Difficult market conditions: Hugo Boss reports decline in sales and profit in first quarter
A Boss store in Tokyo Credits: Hugo Boss AG The Metzingen-based fashion group Hugo Boss AG felt the impact of the current adverse market conditions in the first quarter of the 2025 financial year. On Tuesday, the company announced declines in sales and earnings. However, the clothing supplier maintained its annual forecasts. “Following a successful final quarter in 2024, our business performance in the first quarter of 2025 was characterised by increasing macroeconomic uncertainty, which had a noticeable impact on the global consumer climate and thus also on our industry,” explained chief executive officer (CEO) Daniel Grieder in a statement. “Against this background, we consciously focused on the factors that we can actively influence.” For example, the group “realised additional cost efficiencies” and thus “optimised global procurement activities” and further increased productivity, Grieder emphasised. Group sales fall by two percent Group sales reached 999 million euros in the first quarter, a decrease of two percent compared to the same period last year. Adjusted for exchange rate changes, revenues also shrank by two percent. For the main brand, Boss, sales of menswear fell by one percent (currency-adjusted -2 percent) to 766 million euros, while revenues from womenswear remained constant at 70 million euros (currency-adjusted -1 percent). The Hugo label recorded a minus of two percent (currency-adjusted -2 percent) to 163 million euros. Hugo Boss experiences losses in all market regions The group felt the effects of the more difficult conditions worldwide. In the Europe, Middle East and Africa (EMEA) region, sales fell by 0.5 percent (currency-adjusted -1 percent) to 631 million euros, while in the Americas they fell by three percent (currency-adjusted -1 percent) to 212 million euros. According to the company, development in the Asia-Pacific region continued to be “characterised by weak consumer demand in China”. In the entire region, revenues shrank by six percent compared to the same quarter last year (currency-adjusted -8 percent) to 130 million euros. Worldwide licensing revenues rose by 10 percent to 26 million euros. Quarterly profit shrinks by eight percent Although the group was able to keep its gross margin stable and slightly reduce operating expenses, operating profit (EBIT) fell by 12 percent compared to the same quarter last year to 61 million euros. Net profit attributable to shareholders fell by eight percent to 35 million euros. In view of the recent developments, management confirmed its annual forecasts. Group sales in 2025 should therefore “remain roughly at the previous year’s level”. Revenues in the range of 4.2 to 4.4 billion euros are still expected, which would correspond to a development between -2 and plus 2 percent. For EBIT, which was 361 million euros last year, an increase to between 380 and 440 million euros is still expected, with the EBIT margin set to increase from 8.4 percent to between 9.0 and 10.0 percent. Overall, the company aims to “make further strategic progress while increasing profitability”, according to a statement. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
The Metzingen-based fashion group Hugo Boss AG felt the impact of the current adverse market conditions in the first quarter of the 2025 financial year. On Tuesday, the company announced declines in sales and earnings. However, the clothing supplier maintained its annual forecasts.
“Following a successful final quarter in 2024, our business performance in the first quarter of 2025 was characterised by increasing macroeconomic uncertainty, which had a noticeable impact on the global consumer climate and thus also on our industry,” explained chief executive officer (CEO) Daniel Grieder in a statement. “Against this background, we consciously focused on the factors that we can actively influence.” For example, the group “realised additional cost efficiencies” and thus “optimised global procurement activities” and further increased productivity, Grieder emphasised.
Group sales fall by two percent
Group sales reached 999 million euros in the first quarter, a decrease of two percent compared to the same period last year. Adjusted for exchange rate changes, revenues also shrank by two percent.
For the main brand, Boss, sales of menswear fell by one percent (currency-adjusted -2 percent) to 766 million euros, while revenues from womenswear remained constant at 70 million euros (currency-adjusted -1 percent). The Hugo label recorded a minus of two percent (currency-adjusted -2 percent) to 163 million euros.
Hugo Boss experiences losses in all market regions
The group felt the effects of the more difficult conditions worldwide. In the Europe, Middle East and Africa (EMEA) region, sales fell by 0.5 percent (currency-adjusted -1 percent) to 631 million euros, while in the Americas they fell by three percent (currency-adjusted -1 percent) to 212 million euros.
According to the company, development in the Asia-Pacific region continued to be “characterised by weak consumer demand in China”. In the entire region, revenues shrank by six percent compared to the same quarter last year (currency-adjusted -8 percent) to 130 million euros. Worldwide licensing revenues rose by 10 percent to 26 million euros.
Quarterly profit shrinks by eight percent
Although the group was able to keep its gross margin stable and slightly reduce operating expenses, operating profit (EBIT) fell by 12 percent compared to the same quarter last year to 61 million euros. Net profit attributable to shareholders fell by eight percent to 35 million euros.
In view of the recent developments, management confirmed its annual forecasts. Group sales in 2025 should therefore “remain roughly at the previous year’s level”. Revenues in the range of 4.2 to 4.4 billion euros are still expected, which would correspond to a development between -2 and plus 2 percent.
For EBIT, which was 361 million euros last year, an increase to between 380 and 440 million euros is still expected, with the EBIT margin set to increase from 8.4 percent to between 9.0 and 10.0 percent. Overall, the company aims to “make further strategic progress while increasing profitability”, according to a statement.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
This article was translated to English using an AI tool.
