The stock price of historic German fashion brand Hugo Boss dropped 18% on Thursday – its worst trading day since 2016, writes CNBC.
Hugo Boss CEO Daniel Grieder announced record numbers for the year of 2023, but the expected growth numbers in 2024 of only 3-6% was seen as disappointing to investors. The company specifically announced that the target of €5 billion in revenue in 2025 might be slightly delayed.
Grieder was quoted as saying that “Even if consumer sentiment is getting, here and there, a bit tough, we actually are on course, and we believe that going forward — also with the macroeconomic environment and geopolitical issues — we are well on track,” but investors clearly didn’t agree with Grieder as the Hugo Boss stock plummeted.
Before the pandemic, Hugo Boss saw several years of solid earnings and dividend yields between 2-3% yearly. The company hasn’t been able to reach those levels in the post-pandemic era, even though the company still expects solid profits of €600 million in the fiscal year 2025.
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Hugo Boss is primarily owned by the Italian Marzotto Group who seem to have great confidence in CEO Daniel Grieder and the growth and sales prospects of the company.
Marzotto was the driving force behind Hugo Boss’ diversification into several lines of clothing and increased global brand visibility during the 1980s and 1990s.
Today, Hugo Boss operates in over 120 countries worldwide, offering a comprehensive range of clothing, accessories, footwear, and fragrances for both men and women. Despite its controversial past, the company has made efforts to address its history and focuses on sustainability and innovation in fashion.