DB downgrades Hugo Boss, sees no near-term earnings recovery

By Reuters News

** Deutsche Bank cuts Hugo Boss BOSSn.DE to "sell" from "hold", seeing no near-term earnings recovery for the German fashion group

** It says Hugo Boss' earnings outlook continues to deteriorate as sales decline and the company remains in the midst of a distribution network reset

** The broker says growth reported up to 2025 now appears to have been of lower quality than previously thought

** "In the Q3 call, management said wholesale order intake for the upcoming season was still below the prior year, which is a negative read for 2027 sales," it says

** It expects earnings pressure to increase as a lack of operating leverage weighs on profitability

** The broker cuts its EBIT forecasts by about 3% for 2026, 23% for 2027 and 19% for 2028, citing weak wholesale trends and continued sales pressure

** Up to the previous session's close, the stock is up 6.5% YTD

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