The Boss Hugo German reported solid results of the second quarter of 2025, with sales appropriate to the currency increase of 1 % to € 1.002 million (~ $ 1.16 million) and Ebit which increases by 15 % to € 81 million (~ $ 93.15 million). Growth has been led by men’s clothing and digital sales, compensating for falling in Asia and other segments. The company reiterated its perspectives of 2025, projecting a growth in sales between -2 percent and +2 percent.
As for the brand, the clothing bosses remained the main growth pilot of the company, with sales adjusted in currency increasing by 5 %. On the contrary, Boss Womens clothing and Hugo have decreased by 8 % and 12 % respectively, since the company undertakes strategic adjustments in these segments.
At the regional level, Europe, the Middle East and Africa (EMEA) and the Americas returned to growth with increases of 3 %and 2 %respectively, while the Asia/Pacific Region remained late, falling by 5 %, largely due to the weak feeling of consumers in China.
Digital activity grew by 7 %and wholesale of 3 %, although the brick retail sale saw a light dive of 1 %.
The gross margin remained stable at 62.9 percent in the second quarter, helped by supply efficiency and improved product costs. Operating expenses decreased by 3 %, reflecting a rigorous costs of costs through the sales, marketing and administrative functions.
In particular, sales and marketing costs decreased by 4 %, with marketing investments down 10 % on an annual basis in the second quarter, although largely due to timing shifts.
The net profit of the company increased by 28 % to € 50 million (~ $ 57.5 million), with profits per share (EPS) increasing by 27 % to € 0.68. Financial fees decreased by 27 %, benefiting from favorable currency developments.
Circulating net commercial capital (TNWC) remained stable to 839 million euros, although increasing 5 % correct in currency, due to an increase in inventories and commercial credits. This increase was a strategic move to mitigate tariff uncertainties. The TNWC ratio, based on a four -quarter mobile average, improved 19.7 percent from 21.2 percent last year.
“The second quarter (Q2) of 2025 was again marked by a demanding macroeconomic and industrial environment, with the global confidence of consumers who remain at low level. With this background, we have provided solid improvements in top and profits, supported by further efficiency increases through our rigorous and sustainable costs discipline”, he said Daniel Grieder, CEO (CEO) at Hugo Boss. “It is important to emphasize that we remain engaged in our long -term ambition to strengthen the brand’s relevance for short -term earnings. The successful launch of our Beckham X Boss collection in April is only an example of how we are continuing to guide the brand’s momentum, even in a volatile environment.”
For the whole year 2025, Hugo Boss expects sales of groups between 4.2 billion euros and 4.4 billion euros (-2 % per +2 percent) and EBIT between € 380 and 440 million euros, marking an increase expected from 5 to 22 %. The EBIT margin is foreseen between 9 % and 10 %.
Sales are expected to remain stable in the Emea and the Americas, while Asia/Pacific should attend a moderate decline. The capital expenses for the year are scheduled between € 200 million and € 250 million, lower than 286 million euros in 2024.
Despite the ongoing geopolitical and economic volatility, Hugo Boss aims to guide high quality growth by performing new brand campaigns and fashion shows in the second half of 2025, strengthening his global relevance and customer involvement.
“On the basis of our performance in the first half of 2025, we confirm our perspectives for the whole year for both sales and operational profit. While we enter the second half of the year, our goal remains on exciting consumers, unlocking further commercial opportunities and maintaining a coherent focus on a high quality growth. I am particularly enthusiastic about our next fall/winter 2025 collections and the launch of our new campaigns of Marci, which are this month, separated from further brands.
Fiber2fashion news desk (sg)