Hugo Boss runs in Frankfurt: fourth quarter drives 2025 accounts

(Il Sole 24 Ore Radiocor) - Hugo Boss shone on the Frankfurt Stock Exchange thanks to the positive reception given to the 2025 accounts, despite the dividend cut, albeit 'sweetened' by a buy back. The 2026 guidance is also affected by the ongoing reorganisation phase.

Hugo Boss posted Ebit of EUR 391 million in 2025, compared to EUR 361 million in the previous year, exceeding analysts' expectations of EUR 379 million on average according to consensus estimates compiled by the company. Contributing to the result was a reduction in operating expenses, which fell by 4% in the fourth quarter and 3% for the year. turnover increased by 2% net of currency effects to EUR 4.3 billion, supported by solid growth in the fourth quarter (+7%). Higher sales in Europe (+9%) and the Americas (+6%) in the latter part of the year more than offset weakness in the Asia-Pacific region (-1%), particularly in China. The performance was mainly driven by mens' wear with the flagship brand Boss, while womenswear and the Hugo brand recorded declines.

The company highlighted the difficult environment in which it found itself operating: "The year 2025 once again highlighted the rapid transformation of our industry, shaped by technological innovation, evolving consumer preferences, and persistent macroeconomic and geopolitical uncertainty," commented CEO Daniel Grieder in a note. Ahead of a complex 2026, Hugo Boss announced that it will propose a dividend of EUR 0.04 per share, the statutory minimum, for the 2025 financial year, up from EUR 1.40 the previous year, 'to preserve financial flexibility'. As consolation for shareholders, traders note, the group has announced a share buyback programme of up to EUR 200 million.

For 2026, turnover, net of currency effects, is expected to decline by between 5% and 9%, and EBIT is expected to fall by between EUR 300 million and EUR 350 million, as 'improved gross margins and continued cost efficiencies should be more than offset by the lower sales' expected. The outlook for the current year stems from a strategic realignment of the group, announced by the board of directors last autumn. The group is aiming for a targeted refocusing of brands and distribution, in order to lay the foundation for sustainable and profitable growth. This includes a more selective distribution approach with targeted shop closures and a reduction of the product range. CEO Grieder explained that these measures certainly affect revenues and profits in the short term, but are a necessary step for long-term success.