Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- Hugo Boss (ETR:BOSSn) reported stronger-than-expected Q1 results on Tuesday and reaffirmed its 2025 guidance, sending shares up more than 6%.
The German fashion label posted Q1 revenue of €999 million, a slight decline from €1.01 billion in the same period last year.
However, this figure exceeded analysts’ average estimate of €974 million, according to a company-led survey.
Hugo Boss anticipates its 2025 sales to be relatively stable compared to 2024, forecasting between €4.2 billion and €4.4 billion.
The company acknowledged that weak global consumer sentiment, driven in part by uncertainty surrounding potential U.S. tariffs, continues to affect the broader fashion industry.
Nonetheless, Hugo Boss noted that its diversified supply chain positions it well to adapt to shifting trade conditions.
CEO Daniel Grieder in a statement said “following a strong finish to 2024, our performance in the first quarter was affected by the rising macroeconomic uncertainty, which impacted global consumer sentiment and our industry. Against this backdrop, we continued to place strong emphasis on what we have in our control.”
RBC Capital Markets reiterated an “outperform” rating with a €45 price target, citing strong cost discipline and a better-than-expected March.
The brokerage noted Hugo Boss’s limited exposure to China (about 4%) and proactive inventory strategy as positives in navigating potential U.S. tariffs.
“We think that BOSS is a good company that is still gaining share in the premium apparel space. Although we do note a more challenging outlook for the premium apparel market, we are encouraged by improved cost control in the business now” RBC said in a note.
Luxury brands globally have been under pressure, particularly in the U.S. and China, where consumers have scaled back on spending for fashion and luxury items amid economic slowdowns and rising costs.