Hugo Boss sees slowing sales, shares drop

STORY: Hugo Boss shares fell out of fashion with investors Thursday (March 9).

Its stock price was down as much as 4% after the fashion house forecast slower sales and earnings growth this year.

The luxury group faces a tougher 12 months ahead after it rode the wave of a brand revamp last year.

The firm sees mid-single-digit percentage growth in annual sales in 2023.

It also forecast an operating profit of up to $396 million.

That's a contrast to last year when sales rose more than a quarter, while operating earnings grew almost a half.

Investors were also worried China's reopening would only provide a limited boost.

That as Hugo Boss does not have a major presence in the country.

Chinese sales made up just 6% of group sales in 2022.

But CEO Daniel Grieder said he was 'very confident' Hugo Boss could grow in China.

He said he saw upscale opportunities with a 'lot of upside' in Asia as a whole.