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In the second quarter, Hugo Boss’s revenue fell by 10% compared with the same period last year, totaling 905 million euros. Excluding currency fluctuations, the decline was 9%. The main pressure came from key European markets—Germany, the United Kingdom, and France—where the company noted a decline in consumer spending, according to Reuters. In addition, the company’s results were impacted by a decline in customer traffic in the Middle East amid geopolitical tensions. The closure of some company-owned stores, a reduction in retail space in the wholesale channel, and partners’ caution in placing new orders also had a negative impact.
Despite the decline in sales, the gross margin increased thanks to more efficient purchasing, price adjustments, and a higher proportion of goods sold at full price without discounts.
Operating profit (EBIT) fell by 28% to 59 million euros, while net profit attributable to shareholders amounted to 33 million euros, down 29% from a year earlier.
CEO Daniel Grider stated that the restructuring program continues to deliver results. According to him, under current conditions, Hugo Boss will focus on maintaining profitability and business efficiency rather than pursuing sales growth at any cost.
The company confirmed its forecast for fiscal year 2026. Hugo Boss still expects revenue in constant currencies to decline by a mid- to high-single-digit percentage compared to the 2025 figure of 4.27 billion euros. Operating profit is expected to be €300–350 million, compared with €391 million a year earlier.
Hugo Boss shares rose modestly following the earnings release, as operating profit exceeded analysts’ expectations, although revenue was broadly in line with market forecasts. Investors’ attention remains focused on the voluntary takeover bid from the British Frasers Group, which is offering 38 euros per share. Hugo Boss management considers this valuation insufficient and recommends that shareholders reject the offer. The offer expires on August 13.
