Hugo Boss shares plunged by more than 17% on the Frankfurt Stock Exchange on Thursday, following the publication of disappointing 2024 forecasts on the occasion of the company's annual results.

At around 10:50 a.m., the German fashion group's shares plummeted by almost 18%, the second biggest drop on the STOXX Europe 600 index behind Teleperformance.

The specialist in "accessible" luxury goods said this morning that it expects a clear slowdown in growth this year, particularly in view of the persistent weakness in consumer sentiment.

For 2024, the group is targeting growth of only 3% to 6%, well below the consensus of 9%, after recording growth of 18% last year.

"This is below the target of close to 10% growth hoped for by investors", remarked one trader.

Hugo Boss also explained that, in view of current economic and geopolitical uncertainties, its objective of achieving annual sales of five billion euros by 2025 might be slightly delayed.

In parallel with the publication of its results, the group announced that the mandate of its CEO Daniel Grieder would be renewed until the end of 2028.

Analysts believe that the company will now have to start looking for his successor.

He will be turning 67 this year, which means that this is likely to be his last term of office, and we don't think he will make it to the end', warn Deutsche Bank's teams.

The stock, which has lost over 23% since the start of the year, is heading back towards its levels at the end of 2022.

lows since the end of 2022.

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