Hugo Boss falls on the stock market due to stagnant sales and profits

Hugo Boss experiences a market drop after reporting stagnation in sales and an 11% decline in profits in the third quarter, worrying investors.

Hugo Boss saw a stock market decline after reporting stagnant sales and a drop in profits in the third quarter of 2024. The German multinational closed the period with sales of €1.029 billion, just 0.19% more than in the same quarter of 2023. This lack of revenue growth has negatively impacted investor confidence, driving the company’s stock down by more than 7%.

The company’s net profit also saw a significant drop, reaching €56 million, 11.11% less than in the same period last year. This decline reflects the slowdown Hugo Boss has seen in profitability, a trend contrasting with the strong growth of recent years driven by its Boss and Hugo brands. The current downturn has raised questions about the effectiveness of the company’s strategic plan, known as “Claim 5,” designed to optimize costs and improve operational efficiency.

Additionally, the company’s performance varied across regions and sales channels. Sales in Europe, the Middle East, and Africa grew by only 1.37%, while in the Asia-Pacific region they fell by 8.33%. In retail, sales dropped by 4.22%, while the digital channel showed a 6.41% increase.

Despite the situation, Boss confirmed its annual forecasts, expecting to close the year with a sales increase between 1% and 4%, and an EBIT within a range of -15% to +5%. However, the continued drop in in-store sales and the deterioration of its image of exclusivity among consumers may continue to affect its stock performance.