Hugo Boss has reported weak third quarter results, with group sales declining by 5 per cent amid ongoing company restructuring and macroeconomic challenges.
The luxury fashion brand’s EBIT decreased to approximately $90.7m, which was driven by a weaker demand within the consumer environment, according to the business.
Following the struggling performance, the business now updated its outlook and lowered its financial guidance for the full year.
Hugo Boss expects adjusted group sales to decrease in the high single-digit percentage range.
The company forecasted an EBIT within the range of between approximately $279.9m and $335.8m.
According to the business, the update comes amid ongoing market uncertainty and softer customer demand as well as investment in AI and technology developments.
Additionally, the brand’s free cash flow is now forecasted to remain below the originally anticipated level.
Daniel Grieder, CEO of Hugo Boss said: “In the third quarter, our top-line performance reflected both the deliberate strategic realignment of our business and a persistently subdued consumer environment.
“At the same time, we made further progress in improving our gross margin and operating efficiencies. With demand likely to remain volatile in the fourth quarter, we are adjusting our full-year 2026 outlook to reflect a more realistic assessment of the market environment. Our strategic direction, however, remains unchanged.
“We are convinced that Claim 5 Touchdown addresses the right priorities and lays the foundation for the next phase of Hugo Boss.
“While the full benefits of the related initiatives will take time to materialize and we recognize that there is still work ahead of us, they are fundamentally strengthening our business.”
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