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On Friday, Deutsche Bank (ETR:DBKGn) analysts adjusted their stance on Hugo Boss (ETR:BOSSn) stock, downgrading the rating from Buy to Hold. Alongside this change, they also reduced the price target to EUR 45.00 from the previous EUR 52.00. The decision comes after Hugo Boss reported a robust set of underlying results for the fourth quarter. The company’s EBIT guidance was nearly in line with the consensus, with a slight 1% miss compared to the forecasted FY25 EBIT before the release.
Hugo Boss has provided guidance indicating flat sales, with expectations set at the midpoint between EUR 4.2 billion and EUR 4.4 billion, compared to EUR 4,307 million in FY24. After accounting for a EUR 47 million impairment charge, the company also anticipates flat EBIT, projecting between EUR 380 million and EUR 440 million versus EUR 408 million excluding the impairment in FY24.
Despite these projections, Deutsche Bank noted negative remarks concerning current trading conditions. Hugo Boss has experienced a mid-single-digit percentage drop in sales, which falls below the guidance for FY25. The analysts expressed concerns about whether Hugo Boss will be able to achieve improvements over the course of the year.
The U.S. market, which has been a significant growth driver for Hugo Boss over the past two years, is showing signs of weakened consumer confidence. This change in consumer sentiment could potentially impact the company’s performance moving forward, as suggested by the analysts’ revised outlook on the stock.
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