Hugo Boss ended the first quarter of the year with all its financial metrics in the red, but showing improvement and exceeding analysts’ forecasts. This result allowed the stock to gain more than four percentage points in Frankfurt, although the company warned—while confirming its forecasts for the current year—that market conditions are more challenging due to the war in the Gulf.
Quarterly results exceed expectations
During the first three months of 2026, the German group reported first-quarter revenue of €905 million, down 9% at current exchange rates and 6% at constant exchange rates—a 6% year-over-year decline— but exceeding analysts’ expectations of €887 million. Quarterly EBIT fell 42% year-over-year to €35 million, though it remained above analysts’ forecasts (€30 million). Net income also declined, falling by more than half to €17 million.
A challenging geopolitical environment
“Following the positive close to 2025, we started the year with a clear roadmap. However, market conditions became more challenging during the first quarter due to recent developments in the Middle East,” CEO Daniel Grieder said in a statement. The company stated that the conflict in the region led to a significant drop in store traffic starting in March, while global consumer sentiment remained low throughout the quarter, with a negative impact of approximately 1% on the group’s first-quarter sales. However, Grieder emphasized that the company has made progress in streamlining its product assortments and optimizing its global distribution footprint, despite geopolitical uncertainty. “In an increasingly challenging external environment, we remain firmly focused on executing our strategy, actively managing the business with flexibility and discipline,” he added.
Streamlining and Cost Reduction
As part of its strategic plan, the group has indeed taken steps to improve store productivity, including the ongoing optimization of its distribution network, with a net closure of 15 single-brand stores worldwide, primarily due to expiring leases. In addition, the company reduced its marketing expenses to €66 million in the first quarter, compared to €79 million in the same period last year, with a focus on efficiency and a more balanced allocation. “This significant reduction is likely the most negative aspect of this quarter, as it could raise concerns about the brand’s future momentum,” notes a report from Deutsche Bank. According to the financial institution, the start of the year is nevertheless “decent, and considering that the risk ahead of the results was skewed to the downside, we believe today’s results should be rather reassuring. It should be noted that the first quarter generally contributes only modestly to annual earnings,” it adds.
Performance by Brand and Region
In terms of brand-specific figures, the Boss label saw its revenue increase by 3% excluding currency effects, while Hugo, in the midst of streamlining its product offering, saw its sales drop by 21%. From a geographic perspective, the EMEA region recorded an 8% decline excluding currency effects, the Americas fell by 5%, while the Asia-Pacific region posted, to analysts’ “surprise,” a 1% increase in revenue thanks to “the resumption of growth in China and continued improvement in Southeast Asia and the Pacific.”
In terms of distribution, retail sales fell by 3%, while wholesale sales declined by 10%.
Forecasts for 2026
For 2026, the group forecasts EBIT of between 300 and 350 million euros, down from 391 million in 2025. Sales, excluding currency effects, will decline by a single-digit percentage. “Recent developments in the Middle East are adding uncertainty, causing significant disruptions to demand and retail activity,” the company states, adding that it is monitoring the situation closely. In 2025, the Middle East accounted for 3% of the group’s revenue.