Hugo Boss stock: record quarter and crash

Last Updated: 16. Januar 2024By

Hugo Boss stock plunges nearly 10 percent in morning trading today and is now trading below the 60 euro mark (as of January 16, 2024, around 10 am). One reason for this is that the fashion company missed expectations for its operating profit in the preliminary figures for the fourth quarter of 2023.

But profit-taking may also have played a role in the drop in stock prices. After all, Hugo Boss had a record quarter and achieved the highest revenue in the company’s history. Despite fluctuating consumer moods, overall, 2023 was a very successful year โ€“ and the outlook for the company remains strong.

Hugo Boss with record revenue in Q4 The preliminary quarterly and annual figures were truly impressive: With 1.18 billion euros in revenue, Hugo Boss achieved its highest quarterly revenue ever. The company generated a total of around 4.2 billion euros in 2023, which is 15 percent more than the previous year. In terms of revenue, Hugo Boss reached the upper end of its own forecast range.

The picture is somewhat mixed when it comes to the operating profit. While EBIT climbed by 22 percent to 410 million euros in the full year, the company had estimated it to be up to 420 million euros. In particular, the 121 million euros in EBIT from Q4 fell slightly short of expectations.

The medium-term plan remains in place for the time being. By 2025, revenue is expected to reach around 5 billion euros and EBIT to reach at least 600 million euros. In early March, the MDAX-listed company will present its goals for 2024 and the complete figures for 2023. This could provide new impetus for the Hugo Boss stock.

Hugo Boss stock: Excellent prospects despite the drop The sharp decline in the Hugo Boss stock today seems exaggerated in light of the strong Q4 figures. While the results did not fully meet expectations, EBIT still increased by 17 percent in the fourth quarter. The prospects for the stock remain at least good. The company was able to achieve significant growth in a difficult year and aims to continue this trend in the coming years.

The analysts are unanimously optimistic about the Hugo Boss stock, with price targets around 80 euros and some even higher. Immediately after the preliminary figures for 2023 were released, RBC and Jefferies confirmed their price targets of 80 euros. For investors with medium- to long-term investment horizons, the Hugo Boss stock remains an interesting investment opportunity โ€“ dips can sometimes also present good entry opportunities.