Germany's Hugo Boss confirms stable FY25 outlook amid global headwinds

Despite persistent macroeconomic volatility and uncertainty surrounding tariffs, which continue to dampen global consumer sentiment, the group is committed to driving growth through brand and product initiatives. Key among these is the global launch of the first Boss collection co-designed with David Beckham in April, aimed at enhancing brand relevance, Hugo Boss said in a press release.

In parallel, the group stated that it will maintain a balanced focus on strategic investments and cost efficiency to support profitability improvements throughout the year.

Meanwhile, in the first quarter (Q1) of 2025, the group sales decreased by 2 per cent, amounting to €999 million (~$1.07 billion). This decline reflects the impact of softer consumer demand across key markets and channels, including lower traffic in the US and China, as well as a subdued retail environment globally.

It maintained a stable gross margin of 61.4 per cent, in line with the prior-year level. This performance was supported by continued efficiency gains in sourcing and more favourable product costs, which helped offset negative impacts from an adverse channel and regional mix, unfavourable currency movements, and a more promotional market environment, added the release.

Region-wise, Europe, the Middle East, and Africa (EMEA) currency-adjusted revenues declined slightly by 1 per cent, with Germany maintaining prior-year levels, while the UK and France saw minor decreases.

Similarly, revenues in the Americas were down 1 per cent, primarily due to a moderate sales decline in the US market driven by subdued demand from domestic consumers and international tourists, impacting mall and store traffic.

Nevertheless, the group sustained strong double-digit growth in Latin America. In the Asia/Pacific region, sales fell by 8 per cent on a currency-adjusted basis, as weak consumer sentiment in China continued to weigh on retail consumption.

However, this was partly offset by slight growth in Southeast Asia & Pacific, including a double-digit increase in Japan.

Channel-wise, currency-adjusted revenues in the group’s brick-and-mortar retail business—including freestanding stores, shop-in-shops, and outlets—declined by 4 per cent due to lower foot traffic in key markets such as the US and China. Meanwhile, wholesale sales were down 3 per cent, reflecting a challenging market environment and a slight timing shift in deliveries into Q2. However, the digital business in Q1 continued its upward trajectory with a 4 per cent increase.

“In light of our Q1 performance, we confirm our 2025 sales and earnings outlook. We remain committed to balancing strategic investments with disciplined cost management, to further drive brand momentum and profitability improvements throughout the year. At the same time, we are closely monitoring macroeconomic developments and remain vigilant in light of the elevated global uncertainties, including the current tariff discussions,” said Daniel Grieder, chief executive officer (CEO) at Hugo Boss. “Thanks to our flexible sourcing setup and our strong operational backbone, we are strategically positioned to adapt effectively to potential trade-related developments.”

“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,” added Grieder.

ALCHEMPro News Desk (SG)