Shares of Hugo Boss (BOSS) are down 15% after the men’s fashion company warned that it might fail to meet its sales targets.
The plunge in share price at the German high-end fashion brand is the worst one-day performance for its stock since 2016.
The sharp decline comes as Hugo Boss said that it expects sales to grow more slowly in the coming year due to weakening consumer demand.
The grim outlook comes despite Hugo Boss reporting record revenue of 4.2 billion euros ($4.6 billion U.S.) in 2023, an increase of 18% from the previous year.
However, management said that consumer spending is slowing on luxury goods and clothing, and, as a result, they expect modest growth of about 3% this year.
Macroeconomic and geopolitical events continue to weigh on consumer spending, with other high-end brands such as Burberry (BRBY) and LVMH (MC) also reporting a slowdown in sales.
Hugo Boss’ stock is now down 18% in the last 12 months and trading at 53.24 euros ($58 U.S.) per share.
