Latest news with #DanielGrieder
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
Fashion Network
06-05-2025
- Business
- Fashion Network
Spooked by US tariffs, retailers look for growth in Europe
U.S. President Donald Trump 's administration has slapped a blanket 10% tariff on all imports into the country, and 145% tariffs on goods made in China. German clothing brand Hugo Boss has rerouted China-manufactured products to other markets instead of the U.S., and said there was a "notable deterioration" in U.S. consumer spending in the first quarter due to growing uncertainty over the economy. "We are currently taking a rather cautious stance regarding consumer behavior in the U.S.," its CEO Daniel Grieder said on Tuesday as the company reported lower revenues compared to last year. The reaction highlights the impact of Trump's tariffs on the flow of consumer products around the globe, forcing companies to shake up long-established patterns of manufacturing and sales. Key will be how U.S. consumers react to price increases as a result of tariffs. Barbie maker Mattel on Monday pulled its annual guidance, saying there was too much uncertainty over consumer spending, and that tariffs would force it to raise prices in the U.S. For its card game UNO, Mattel said it was shipping more China-manufactured games internationally to avoid U.S. tariffs on Chinese goods, while increasing production of UNO in India to serve U.S. customers. The CEO of Italian fashion group OTB, which owns brands including Diesel, Jil Sander and Maison Margiela, said on Monday it would have to increase its prices in the U.S. by 8-9% to offset the impact of tariffs. While European brands previously proudly advertised their sales to U.S. consumers, world leaders in spending on clothes and shoes, they have pivoted to trying to reassure investors they are not overly exposed. The U.S. accounts for around 20% of German sportswear brand Adidas ' business, CEO Bjorn Gulden said last week in a results call, adding that "for 80% of our business these tariffs have no impact". "We believe we can currently gain more momentum in the other markets," said Gulden. "We can kind of finance the losses... on margin in the U.S. by overachieving in the other markets." More focus on Europe will however increase competition among retailers, and may make it harder for brands to win over new customers. The tariffs have also triggered concerns in the region that low-value goods could be dumped on the market. Cut-price online retailers Shein and Temu, whose main market is the U.S., have increased their advertising spend in Europe as they seek to mitigate the impact of the U.S. hiking tariffs on Chinese goods and removing a duty-free exemption for low-value e-commerce packages from China.
Fashion Network
06-05-2025
- Business
- Fashion Network
Hugo Boss Q1 revenue beats estimates but sales and profits still fall
Fashion group Hugo Boss announced better-than-expected Q1 revenue on Tuesday, despite the quarter being slightly down on the same period a year ago. It also confirmed its full-year guidance. First-quarter revenue dipped to €999 million at the German company, a little below the €1.01 billion of a year earlier, but beating analysts' forecast of €974 million. The company — in which UK-based Frasers Group holds a major stake — said 'increased macroeconomic uncertainties' dented global consumer sentiment and impacted industry development. But 'consistent execution of strategic growth initiatives [drove] brand momentum' and limited the decline in currency-adjusted group sales to 2% during the quarter. By region, that dip divided into currency-adjusted revenues in both EMEA and the Americas being down 1%, but Asia/Pacific dropped 8%, 'impacted by ongoing subdued consumer demand in China'. Sales in Germany were stable but France and the UK were down slightly. The group maintained its double-digit growth trajectory in Latin America. Boss Menswear dipped 2%, Boss Womenswear was down only 1% and Hugo dropped 2%. On the plus side, the digital business continued its growth trajectory with a 4% rise, partially offsetting revenue declines in both direct physical retail (-4%) and physical wholesale (-3%). The gross margin was 'stable, as efficiency gains in sourcing compensate[d] for headwinds resulting from the challenging market environment'. The group's profit on an EBIT basis was down to €61 million from €69 million a year ago, 'supported by further efficiency gains, resulting in an EBIT margin of 6.1% in Q1'. The company confirmed its expectation for the whole of 2025 saying group sales will be 'broadly stable' (that is, anywhere from down 2% to up 2%), while EBIT will increase by anything between 5% to 22% and the EBIT margin is targeted between 9% and 10%. The wide range of its guidance underscores the fact that 'macroeconomic volatility [is] to remain elevated, intensified by ongoing tariff uncertainty [and] subdued global consumer sentiment continues to weigh on industry development'. But brand and product initiatives will 'further fuel brand relevance, including [the] global launch of first Boss collection co-designed with David Beckham in April'. CEO Daniel Grieder said of all this: 'Following a strong finish to 2024, our performance in the first quarter was affected by the rising macroeconomic uncertainty. Against this backdrop, we continued to place strong emphasis on what we have in our control. 'We further advanced our most impactful strategic initiatives, such as our Boss One bodywear campaign with David Beckham, to further strengthen the relevance of Boss and Hugo. At the same time, we continued to realise cost efficiencies, optimising our global sourcing activities and unlocking further productivity gains. Altogether, these efforts supported our top- and bottom-line development in the first quarter. 'We remain committed to balancing strategic investments with disciplined cost management, to further drive brand momentum and profitability improvements throughout the year. At the same time, we are closely monitoring macroeconomic developments and remain vigilant in light of the elevated global uncertainties, including the current tariff discussions. Thanks to our flexible sourcing set-up and our strong operational backbone, we are strategically positioned to adapt effectively to potential trade-related developments.'
Fashion Network
06-05-2025
- Business
- Fashion Network
Spooked by US tariffs, retailers look for growth in Europe
U.S. President Donald Trump 's administration has slapped a blanket 10% tariff on all imports into the country, and 145% tariffs on goods made in China. German clothing brand Hugo Boss has rerouted China-manufactured products to other markets instead of the U.S., and said there was a "notable deterioration" in U.S. consumer spending in the first quarter due to growing uncertainty over the economy. "We are currently taking a rather cautious stance regarding consumer behavior in the U.S.," its CEO Daniel Grieder said on Tuesday as the company reported lower revenues compared to last year. The reaction highlights the impact of Trump's tariffs on the flow of consumer products around the globe, forcing companies to shake up long-established patterns of manufacturing and sales. Key will be how U.S. consumers react to price increases as a result of tariffs. Barbie maker Mattel on Monday pulled its annual guidance, saying there was too much uncertainty over consumer spending, and that tariffs would force it to raise prices in the U.S. For its card game UNO, Mattel said it was shipping more China-manufactured games internationally to avoid U.S. tariffs on Chinese goods, while increasing production of UNO in India to serve U.S. customers. The CEO of Italian fashion group OTB, which owns brands including Diesel, Jil Sander and Maison Margiela, said on Monday it would have to increase its prices in the U.S. by 8-9% to offset the impact of tariffs. While European brands previously proudly advertised their sales to U.S. consumers, world leaders in spending on clothes and shoes, they have pivoted to trying to reassure investors they are not overly exposed. The U.S. accounts for around 20% of German sportswear brand Adidas ' business, CEO Bjorn Gulden said last week in a results call, adding that "for 80% of our business these tariffs have no impact". "We believe we can currently gain more momentum in the other markets," said Gulden. "We can kind of finance the losses... on margin in the U.S. by overachieving in the other markets." More focus on Europe will however increase competition among retailers, and may make it harder for brands to win over new customers. The tariffs have also triggered concerns in the region that low-value goods could be dumped on the market. Cut-price online retailers Shein and Temu, whose main market is the U.S., have increased their advertising spend in Europe as they seek to mitigate the impact of the U.S. hiking tariffs on Chinese goods and removing a duty-free exemption for low-value e-commerce packages from China.
Bloomberg
06-05-2025
- Business
- Bloomberg
Hugo Boss Reroutes Products Made in China to Non-US Markets Due to Tariffs
Hugo Boss AG is rerouting products made in China to non-US markets, in another sign of how President Donald Trump's tariff war is reshuffling global trade. Chinese-made apparel currently accounts for about 4% of Hugo Boss's US volume. With those goods going elsewhere, the retailer is sourcing more products for the US market from countries such as Peru and Turkey, which are relatively less affected by tariffs, according to Chief Executive Officer Daniel Grieder.
