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Hugo Boss revenues increased 1 per cent on a constant currency basis to €1 billion in the second quarter of 2025, with improvements across core regions EMEA (Europe, the Middle East and Africa) and the Americas. But as the consumer climate remains challenging, the company is honing in on its cost-management measures.
EBIT improved 15 per cent year-on-year to €81 million in Q2, while gross margin remained stable at 62.9 per cent, with efficiencies in sourcing offsetting a challenging channel mix and wider market headwinds. E-commerce sales increased 7 per cent in Q2 and bricks-and-mortar wholesale increased 3 per cent, despite sales at standalone stores declining by 1 per cent year-on-year. Foot traffic at own stores remains dampened due to softened consumer demand across key markets.
The company’s operating expenses are 3 per cent below those of Q2 2024, thanks to its cost-saving initiatives across sales, marketing and administration. “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. “Against this backdrop, we delivered solid top and bottom-line improvements, supported by further efficiency gains through our rigorous and sustainable cost discipline.”
By region, EMEA and the Americas returned to growth, up 3 per cent and 2 per cent, respectively. In Europe, a stronger performance in Germany and France compensated for a decline in the UK, while in the Americas, the US (which makes up around 15 per cent of sales) saw a modest uplift and Latin America continued on its “robust growth trajectory”. Asia-Pacific declined 5 per cent, impacted by ongoing sentiment challenges in China.
In terms of brands, Boss menswear sales increased 5 per cent. The company highlighted the successful launch of its collaboration with David Beckham in April, which drove consumer engagement and delivered strong sell-through rates. Boss womenswear declined 8 per cent and Hugo declined 12 per cent at constant exchange rates. The company said it is taking “proactive steps” to strengthen those brands in the long term, such as streamlining the product assortment and refining sales activity.
The company confirmed its full-year 2025 outlook: it expects sales to be roughly flat (between -2 and +2 per cent), and for EBIT to increase between 5 and 22 per cent, with a margin of 9 to 10 per cent thanks to continued cost efficiencies. “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,” said Grieder.
The company is monitoring macroeconomic developments, including tariffs. In a call with investors, CFO Yves Müller confirmed that around 50 per cent of products imported to the US come from Europe (primarily Türkiye, but also Portugal and Italy, to a lesser extent) and that the company is prepared to absorb the effects.
Grieder emphasised the company is focusing on what it 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 in strengthening our profitability in the quarters ahead,” he said. “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.”
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