German apparel group Hugo Boss lost 10% of its value on Friday after the company blamed worsening business conditions in Asia, and the Americas, for an incredibly poor sales outlook.
That isn’t a good sign for high-end designers, given that Hugo Boss is the most popular luxury menswear label in China.
The company cut its 2015 sales and earnings growth after weaker than expected trading in the third quarter.
According to Hugo Boss, earnings were down 8% on the quarter and sales dropped 1% during the same period.
China claims nearly 60% of Hugo Boss’ business in Asia.
China’s economic growth is expected to have slowed to 6.7% in the third quarter, a fairly steep decline from the 7% growth rate China delivered in the first half of 2015.
Median estimates place China’s 2016 growth at an even lower 6.5%.
Hugo Boss competitor Burberry reported the same type of steep declines during a conference call on Thursday, highlighting the problems that the collapse in China’s economy is causing for clothing retailers.