EU and US could reach trade deal this weekend - Reuters
On Thursday, Deutsche Bank (ETR:DBKGn)’s analysts adjusted their financial outlook for Hugo Boss (ETR:BOSSn) (BOSS:GR) (OTC:BOSSY), reducing the price target from EUR 45.00 to EUR 43.00, while maintaining a Hold rating on the company’s shares. This adjustment comes ahead of the luxury fashion brand’s first quarter earnings report, which is scheduled to be released on May 6, 2025.
The forecast by Deutsche Bank reflects an anticipated continuation of the sales trend reported by Hugo Boss management during the fiscal year 2024 results call. Management had indicated a mid single-digit sales decline for the first two months of the year. Deutsche Bank expects this trend to persist into the first quarter, projecting a 4% constant currency (cFX) sales decline for Q1, which they believe will be slightly mitigated by a 0.5 percentage point foreign exchange (FX) tailwind.
In terms of profitability, Deutsche Bank forecasts a 60 basis point year-over-year improvement in gross margin for Hugo Boss. This projection is in line with the positive trend observed in the fourth quarter of the previous year. Additionally, the analysts anticipate that the company will maintain its operational expenditure (OpEx) discipline, predicting a 2% growth in overall OpEx, which includes both selling & marketing as well as administrative expenses.
Despite these positive factors, Deutsche Bank expects the EBIT margin for Hugo Boss to be 4.5% in Q1, a decline from the 6.8% margin reported in the first quarter of 2024. The analysts attribute this decrease to negative operating leverage, which they believe will outweigh the improved gross margin.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.