Weak demand in China and the UK is weighing on the sales forecast

Hugo Boss cut its sales forecast to between 4.20 and 4.35 billion euros due to weakening global demand, particularly in China and the United Kingdom.

The German brand previously expected full-year sales between 4.30 and 4.45 billion euros.

In a statement released on Monday night (15), Hugo Boss said it expects operating profit (Ebit) between 350 and 430 million euros, down from a previous forecast of 430 to 475 million euros. This is the second time this year that the company has cut its sales estimates.

When the company released its first-quarter results, it said that demand in China was slowing and there were concerns about the mood of North American consumers ahead of the presidential election, taking the stock to its lowest level since 2022.

Hugo Boss reported a 1% drop in preliminary turnover for the second quarter to 1.02 billion euros. Its operating result (Ebit) for the period was 70 million euros on a preliminary basis.

The high-end clothing brand began expansion, increasing its advertising spending and opening 102 new outlets by 2023, but its shares fell that year as the company warned of a slowdown in sales growth.

Swatch, the world leader in watchmaking, on Monday reported a sharp fall in its turnover and profit in the first half of the year, and was penalized by Chinese demand. British luxury group Burberry also issued a profit warning and decided not to pay a dividend for the current year.