Hugo Boss stock treads water despite solid quarterly figures

Initial euphoria fades throughout the trading day: The quarterly figures of the fashion company Hugo Boss initially spurred optimism among investors, shortly sending the stock climbing almost 4 percent, before a subsequent letdown from cautious statements regarding the China business caused the share price to plunge by nine percent. By the end of the day, the security reigned as the uncontested loser in the MDax, which showed little change. Already in November of the previous year, the shares of Hugo Boss were trading at a similar level. The break through the 21-day line, a frequently used market guideline for short-term trends, reinforced the negative impression. Facing a challenging start to the year 2024, the stock of the luxury fashion house has already recorded a loss of value of nearly 32 percent. This deficit was not offset by the fact that business performance at the start of the year could turn out better than originally expected, despite a cautious stance from consumers. Analyst Chiara Battistini of JPMorgan noted in an initial statement the positive effect of reduced marketing expenditures, resulting in a slightly better profit outcome. Hopes for a share price liberation stroke through the publication of the quarterly figures remained unfulfilled among analysts. Particularly restrained comments from management about the business situation in China during the earnings call dampened the mood. The decline in the high single-digit percentage range, measured against a challenging comparison base from the previous year, is worrisome. Kering, the French fashion house behind the luxury brand Gucci, recently signaled similar issues due to the reluctance of affluent clientele in China. The positive evaluation from Baader Bank, which included Hugo Boss stock on its list of 'Top Picks' in reaction to better-than-anticipated quarterly figures, provided only a transient supporting effect. Analyst Volker Bosse highlighted the low valuation level and stabilizing economic data, referring to current consumer sentiments and the Ifo Index.