- Hugo Boss Ag Na O.N.
- 10 March 2026 09:59:59
Source: Sharecast
The company said currency-adjusted group sales rose 2% to €4.3bn in 2025, with fourth-quarter revenue increasing 7% amid solid demand in Europe and the Americas.
Earnings before interest and tax (EBIT) climbed 8% to €391m, above analysts’ expectations of €379m in a company-compiled poll, according to Reuters.
The EBIT margin improved to 9.2%, while earnings per share rose 17% to €3.61.
Fourth-quarter performance was particularly strong, with EBIT rising 22% to €154m and the margin expanding to 12.0%.
Sales growth during the quarter was driven by a 9% increase in Europe, the Middle East and Africa and a 6% rise in the Americas, more than offsetting a 1% decline in Asia-Pacific, where full-year sales fell 5%.
Across channels, wholesale revenue from physical stores grew 14% in the fourth quarter and 2% for the year, while digital sales increased 12% in the quarter and 7% for the year.
Brick-and-mortar retail returned to growth in the fourth quarter with a 2% rise after remaining flat over the full year.
Despite the revenue growth, gross margins slipped 20 basis points to 61.5% for the year, reflecting external pressures despite sourcing efficiencies.
Operating expenses fell 3% in 2025 as the company intensified productivity and cost-control measures.
Free cash flow before leases reached €499m, broadly stable compared with €497m in 2024, supported by inventory reductions of around 10%.
Hugo Boss said it would launch a share buyback programme of up to €200m running through the end of 2027 as part of efforts to enhance shareholder returns.
At the same time, the company proposed paying only the legal minimum dividend of four euro cents per share for 2025, sharply below the €1.40 payout a year earlier, in a bid to preserve financial flexibility.
The company also reiterated its outlook for 2026, which it expects to be a year of strategic realignment under its ‘Claim 5 Touchdown’ programme.
Hugo Boss forecast currency-adjusted sales to decline by a mid- to high-single-digit percentage and EBIT to fall to between €300m and €350m as it restructured its brand and distribution strategy.
Chief executive Daniel Grieder said the company was deliberately reshaping its business to focus on profitability and cash flow after reassessing its strategic direction.
“2026 will be a decisive year of targeted brand and channel realignment,” he said, adding that the changes would temporarily weigh on financial performance but were designed to position the company for sustainable long-term growth.
The luxury sector had faced weaker demand as consumer spending softens, particularly in the United States and China.
Hugo Boss had also been adjusting its strategy by improving stores, expanding higher-growth categories such as footwear and accessories, and strengthening its womenswear offering.
Grieder said the company had not yet seen any direct impact from the escalating conflict in the Middle East, which had driven volatility in global markets and raised concerns that surging oil prices could dampen consumer spending.
At 1035 CET (0935 GMT), shares in Hugo Boss AG were up 5.68% in Frankfurt at €37.22.
Reporting by Josh White for Sharecast.com.