Hugo Boss: key resistance at 27,27E

Downward trend
Hugo Boss, a luxury fashion house, reported that 1Q EBIT slumped 75% on year to 14 million euros and revenue declined 16% (-17% currency-adjusted) to 555 million euros, citing the COVID-19 pandemic. In addition, the company said it will suspend the dividend payment for fiscal year 2019, except for the legal minimum dividend of 0.04 euro per share. 

Regarding the outlook, the company stated: "HUGO BOSS hence expects currency-adjusted Group sales to decrease by at least 50% in the second quarter. Nevertheless, the company is confident that from the third quarter on, the retail environment will gradually improve. This should also positively impact the Group's sales and earnings development in the second half of the year."

From a technical perspective, the stock price remains capped by a key horizontal resistance at 27,27E (March 16th gap). Bollinger bands are narrowing meaning that the price is likely to fluctuate within a trading range on a short term basis. Readers may want to wait until the stock price breaks above the resistance at 27,27E before opening long positions. 

As long as 27,27E is resistance, the price could fall again towards March 19th low at 19,11E. A break above 27,27E would call for a quick rise towards 34E (20WMA).

Market chart demonstrating Hugo Boss Key Resistance At 27E. Published in May 2020 by FOREX.com

Source: GAIN Capital, TradingView

 
Related tags: earnings Coronavirus Germany

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