German fashion group Hugo Boss has reported stronger than expected second-quarter operating profit and reaffirmed its full-year guidance as weak consumer demand continued to weigh on business across key markets.
The company posted second-quarter earnings before interest and taxes (EBIT) of 59 million euros ($68 million), down from 81 million euros recorded a year earlier. Despite the year on year decline, the result surpassed analysts’ average forecast of 52 million euros, according to a company compiled poll.
Currency adjusted sales fell 9% to 905 million euros during the quarter, broadly in line with analysts’ expectations of 907 million euros. Hugo Boss attributed the decline to subdued consumer spending and the impact of its ongoing strategic realignment efforts.
Analysts at Jefferies said quarterly sales largely met expectations but noted that the company delivered a stronger than expected operating profit. They added that the earnings were unlikely to trigger a significant movement in the company’s share price, citing technical support for the stock and the continued presence of Frasers Group’s takeover bid.
Shares in Hugo Boss were little changed in early trading following the earnings release.
The results come as British retailer Frasers Group presses ahead with its €38 per share takeover bid for the German fashion house after securing European Union approval and making the offer unconditional.
Hugo Boss said macroeconomic uncertainty and geopolitical tensions continued to dampen consumer demand, particularly across Europe, the Middle East and Africa (EMEA).
The company added that lower store traffic in the Middle East following recent geopolitical developments placed additional pressure on the region’s performance during the quarter.
Currency adjusted sales in the EMEA region declined 13% to 532 million euros from 618 million euros recorded a year earlier.
Chief Executive Daniel Grieder said the company was encouraged by the progress achieved in the first half of the year despite persistent macroeconomic and geopolitical uncertainty.
He said the second quarter marked further progress in executing Hugo Boss’ Claim 5 strategy, which is designed to improve profitability and enhance operational efficiency.
The company said it continues to strengthen its brand through targeted marketing investments while maintaining cost discipline to improve profitability despite subdued consumer demand.
Hugo Boss maintained its financial guidance for the 2026 fiscal year, expressing confidence in its strategy despite the challenging operating environment.
Goodness Anunobi
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