Hugo Boss plots reset year as it lowers 2026 outlook

Hugo Boss has set out a strategic reset designed to streamline its business, boost cash generation and pave the way for a return to profitable growth from 2027. The company said 2026 will be a "year of consolidation and realignment" in response to a challenging global market.

Following several years of rapid expansion under its Claim 5 strategy, Hugo Boss has today announced its new mid-term plan, Claim 5 Touchdown. The German fashion group said it will deliberately slow to regroup after years of heavy investment.

While BOSS and HUGO delivered a combined 22% CAGR between 2020 and 2024, CEO Daniel Grieder said the business must now "take a step back to prepare for tomorrow’s growth," with a renewed focus on efficiency and discipline. The goal: transform the business "from great to excellent," while laying the foundations for long-term value creation.

The reset means currency-adjusted sales are expected to decline in the mid-to high-single digits in 2026, with EBIT projected between €300 million and €350 million  (£263 million and £307 million). From 2027, however, Hugo Boss expects to be firmly back on a growth trajectory.

A central pillar of the plan is a significant step-up in free cash flow generation, with the company targeting around €300 million (£307 million) annually through 2028 roughly triple recent levels.

Brand elevation will be a key focus. For example, BOSS Menswear will continue to anchor the business with its "24/7 lifestyle" positioning, while HUGO will sharpen its identity with more accessible, tailoring-led ranges.

In distribution, Hugo Boss plans to refine its footprint and improve productivity across all channels with digital remaining a core priority.

Yves Müller, CFO and COO at Hugo Boss, said: "2026 will be a year of consolidation and realignment and an important step toward positioning Hugo Boss for long-term profitable growth.

"While we expect a temporary decline in sales, we will continue to drive our efficiency agenda along the value chain to safeguard margins and strongly accelerate cash flow generation. With this stronger financial foundation, we are well-positioned to return to top- and bottom-line growth from 2027 onward and progress toward our long-term EBIT margin ambition of around 12%, reinforcing our commitment to delivering value to all shareholders."