Hugo Boss share price plummets following ugly results as the US and China look set to drag on future profits

 
Billy Bambrough
Follow Billy
Hugo Boss Store Opening Hong Kong
Fashion label Hugo Boss has warned that poor sales in China and the US will drag on profit in 2016 (Source: Getty)

Hugo Boss shares have tumbled by almost 20 per cent, their biggest fall since October 2008, after it warned that sales in China and the US so far this year have been weaker than it expected.

The German-based fashion label said in a statement earnings before interest, taxes, depreciation and amortisation and excluding special items will decline by a “low double-digit” percentage this year.

Analysts polled by Bloomberg had expected just a one per cent decline for the period.

Hugo Boss ​has said it will bring prices in Asia down closer to levels in Europe and the US to try and drive sales.

At US retailers the fashion house will begin curtailing distribution, due to “highly promotional” levels of discounting eating into profits.

Hugo Boss will release its full year financial results on 10 March.