Shares of Hugo Boss fell as much as 10% on Tuesday after the company cut its sales forecast, becoming the latest high-end fashion brand to be hit by ongoing troubles in the luxury goods sector.
The German fashion house said on Monday it expects full-year sales of 4.35 billion euros ($4.73 billion), slightly down from a previous forecast of 4.45 billion euros.
The company attributed the revised outlook to ongoing macroeconomic and geopolitical challenges and pointed to China and the UK as particularly challenging markets.
Shares pared losses slightly to trade down 9.3% as of 9:06 a.m. London time.
Hugo Boss said on Monday that sales at the Hugo Boss group fell 1% on a preliminary basis in the second quarter to 1.02 billion euros, driven mainly by declines in Asia and Europe.
Operating profit in the second quarter fell 42% year-on-year to 70 million euros, reflecting weak sales trends and strategic investments in the business, the company said in its preliminary report.
