Mannequins show men’s suits in a Hugo Boss showroom.
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Shares of Hugo Boss On Thursday, the corporate plunged 13% after warning it might not meet its 2025 sales goal amid weakening consumer demand.
The high-end German fashion brand was on course for its worst trading day since 2016 after it said it expects slower sales growth next yr, despite forecasting 4.2 billion euros ($4.6 billion) in 2023. Dollar) will reach – a rise of 18% the previous yr.
CEO Daniel Grieder told CNBC on Thursday that 2023 could be a “record year” but that more modest growth of three% to six% could be announced for 2024.
He added that the corporate’s original 2025 goal of achieving sales of 5 billion euros could possibly be “slightly delayed.”
“Even if consumer sentiment is a little gloomy here and there, we are actually on track and believe that we are on the right track in the future – also with regard to the macroeconomic environment and geopolitical issues,” said Grieder.
The revised forecast comes as macroeconomic and geopolitical conditions have weighed on consumer spending and other high-end brands akin to Burberry and LVMH reported a decline in sales.
However, Grieder said Hugo Boss is well positioned as an “affordable luxury brand” that may offer pricing flexibility without hurting margins.
“We are affordable luxury or a premium brand. I think our value for money for our product is right there… and that’s the sweet spot where we think we’re well positioned,” he said.
