Hugo Boss: quarterly profit drops by more than half

The Metzingen-based fashion group Hugo Boss AG suffered significant declines in sales and profit in the first quarter of the 2026 financial year. Management attributed this to the challenging environment and the “targeted refocusing of brands and distribution channels” as part of its ongoing ‘Claim 5 Touchdown’ reform programme. The results, which the company published on Tuesday, were nevertheless above analysts' expectations.

“Following our successful final quarter in 2025, we started the new year with a clear roadmap,” explained CEO Daniel Grieder in a statement. “The market environment has become more challenging over the course of the first quarter as a result of recent developments in the Middle East. Against this backdrop, we have consistently focused on what we can influence and have resolutely entered the implementation phase of ‘Claim 5 Touchdown’.”

The group has made “tangible progress in the targeted refocusing of our brands and distribution channels, including streamlining our product ranges and further sharpening our global sales presence,” said Grieder. These measures have, as expected, been reflected in the sales performance.

Group sales shrink by nine percent

Group sales reached 905 million euros in the period from January to March, a decrease of nine percent compared to the same quarter of the previous year. Adjusted for currency effects, revenues shrank by six percent.

Sales for the main brand, Boss, fell by seven percent (currency-adjusted -3 percent) to 779 million euros. “While key brand initiatives continued to support the brand's overall momentum, performance was significantly impacted by strategic measures to strengthen long-term brand value, particularly in womenswear,” a statement said. “At the same time, menswear proved more resilient during the quarter, driven by casualwear-focused ranges.”

The Hugo label recorded a decrease of 23 percent (currency-adjusted -21 percent) to 125 million euros. According to the company, one reason for this was the “continued strategic realignment of the brand” with a “clear focus on sharpening the brand identity around contemporary tailoring.”

Revenues decline in all market regions

The group suffered sales declines in all market regions. In the EMEA region, which includes Europe, the Middle East and Africa, revenues fell by ten percent (currency-adjusted -8 percent) to 568 million euros. According to the company, this was due to declines in key markets such as Germany, France and the UK. This was a result of “continued subdued consumer sentiment” and the impact of “targeted measures to improve distribution quality.” The group explained that in the Middle East, the effects of the Iran war became noticeable from March onwards, following a “solid start to the year.”

In the Americas, sales decreased by 11 percent (currency-adjusted -5 percent) to 188 million euros. In the Asia-Pacific region, they shrank by six percent to 123 million euros. On a currency-adjusted basis, however, they exceeded the previous year's quarter by one percent. “Drivers were the return to growth in China and further sales improvements in Southeast Asia & Pacific, supported by robust development in Japan,” the company announced. Global licensing revenues remained constant at 26 million euros.

Management confirms annual forecasts

The group was able to increase its gross margin to 62.5 percent, compared to 61.4 percent in the prior-year quarter, while simultaneously reducing operating expenses. Nevertheless, earnings fell significantly due to the decline in sales. The operating profit (EBIT) shrank by 42 percent to 35 million euros. The net profit attributable to shareholders fell by 52 percent to 17 million euros.

In light of recent developments, management confirmed its annual forecasts. A currency-adjusted sales decline in the mid to high single-digit percentage range is still expected. For EBIT, which reached 391 million euros last year, the target range is between 300 and 350 million euros.

This article was translated to English using an AI tool.

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