Despite continuous macroeconomic instability and uncertainty around tariffs, which continue to reduce global consumer spirit, are committed to increasing growth through group brands and product initiatives. Hugo Boss said in a press release that the chief of these is the global launch of the first boss collection co-co-co -med with David Beckham in April.
Hugo Boss has estimated the sale of FY25 to stay stable, despite global uncertainties and tariffs, (+2 percent yoy from -2 percent YOY) and EBIT is to increase 5–22 percent. Q1 2025 sales fell by 2 percent to € 999 million (~ $ 1.07 billion), although digital sales increased by 4 percent. The group focuses on strategic investment, and cost efficiency to increase profitability and navigate macroeconomic challenges.
In parallel, the group stated that it would maintain balanced attention to strategic investment and cost efficiency to support improvement in profitability throughout the year.
Meanwhile, in the first quarter of 2025 (Q1), group sales declined by 2 percent, which increased to € 999 million (~ $ 1.07 billion). This decline shows the impact of soft consumer demand in major markets and channels including low traffic in the US and China, as well as a retail environment globally.
This maintained a stable gross margin of 61.4 percent, according to the level of pre-year. This performance was supported by the continuous efficiency gains in sourcing and more favorable product costs, which helped offset negative effects from an adverse channel and regional mixture, adverse currency movements and a more promotional market environment, said the release said.
Region-wise, Europe, Middle East and EMA (EMA) currency-reflected revenue declined by 1 percent, Germany maintained the level of pre-year, while UK and France noticed that there was a slight decrease.
Similarly, the revenue in the US was below 1 percent, mainly due to domestic consumers and international tourists affecting malls and stores traffic from domestic consumers and international tourists demanding a moderate sales in the US market.
Nevertheless, the group maintained a strong double -digit growth in Latin America. In the Asia/Pacific region, sales declined by 8 percent on curiosity basis, as weak consumer spirit in China continued to weigh up retail consumption.
However, it was partially offset by slight increase in Southeast Asia and Pacific, including an increase in double digits in Japan.
Channel-wise, brick-and-mortar in the retail business of the revenue group-freestanding stores, shop-in-shops, and outlets, including a low-foot traffic in major markets like-USA and China, up to 4 percent wounds. Meanwhile, wholesale sales were 3 percent lower, reflecting a challenging market environment and a slight timing shift in delivery in Q2. However, in Q1, the digital business continued to projection with a 4 percent increase.
“In the light of our Q1 performance, we confirm our 2025 sales and earning approaches. We are committed to balance strategic investments with disciplined cost management, to advance the improvement of brand speed and profitability throughout the year, at the same time, we are closely monitoring the macroeconomic developments and the current tariffs are closely monitor Tariffs include, ” Chief Executive Officer (CEO) Daniel Grider at Hugo Boss. “Thanks to our flexible sourcing setup and our strong operating backbone, we are strategically deployed to adapt to potentially related development related development.”
“With our two powerful brands, our flexible supply chain, and our agile organizational platform, I am convinced in our ability to successfully navigate the external challenges. We are well deployed and strongly committed to continue our journey 2025 and beyond,” said the grider.
Fibre2fashion news desk (sg)
