Hugo Boss's Shares Tumble After 2019 Guidance Cut
October 11 2019 - 04:46AM
Dow Jones News
By Giulia Petroni
Hugo Boss AG's (BOSS.XE) shares tumbled Friday after the German
clothing company cut its revenue and earnings guidance for the year
in its third-quarter results Thursday, citing weaknesses in North
America and Hong Kong.
At 0802 GMT, Hugo Boss traded 13% lower at EUR39.33 a share.
"The Hong Kong protests hampered growth in Greater China, but we
believe that sluggish retail trends in the U.S. may have been the
biggest drag," Bryan Garnier analysts said.
Bryan Garnier cuts its estimates for 2019 and 2020 EPS by 11%,
considering Hugo Boss's revision new guidance on earnings before
interest and taxes, which are now expected to fall between 2% and
5%, compared with a previous estimate for growth.
On Thursday, the German premium apparel maker said it forecasts
operating profit of between 330 million euros ($362.1 million) and
EUR340 million, down from the EUR347 million last year.
Hugo Boss's poor performance also shows that polarization in the
luxury sector isn't over, coming shortly after LVMH Moet Hennessy
Louis Vuitton SE (MC.FR) reported stronger-than-expected
third-quarter sales, Bryan Garnier says.
The warning "is a cruel reminder that the German group operates
in an apparel market that is clearly more volatile than other
categories such as leather goods, beauty or jewelry," analyst
Cedric Rossi says.
The company will release full third-quarter results on Nov.
5.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 11, 2019 04:31 ET (08:31 GMT)
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