The German fashion industry was under double pressure in March 2026. Domestically, corporate bankruptcies rose to their highest level since 2014, retail sales fell again and the Ifo Institute warned of further price increases as a result of the Iran war. At the same time, international fashion groups delivered surprisingly strong quarterly figures, supported by cost discipline and improved margins. The overall picture remained divided: increased profits and falling sales.
German economy under pressure
According to the Federal Statistical Office, German retail recorded a real sales decline of 0.6 percent month-on-month in February – a surprise for analysts. According to a YouGov survey, 40 percent of consumers planned to spend less money at Easter than last year. The Ifo Institute reported a five-point increase in price increase intentions, and the DIHK warned that the economic upheaval caused by the Iran war would not be overcome quickly. Economic researchers believed inflation of up to six percent was possible if the conflict lasted longer than four weeks. The inflation rate was 1.9 percent in February.
The number of company insolvencies filed reached 24,064 in 2025, the highest level in over ten years. The Texaid Group received approval for restructuring plans of its German subsidiaries. The bargain retailer Groschen-Markt was able to save 30 of 41 locations. Eterna Mode GmbH ceased operations after the search for investors failed. The shirt specialist’s trademark rights went to Olymp. Zalando made headlines with the planned closure of the logistics center in Erfurt; a labor court ordered the establishment of a conciliation board.
Increase in profits despite sales pressure
The reporting season revealed a dominant trend: improving margins amid weak sales. Hennes & Mauritz AB achieved an operating profit increase of 26 percent despite a decline in sales. Hugo Boss increased profits thanks to savings, but expects sales to decline in the current year. Adidas wants to increase sales by two billion euros by 2028 and extended the contract of CEO Bjorn Gulden, but disappointed with the annual forecast – the share price fell to a three-year low.
Several results stood out among German companies. Brax parent Leineweber reported a new sales record of 388 million euros. Bergzeit increased sales by 17 percent to 207 million euros. Bijou Brigitte was able to increase its annual profit. Otto formulated the goal of growing sales to ten billion euros by 2028. Bonita reported single-digit sales growth. Ludwig Beck closed 2025 with gross sales of 88 million euros. Mister Spex reduced its annual loss by 67 percent.
Numerous companies also reported internationally: Inditex achieved a profit of 6.22 billion euros. Mango reported a record year with sales of 3.77 billion euros. On Holding increased annual sales by 30 percent. Golden Goose grew 15 percent. Swarovski achieved sales of 1.97 billion euros.
Lanvin Group had a negative impact with a decline in sales of 17.6 percent. Geox lost 8.3 percent. Salvatore Ferragamo reduced its annual loss despite declining sales.
Middle East crisis dominates logistics
The closure of the Strait of Hormuz dominated the reporting. Freight rates exploded by more than 400 percent. Maersk and CMA CGM rerouted ships via the Cape of Good Hope. European fashion stocks experienced a sharp decline in prices. The DIHK and the BDI assessed the economic risks, although the BDI initially saw no immediate economic danger.
Megadeals and restructurings
The merger negotiations between Puig and The Estee Lauder Companies dominated the news. Kering launched its own Sieraden division. Frasers Group secured almost six percent of Puma. Katjes also joined Missoni after the Bogner takeover. In the AI space, Zalando revealed that 90 percent of its content is now created by machines. Bonprix introduced an AI size recommendation tool.
outlook
Adidas aims to further increase sales and profits by 2028. On predicted further growth after a sales increase of 30 percent. Zalando expects increasing sales for 2026. The Kantar study showed that German brand values have grown despite the difficult times. However, the outlook remains clouded by inflation risks, rising energy costs and geopolitical uncertainty.
Appendix: All financial results reported in March 2026
Abercrombie & Fitch — Achieved new record sales in the 2025/26 financial year, but profit fell short of the previous year.
Adidas — Announced its intention to increase sales by two billion euros by 2028 and extended the contract of CEO Bjorn Gulden; Share price fell to a three-year low after disappointing forecast.
Alpargatas (Havaianas) — Reported record results in Brazil with a net profit of R567.9 million and a return to profitability in international business.
Ba&sh — Exceeded 300 million euros in sales with a like-for-like increase of nine percent in 2025.
Mountain time — Increased sales in the 2025/26 financial year by 17 percent to 207 million euros, thereby achieving another record year.
Bijou Brigitte — Was able to slightly improve net profit in the 2025 financial year despite adverse conditions.
Bimba and Lola — Increased annual sales by seven percent to around 250 million euros.
Bonita — Achieved single-digit sales growth and a positive result in the 2024/25 financial year.
Brax (linen weaver) — Parent company reported a new sales record of 388 million euros, an increase of 7.5 percent.
Debenhams Group — Delivered adjusted EBITDA of £53 million, up 36 percent.
Dick’s Sporting Goods — Reported record sales and forecast continued growth following Foot Locker acquisition.
Farfetch (via Coupang) — Performance improved, but parent company Coupang slipped into the red in the fourth quarter.
Fossil Group — Posted narrower loss amid turnaround efforts.
G-III Apparel Group — Reported revenue and profit declines in fiscal year 2026 during planned exit from licensing agreements.
Gap — Recorded revenue growth of two percent to $15.4 billion in fiscal year 2025.
Golden Goose — Sales rose by 15 percent to 734 million euros, direct-to-consumer channel grew by 21 percent.
Gymshark — Reported sales growth for the 13th consecutive year to £646 million.
Hennes & Mauritz AB (H&M) — Operating profit rose 26 percent in the first quarter despite a decline in sales in local currency.
Hugo Boss — Profit increased thanks to savings; Decline in sales is expected for the current year; Minimum dividend of four cents per share planned.
Inditex — Achieved new records in annual sales and profits, with 6.22 billion euros in profits and 3.2 percent sales growth.
Intersport Group — Closed 2025 with a sales increase of 0.4 percent, or 1.2 percent adjusted for currency effects.
JD.com — Recorded 13 percent revenue growth in 2025 to RMB 1,310 billion.
Kontoor Brands — Exceeded expectations for fiscal year 2025 thanks to the Helly Hansen acquisition.
Lands’ End — Returned to growth in the fourth quarter.
Lanvin Group — Annual sales fell 17.6 percent in 2025.
Lenzing — Slight decline in sales in 2025, operating result improved thanks to cost-cutting measures.
Ludwig Beck — Closed 2025 with gross sales of 88 million euros, an increase of 0.9 percent.
Lululemon — Exceeded expectations in the fourth quarter; International increases offset declines in North America.
mango — Reported another record year with sales of 3.77 billion euros, an increase of 13 percent.
Mr. Spex — Reduced annual loss by 67 percent thanks to extensive reforms.
Misto Holdings (formerly Fila Holdings) — Operating profit rose 31.6 percent on sales of 4.47 trillion South Korean won.
On Holding — Increased annual sales by 30 percent to 3.01 billion Swiss francs.
Otto — Achieved sales of around 7.5 billion euros in the past financial year and is targeting ten billion euros by 2028.
Pepco Group — Remained on a growth path in the first half of 2025/26 with currency-adjusted sales growth.
Prada Group — Increased annual sales and profits, driven by the Miu Miu brand.
Salvatore Ferragamo — Sales fell by 5.7 percent in 2025.
Sport 2000 International — Achieved gross retail sales of 5.3 billion euros, a like-for-like increase of 8.2 percent.
Swarovski — Increased annual sales to 1.97 billion euros with six percent organic growth.
Van de Velde — Ended 2025 with losses in sales and profits, despite recovery in the second half of the year.
Victoria’s Secret — Exceeded expectations in fiscal year 2025/26 thanks to a strong final quarter.
Wolford — Annual sales fell by 14 percent to 76 million euros.
Zalando — Met expectations for 2025 with strong sales and profit growth and announced a share buyback program.
Zegna Group — Achieved 1.9 billion euros in sales with organic growth of 1.1 percent and increased net profit by 20 percent.
