Hugo Boss downgraded its full-year sales outlook and reported a 1% decline in Q2 sales to €1.02 billion, triggering a sharp drop in share price.
Hugo Boss (ETR:BOSS) shares plummeted, falling 7.5%, as the German designer became the latest in the luxury retail segment to issue a profit warning.
On Tuesday, in a trading update, Hugo Boss downgraded its full-year sales outlook whilst warning about slowing consumer spending on luxury goods.
It said sales had fallen 1% to €1.02 billion in its second quarter.
Hugo Boss said it now expects full-year sales between €4.2 billion and €4.35 billion, down from previous expectations of €4.3 billion to €4.45 billion. Earnings are projected to be between €350 million and €430 million, down from €430 million to €475 million.
The company blamed macroeconomic and political challenges among the reasons for its gloomier outlook.
Hugo Boss shares closed 7.48% lower at €37.35, and for 2024 to date its down 43%.
Elsewhere, this week Burberry and Swatch also warned of weaker sales and reduced demand.
