Hugo Boss Q2 2025: Sales down, profit up on cost cuts

The German fashion group Hugo Boss AG saw a slight decline in sales in the second quarter of the 2025 financial year. However, profits rose significantly due to cost reductions. Overall, the company exceeded market expectations with the results presented on Tuesday.

Group sales amounted to one billion euros in the months from April to June. This represents a one percent decrease compared to the same quarter of the previous year. Adjusted for exchange rate changes, revenues increased by one percent.

Weak demand in China impacts sales performance

The EMEA region, which includes Europe, the Middle East and Africa, saw an upward trend. Sales there reached 618 million euros, exceeding the prior-year figure by 2 percent (3 percent in currency-adjusted terms). Sales in America declined by 6 percent to 236 million euros, but increased by 2 percent on a currency-adjusted basis. Due to "persistently weak demand" in China, sales in the Asia-Pacific region fell by 8 percent (down 5 percent currency-adjusted) to 124 million euros. Global licensing revenues decreased by nine percent (-9 percent currency-adjusted) to 24 million euros.

Cost reductions boost profits

The apparel supplier made further progress in earnings in the second quarter. This was because it was able to keep its gross margin stable and reduce operating expenses thanks to "continued strict cost discipline and additional efficiency gains in key business areas".

Earnings before interest and taxes (EBIT) increased by 15 percent to 81 million euros. Net profit attributable to shareholders amounted to 47 million euros, exceeding the prior-year quarter by 27 percent.

CEO Daniel Grieder was satisfied with the results presented, given the adverse conditions. "The second quarter of 2025 was again marked by a challenging macroeconomic and industry-specific environment, in which global consumer confidence remained low," he emphasised in a statement. "Against this backdrop, we were able to achieve solid improvements in sales and earnings, supported by further efficiency gains thanks to strict and sustained cost discipline. Crucially, we remain committed to our long-term ambition to strengthen the relevance of our brands, rather than prioritising short-term gains."

Management confirms its annual forecasts

In the first half of the year as a whole, group sales fell by one percent to two billion euros, remaining virtually unchanged in currency-adjusted terms. Net profit attributable to shareholders grew by nine percent to 82 million euros.

In light of the current figures, management confirmed the existing annual forecasts. For 2025, it continues to expect sales development of -2 to +2 percent compared to the previous year. Group sales are therefore expected to be in the range of 4.2 to 4.4 billion euros. EBIT, which reached 361 million euros in 2024, is forecast to increase to 380 to 440 million euros. The EBIT margin is expected to improve from 8.4 percent to 9.0 to 10.0 percent.

This article was translated to English using an AI tool.

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