Hugo Boss Earnings: Sales Growth at the Top End Of Our Luxury Coverage; Shares Attractive

We are increasing our fair value estimate for Hugo Boss to EUR 68 from EUR 66 per share to factor in continued solid performance (toward the top end of our luxury coverage), helped by strong brand momentum. We now expect this momentum to also support sales growth in 2024, driving high-single-digit top-line growth. Thereafter, we expect deceleration to a low-single-digit growth rate to factor in generally slower growth of the apparel industry versus the "other" luxury goods category, competitiveness of the category, and Hugo Boss’ higher exposure to slower-growing developed markets. We see shares as attractive, trading in 4-star territory.