Hugo Boss' cost cuts help it report profit beat despite weak sentiment
(Reuters) -Cost measures helped Hugo Boss report a slightly better than expected quarterly operating profit and confirm its outlook for 2025, the German fashion group said on Tuesday, while warning of weak consumer sentiment globally.
Earnings before interest and taxes rose 15% to 81 million euros ($93.5 million) in the second quarter, beating analysts' forecast of 77 million euros in a company-provided poll, aided by cost-cutting measures as a stronger euro weighed on sales.
When converted into euros, Hugo Boss' revenue fell 1% to 1 billion euros in the quarter, roughly in line with a market forecast of 998 million euros.
"The second quarter of 2025 was once again marked by a challenging macroeconomic and industry environment, with global consumer confidence remaining at a low level," CEO Daniel Grieder said in a statement.
Hugo Boss confirmed its sales and profit guidance for the year, but said it now expected sales in reporting currency in the Americas to remain at around last year's level, dragged by a weaker U.S. dollar against the euro. It had initially expected low single-digit percentage growth in the region.
The company will keep monitoring macroeconomic developments and tariff talks, while focusing on controlling costs and strengthening its profitability, Grieder said.
Demand in the U.S. strengthened in the quarter compared to a weaker start to the year, resulting in modest revenue growth, the company said. Demand in China remained subdued, leading to a 5% currency-adjusted decline in its Asia-Pacific sales.
Germany and France drove a 3% currency-adjusted sales rise in the Europe, Middle East and Africa region, despite a slight decline in Britain, it added.
Hugo Boss' shares were up 1.5% in early Frankfurt trade.
($1 = 0.8663 euros)
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