Hugo Boss: quarterly sales fall by 10 percent

The Metzingen-based fashion group Hugo Boss AG suffered significant losses in sales and profit in the second quarter of the 2026 financial year, as expected.

CEO Daniel Grieder sees the company, which is currently facing a takeover bid from British retailer Frasers Group, as on track with its reform efforts. The second quarter was “another important step” in the implementation of the Claim 5 Touchdown transformation programme, he emphasised in a statement released on Tuesday.

“Sales development continued to be shaped by our strategic refocusing and the challenging market environment. With our strategy, however, we are already making tangible progress and structurally strengthening Hugo Boss,” Grieder emphasised. “This enabled us to significantly improve the gross margin, reduce inventories and once again generate a strong free cash flow.”

Difficult market conditions curb demand

In the period from April to June, group sales amounted to 905 million euros (1,041 million dollars), missing the previous year's quarter by 10 percent. Adjusted for currency effects, revenues shrank by 9 percent.

The clothing provider explained that the company continued “the targeted refocusing of its brands and distribution channels”. However, “macroeconomic uncertainties and geopolitical tensions” weighed on demand worldwide.

The EMEA region, which includes Europe, the Middle East and Africa, was particularly affected by the adverse conditions, according to the group. There, group sales fell by 14 percent (currency-adjusted -13 percent) to 532 million euros.

“In addition to more subdued local demand in core markets such as Germany, the UK and France, this also reflects lower business with tourists in the region,” a statement said. “In the Middle East, sales fell by a double-digit percentage as a result of declining customer traffic following recent geopolitical developments.”

Management confirms annual forecasts

The gross margin increased from 62.9 to 64.9 percent due to “efficiency gains in procurement; targeted price adjustments; and a higher share of full-price sales”. Operating expenses also fell. Despite this, the operating result (EBIT) shrank by 28 percent to 59 million euros. However, it still exceeded analysts' expectations. Net profit attributable to shareholders fell by 29 percent to 33 million euros.

The latest figures gave management no reason to change the annual forecasts. For 2026, a currency-adjusted sales decline “in the mid to high single-digit percentage range” is still expected. The target for EBIT remains between 300 and 350 million euros.