The Metzingen fashion group Hugo Boss AG has felt the adverse market conditions currently felt in the first quarter of the 2025 financial year. On Tuesday, the company had to announce in sales and results. However, the clothing provider held on to his annual forecasts.
“After a successful final quarter in 2024, our business development in the first quarter of 2025 was shaped by the increasing macroeconomic uncertainty, which had a noticeably impact on the global consumer climate and thus also on our industry,” said CEO Daniel Grieder in a statement. “Against this background, we deliberately focused on the factors that we can actively influence.” For example, the group “realized additional cost efficiency” and thus “optimized global procurement activities” and further increased productivity, emphasized Grieder.
Corporate sales drop by two percent
The corporate turnover reached a height of 999 million euros in the first quarter, which corresponded to a decline of two percent compared to the same period in the same period. Adjusted to change course changes, the proceeds also shrank by two percent.
In the case of the main brand Boss, sales with menswear fell by one percent (currency -adjusted -2 percent) to 766 million euros, the revenues with possessions remained constant at 70 million euros (adjusted currency -1 percent). The Hugo label recorded a minus of two percent (currency -adjusted -2 percent) to 163 million euros.
Hugo Boss has to accept losses in all market regions
The group received the effects of the more difficult framework conditions worldwide. In the EMEA region, which includes Europe, the Middle East and Africa, sales decreased by 0.5 percent (currency -adjusted -1 percent) to 631 million euros, in America it decreased by three percent (adjusted to currency -1 percent) to 212 million euros.
In the Asian-Pacific area, the development was still “shaped by weak consumer demand in China”, according to the company. In the entire region, the proceeds shrank by six percent (currency -adjusted -8 percent) to 130 million euros compared to the previous year. The global license revenue rose by ten percent to 26 million euros.
The quarterly gain shrinks by eight percent
Although the group kept its gross margin stable and the operational expenses could easily reduce, the operational result (EBIT) fell by twelve percent to 61 million euros compared to the previous year. The net profit, which was due to the shareholder, shrank by eight percent to 35 million euros.
In view of the latest development, management confirmed its annual forecasts. The corporate turnover should therefore “remain roughly at the previous year’s level” in 2025. Rarrings are still expected in the range of 4.2 to 4.4 billion euros, which would correspond to a development between -2 and +2 percent.
At EBIT, which was 361 million euros last year, an increase will continue to be promised to 380 to 440 million euros, the EBIT margin is to be increased from 8.4 percent to 9.0 to 10.0 percent. Overall, the company is striving to “make further strategic progress and at the same time increase profitability,” says a message.