Shares in Hugo Boss plunged as much as 21 per cent in late trading in Frankfurt following a warning from the company that operating profits, excluding one-off items, will drop in the “low double-digits” this year compared with 2015.
The high-end retailer is the latest to reveal that luxury demand is fading in Asia, where Hugo Boss said it’s “adjusting” prices. A tough discounting market in the US is also taking its toll, and the German company said that it’s scaling back distribution of the “core Boss” brand.
Its own cost-cutting won’t fully protect the bottom line from these headwinds, Hugo Boss added. Shares in the company closed down 20 per cent at €56.