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Fibre2Fashion
05-08-2025
- Business
- Fibre2Fashion
Germany's Hugo Boss sees Q2 growth amid volatility, sales hit $1.2 bn
German luxury brand Hugo Boss has reported a resilient financial performance in the second quarter (Q2) of 2025, delivering both sales and earnings growth despite a volatile macroeconomic environment. The currency-adjusted group sales rose by 1 per cent year-over-year (YoY) to €1,002 million (~$1.16 million), supported by key brand initiatives such as the successful launch of the Beckham X Boss collection. 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)
Yahoo
05-08-2025
- Business
- Yahoo
Hugo Boss' cost cuts help it report profit beat despite weak sentiment
By Linda Pasquini (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)
Yahoo
05-08-2025
- Business
- Yahoo
Hugo Boss Sales Rise in Q2, Operating Profit Up 15%
BERLIN – German menswear specialist Hugo Boss managed to hold onto growth in the second quarter of 2025. The brand saw sales rise 1 percent on a currency adjusted basis to 1.01 billion euros between April and June. That was slightly above expectations. Market analysts had expected Hugo Boss to bring in around 998 million euros over the three months. More from WWD Queen Letizia of Spain Embraces Tailored Confidence in Boss for Royal Engagement Hugo Boss' Hugo Line Debuts 3D-Printed Loafer With Zellerfeld During Paris Fashion Week Who Won the NBA Draft? The results mean that over the first half of the year, the company has tallied 2 billion euros in sales, flat on a currency adjusted basis. '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,' Hugo Boss chief executive Daniel Grieder said in a statement. But, he added, 'we delivered solid top- and bottom-line improvements.' The company's mainstay, Boss menswear, drove growth in the second quarter and sales of this category rose 5 percent to 808 million euros. Boss womenswear slipped 8 percent to 62 million euros and Hugo, the more casual line, slid 12 percent to 132 million euros. Sales in Hugo Boss' all-important home market of Europe, the Middle East and Africa rose 3 percent, currency adjusted, to 618 million euros. Hugo Boss reported a slight decline in the United Kingdom but this was offset by better business in Germany and France, the company noted. In the Americas, where Hugo Boss has been pushing hard to become a 24/7 lifestyle brand, sales grew 2 percent to 236 million euros. After a 'softer start' to the year in North America, the company was now seeing gains there, Hugo Boss said. In the Asia Pacific region, sales fell 5 percent to 124 million euros. Demand in China was 'particularly subdued.' The brightest spot on Hugo Boss' balance sheet for the second quarter came in terms of earnings before interests and taxes, or EBIT, an important indicator of day-to-day profitability. In the second quarter, Hugo Boss' EBIT rose 15 percent to 81 million euros, above market consensus. This equals a 2 percent rise, in currency adjusted terms, over the first six months of 2025. The company has been focused on controlling costs and increasing efficiencies, executives have repeatedly said. Over the same period last year, EBIT fell by 42 percent. As a result of steady sales during the first half of the year, Hugo Boss confirmed its guidance for the year. The German brand still expects group sales in 2025 to end up somewhere between a fall of 2 percent and an increase of 2 percent, with sales between 4.2 billion euros and 4.4 billion euros. It also forecasts that EBIT will total between 380 million euros and 440 million euros for the whole year. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Sign in to access your portfolio
Fashion Network
05-08-2025
- Business
- Fashion Network
Hugo Boss hit by Q2 currency effects, Beckham helps Boss Menswear to strong performance
The full-year 2025 outlook was also confirmed with group sales to remain 'broadly stable between' although that could mean anything from a 2% fall to a 2% rise, it said. But EBIT should increase by 5%-22%. The EBIT margin is targeted between 9% and 10%. The wide range of options there underlines how difficult forecasting is in the current conditions. The company explained that macroeconomic volatility will 'remain elevated, fuelled by ongoing tariff uncertainty' while 'subdued global consumer sentiment continues to weigh on industry development'. But 'key strategic initiatives' will support the business performance in H2, including the launch of a new brand campaigns and Boss Fashion Show in Milan. CEO Daniel Grieder said the quarter saw global consumer confidence remaining at a low level but 'against this backdrop, we delivered solid top- and bottom-line improvements, supported by further efficiency gains through our rigorous and sustainable cost discipline. 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'. And he added that 'our focus remains on what we can control. Building on four consecutive quarters of strict cost discipline, we are well positioned to drive further sustainable efficiencies. By intensifying our focus on fixed cost management and maintaining disciplined execution, we are confident of strengthening our profitability in the quarters ahead. At the same time, we will not compromise on our long-term strategy of further investing into our brands, product quality, distribution excellence, and our strong operational platform. 'Looking ahead, we remain confident in the great potential of our brands and our business model. By continuing to invest in brand-building initiatives, strengthening global relevance, and fostering customer loyalty, we are reinforcing our commitment to long-term profitable growth and creating sustainable value for our shareholders'.
Business Mayor
07-05-2025
- Business
- Business Mayor
Hugo Boss reports first-quarter revenue above estimates
German fashion group Hugo Boss reported a better-than-expected quarterly revenue on Tuesday and confirmed its full-year forecast. The company posted first-quarter revenue of 999 million euros (USD 1.13 billion), slightly below the 1.01 billion euros a year earlier, but above analysts' forecast of 974 million euros in a company-provided poll. The premium fashion retailer said subdued global consumer sentiment continues to weigh on the sector due to uncertainty over U.S. tariffs. 'Following a strong finish to 2024, our performance in the first quarter was affected by the rising macroeconomic uncertainty, which impacted global consumer sentiment and our industry. Against this backdrop, we continued to place strong emphasis on what we have in our control,' CEO Daniel Grieder said. Hugo Boss expects 2025 group sales to remain broadly in line with the prior year, ranging between 4.2 billion and 4.4 billion euros. Luxury groups have struggled with tighter consumer spending due to slowing demand for fashion and accessories, particularly in the U.S. and China. READ SOURCE
