Hugo Boss' update did little to shore up confidence in the luxury fashion sector with shares in Burberry and LVMH static or down in early trading.
Initially, stock in the German fashion house perked up as the results carried no nasty surprises. However, reality set when traders spied the warning that weak consumer sentiment was affecting business.
Boss shares fell back to par, while Burberry's were flat, while LVMH, owner of the Kenzo and Dior labels, saw its stock fall 1%.
In an update statement, Hugo Boss said it expects 2025 sales to be flat compared to last year, forecasting revenue between €4.2 billion and €4.4 billion, after 3% growth to €4.3 billion in 2024. CEO Daniel Grieder said global economic and political uncertainty was weighing on consumer demand.
Despite this cautious outlook, analysts pointed to a solid profit forecast. The company expects full-year operating profit (EBIT) to rise between 5% and 22% to €380-440 million, up from €361 million last year.
Hugo Boss benefited from strong holiday sales, with fourth-quarter revenue of €1.25 billion beating expectations. Sales in the Americas rose 8%, while demand in China remained weak.