Germany's Hugo Boss sees Q2 growth amid volatility, sales hit $1.2 bn
While the reported revenue declined 1 per cent due to adverse currency effects, EBIT jumped 15 per cent to €81 million (~$93.15 million), lifting the EBIT margin by 120 basis points (bps) to 8.1 per cent.
Germany's Hugo Boss has reported solid Q2 2025 results, with currency-adjusted sales up 1 per cent to €1,002 million (~$1.16 million) and EBIT rising 15 per cent to €81 million (~$93.15 million). Growth was driven by Boss Menswear and digital sales, offsetting declines in Asia and other segments. The company reaffirmed its 2025 outlook, projecting sales growth between â€'2 per cent and +2 per cent.
Brand-wise, Boss Menswear remained the company's main growth driver, with currency-adjusted sales up 5 per cent. In contrast, Boss Womenswear and Hugo declined by 8 per cent and 12 per cent respectively, as the company undertakes strategic adjustments in these segments.
Regionally, Europe, Middle East, and Africa (EMEA) and the Americas returned to growth with 3 per cent and 2 per cent increases respectively, while the Asia/Pacific region lagged, down 5 per cent, largely due to weak consumer sentiment in China.
The digital business grew by 7 per cent and wholesale by 3 per cent, though brick-and-mortar retail saw a slight 1 per cent dip.
The gross margin held steady at 62.9 per cent in Q2, aided by sourcing efficiencies and improved product costs. Operating expenses declined 3 per cent, reflecting stringent cost discipline across selling, marketing, and administrative functions.
Notably, selling and marketing costs dropped 4 per cent, with marketing investments down 10 per cent YoY in Q2, though largely due to timing shifts.
The net income of the company rose 28 per cent to €50 million (~$57.5 million), with earnings per share (EPS) increasing by 27 per cent to €0.68. Financial expenses declined 27 per cent, benefitting from favourable currency developments.
Trade net working capital (TNWC) remained stable at €839 million, though up 5 per cent currency-adjusted, due to increased inventories and trade receivables. This rise was a strategic move to mitigate tariff uncertainties. The TNWC ratio, based on a four-quarter moving average, improved to 19.7 per cent from 21.2 per cent last year.
'The second quarter (Q2) of 2025 was once again marked by a challenging macroeconomic and industry environment, with global consumer confidence remaining at a low level. Against this backdrop, we delivered solid top and bottom-line improvements, supported by further efficiency gains through our rigorous and sustainable cost discipline,' said Daniel Grieder, chief executive officer (CEO) at Hugo Boss. 'Importantly, we remain committed to our long-term ambition of strengthening brand relevance over short-term gains. The successful launch of our Beckham X Boss collection in April is just one example of how we are continuing to drive brand momentum, even in a volatile environment.'
For full year 2025, Hugo Boss is expecting group sales between €4.2 billion and €4.4 billion (–2 per cent to +2 per cent), and EBIT between €380 million and €440 million, marking a projected rise of 5 to 22 per cent. The EBIT margin is forecasted between 9 per cent and 10 per cent.
Sales are anticipated to remain stable in EMEA and the Americas, while Asia/Pacific is expected to witness a moderate decline. Capital expenditure for the year is projected between €200 million and €250 million, lower than €286 million in 2024.
Despite ongoing geopolitical and economic volatility, Hugo Boss aims to drive high-quality growth by executing new brand campaigns and fashion shows in the second half of 2025, reinforcing its global relevance and customer engagement.
'Based on our performance in the first half of 2025, we confirm our full-year outlook for both sales and operating profit. As we enter the second half of the year, our focus remains on exciting consumers, unlocking additional business opportunities and maintaining a consistent focus on high-quality growth. I am particularly excited about our upcoming Fall/Winter 2025 collections and the launch of our new brand campaigns later this month, which are set to further boost brand relevance,' added Grieder.
Fibre2Fashion News Desk (SG)
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