Company Maintains Strategic Priorities Amid Modest Third Quarter Figures
Hugo Boss reported a 1 percent decline in third quarter sales, measured in currency neutral terms, with total sales reaching 989 million euros.
The German menswear company has experienced steady sales performance throughout the year, with fluctuations limited to one or two percentage points each quarter. For the first nine months of the year, this resulted in a 1 percent decrease in currency neutral sales, totaling 2.99 billion euros.
“Despite ongoing global market volatility in Q3, we remained focused on our strategic priorities, emphasizing long-term brand strength over short-term gains,” said chief executive Daniel Grieder in a statement.
Flagship Boss menswear sales showed no change in currency neutral terms compared to the previous year, bringing in 764 million euros for the quarter. This line makes up approximately 80 percent of the company’s total sales. During the quarter, Hugo Boss launched a collaboration with David Beckham and held a fashion show in Milan in September.
Boss womenswear sales fell by 9 percent, reaching 67 million euros, while the company’s more casual and sporty Hugo line declined 5 percent to 158 million euros. The company stated these decreases were partly due to “streamlining product assortments and refining distribution activities.”
In the region comprising Europe, the Middle East and Africa, sales declined by 2 percent to 641 million euros. Positive sales in France and Germany were offset by a decline in the U.K., according to the company.
In the Asia Pacific market, sales dipped by 4 percent, mainly due to reduced demand in China. However, in the Americas, sales rose by 3 percent in currency neutral terms, attributed to gradual improvement in the U.S. market.
Efforts throughout the year focused on “strict cost management,” including reduced marketing spending. This contributed to earnings before interest and taxes (EBIT) remaining steady, experiencing just a 1 percent decrease and totaling 95 million euros.
Following its third quarter performance, Hugo Boss reaffirmed its guidance for the full year, but indicated results are expected to fall at the lower end of its previously forecasted range. The company projects full-year 2025 sales to be between 4.2 billion euros and 4.4 billion euros, with operating profit anticipated in the 380 million to 440 million euro range.