Baader Helvea cuts Hugo Boss after weak Q3, flags frail UK, China demand
** Baader Helvea downgrades Hugo Boss BOSSn.DE to "add" from "buy" after a "weakish" Q3 and guarded forward-looking statements by the management
** It cuts estimates for the German fashion house on particularly weak consumer demand in UK and China, unfavourable channel mix effect
** The broker lowers its FY 2024 sales growth expectation from +3% to +2%, which implies sales growth of 1.5% in Q4
** It anticipates that FY adj. EBIT would slow down from -5.6% to -13.1%, with a flat Q4 adj. EBIT
** "All in all, we expect Hugo Boss to reach the lower end of its given (FY) guidance ranges," it says
** It also reduces its estimates for 2025 and 2026 below consensus
** However, it notes that, despite limited short-term catalysts for improvement, most negative news is already priced in the current share price level
** Shares in Hugo Boss have lost almost 40% of their value so far this year
Reporting by Linda Pasquini
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