Hugo Boss has reduced its 2026 outlook, citing softer fourth-quarter (Q4) demand and higher non-cash depreciation and amortisation.
The company now expects currency-adjusted group sales to fall in the high single-digit percentage range, with earnings before interest and taxes (EBIT) forecast at €250m ($279.5m) to €300m.
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Its initial guidance had anticipated a mid- to high-single-digit sales decline and EBIT of €300m to €350m.
Capital expenditure is expected to represent 4% to 5% of sales, compared with an initial forecast of around 4%.
Hugo Boss CEO Daniel Grieder: “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.”
In Q3, currency-adjusted sales fell 5% while reported sales declined 4% to €946m from €989m in the third quarter of 2025.
Currency-adjusted sales decreased 3% for BOSS and 17% for HUGO.
Gross margin increased by 220 basis points to 63.3% while EBIT fell 15% to €81m, representing an 8.6% margin.
Net income attributable to shareholders declined 18% to €48m.
By region, currency-adjusted sales dropped 7% in Europe, the Middle East, and Africa, 3% in the Americas and 2% in Asia/Pacific.
By channel, currency-adjusted retail sales, including brick-and-mortar and self-managed digital touchpoints, fell 8%, mainly because of softer store traffic.
Comparable brick-and-mortar store sales declined 6% while net selling space decreased 4% year on year.
The update follows Frasers Group’s announcement late last month that it had secured majority control of Hugo Boss.
The UK-listed retail entity increased its direct stake to 50.08% for €7.63m ($8.55m).
Owned by billionaire Mike Ashley, Frasers Group used existing cash reserves to fund the purchase of an additional 198,666 shares.
According to the filing, the acquisition made the German fashion business a subsidiary within the group.
In the first nine months, currency-adjusted group sales fell 7%, with reported sales down 8% to €2.76bn, while EBIT declined 26% to €175m and net income attributable to shareholders fell 30% to €98m.
