Renowned German fashion house, Hugo Boss revised its sales outlook downwards for FY24 amidst weakening global consumer demand, particularly in key markets like China and the UK.

The company now forecasts sales for the year to range between €4.20 billion ($4.58 billion) to €4.35 billion, down from its previous estimate of €4.30 billion-€4.45 billion.

In addition to lowering its sales expectations, Hugo Boss also adjusted its operating profit (EBIT) forecast to approximately €350 million-€430 million, down from the previously communicated range of €430 million-€475 million. This marks the second time this year that the fashion house has revised its sales guidance, reflecting ongoing challenges in global markets.

Earlier this year, Hugo Boss had already highlighted weaker demand in China and concerns about US consumer sentiment ahead of the presidential elections, which contributed to a decline in its first-quarter results and a subsequent drop in share prices to their lowest levels since 2022.

Preliminary figures for the second quarter show a 1 per cent decline in sales to approximately €1.02 billion, with operating profit (EBIT) reaching around €70 million on a preliminary basis. Despite efforts to expand through increased marketing expenditures and the opening of 102 new points of sale in 2023, Hugo Boss has faced headwinds in achieving anticipated sales growth, leading to investor caution and a decline in share value throughout the year.

The challenges faced by Hugo Boss mirror broader trends in the luxury goods sector, with other notable brands like Swatch and Burberry also reporting subdued sales and earnings due to weak demand for luxury items in China and other markets.