lose investor favor due to an environment of more fragile demand, rising wages and high rates, which can damage the margins.
Hugo Boss’ sales in 2023 as a whole totaled 4,197 million euros, 15% more than in 2022, placing it at the top of the company’s own forecast range. By region, they grew 11% annually in Europe, the Middle East and Africa (EMEA region); 21% in the Americas and 23% in Asia Pacific, while licensing revenue increased 13%.
With a magnifying glass on the last quarter, between October and December the company’s sales increased by 10.2%, up to 1,177 million euros.
The company expects its operating result (ebit) to reach 410 million, 22% more than in 2022 and in the middle of the range of its forecasts. But in the last quarter it would have been limited to 17%, to 121 million euros, which has disappointed a market that expected 129 million. Doubts about a slowdown in business have already set in and serve as punishment.
“We finished 2023 on a good note, making it a record year for Hugo Boss,” said Daniel Grieder, CEO, highlighting the double-digit increases in sales. In the medium term, the group’s objective is to reach 5,000 million euros in turnover in 2025 and an operating profit of at least 600 million.
The final results for 2023 will be published in March, along with the new outlook for 2024.
