Hugo Boss reports better-than-expected results after bracing for weaker consumer sentiment

Hugo Boss has reported better-than-expected first-quarter results, demonstrating resilience amid global macroeconomic uncertainty. Despite subtle sales dips, the German fashion label reaffirmed its full-year 2025 outlook.

Although it finished 2024 on an all-time high, for the first quarter of 2025, the company posted currency-adjusted sales of €999 million (£859 million), a 2% decline from €1.014 billion (£872 million) in Q1 2024.

Operating profit (EBIT) dropped 12% year-on-year to €61 million (£52.5 million), bringing the EBIT margin to 6.1%, down from 6.8% in the previous year.

Daniel Grieder, Chief Executive Officer of Hugo Boss, said: "Following a strong finish to 2024, our performance in the first quarter of 2025 was affected by the rising macroeconomic uncertainty, which impacted global consumer sentiment and our industry. Against this backdrop, we continued to place strong emphasis on what we have in our control.

"We further advanced our most impactful strategic initiatives to strengthen the relevance of BOSS and HUGO. At the same time, we continued to realise cost efficiencies across important areas of our business, optimising our global sourcing activities and unlocking further productivity gains."

In terms of brands, BOSS Menswear declined by 2%, BOSS Womenswear slipped by 1% and HUGO fell by 2%.

Geographically, EMEA and the Americas both declined slightly by 1%, with relatively stable sales in Germany but softer results in the UK and France. In Asia/Pacific, revenue fell 8%, primarily due to ongoing weak demand in China.

The Group’s license business grew 10%, thanks to strong performance in categories such as fragrances, watches, and eyewear. However, brick-and-mortar retail revenue declined by 4%, and wholesale dropped by 3%. Its digital business grew 4%, supported by "a robust increase in sales through third-party platforms and partnership"s.

Despite persistent macroeconomic and geopolitical volatility, including the impact of tariff uncertainties, Hugo Boss said it expects sales to remain broadly in line with 2024 levels, ranging between €4.2 billion and €4.4 billion (£3.61–£3.79 billion).

Operating profit is forecast to rise between 5% and 22%, reaching between €380 million and €440 million (£327–£379 million), with the EBIT margin improving to between 9% and 10%.

Grieder concluded: "With our two powerful brands, our resilient supply chain, and our agile organisational platform, I am confident in our ability to successfully navigate the external challenges ahead. We are well-positioned and firmly committed to continuing our journey in 2025 and beyond."