Hugo Boss Surpasses Profit Expectations Despite Currency Headwinds and Global Uncertainty

German fashion house Hugo Boss announced second-quarter results that surpassed profit expectations, thanks to strict cost-cutting measures that offset the negative impact of a stronger euro. The company’s earnings before interest and taxes (EBIT) increased by more than 10% to 81 million euros, exceeding the analyst forecast of 77 million euros. This profit improvement resulted in an EBIT margin increase of 120 basis points, reaching 8.1% for the quarter.

The company's overall revenue, when reported in euros, saw a small decline of 1% to 1 billion euros, which was generally in line with analyst projections. While Hugo Boss saw growth in its EMEA and Americas regions, a muted consumer sentiment in China contributed to a drop in performance for the Asia/Pacific market. The company’s digital sales saw solid growth of 7%, while its brick-and-mortar retail performance saw a slight decline.

Despite an ongoing challenging macroeconomic environment and global consumer confidence remaining low, Hugo Boss has confirmed its full-year 2025 outlook for both sales and operating profit. The company now anticipates that sales in the Americas will remain flat for the year, a change from its initial forecast of low single-digit growth, due to the weaker U.S. dollar against the euro. CEO Daniel Grieder noted that the company remains focused on brand-building initiatives and cost discipline to drive profitability in the second half of the year.