A Hugo Boss store in Berlin, Germany, on Tuesday, April 25, 2023.
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Shares of Hugo Boss jumped on Tuesday after it posted a lower-than-feared decline in first-quarter sales and reiterated its full-year guidance despite macroeconomic and tariff uncertainty.
The high-end German retailer said revenues fell 2% on a currency adjusted basis over the three month period to 999 million euros ($1.13 billion), slightly ahead of the 979 million euros forecast by analysts in an LSEG poll.
Shares rose as much as 8.8% on the news. The stock was last seen trading up 5.3% at around 9:33 a.m. London time.
Weaker sales were led primarily by soft demand in the Asia-Pacific region, and specifically “ongoing subdued consumer demand in China,” which the company attributed to a more uncertain consumer outlook.
“Following a strong finish to 2024, our performance in the first quarter of 2025 was affected by the rising macroeconomic uncertainty, which impacted global consumer sentiment and our industry,” CEO Daniel Grieder said in a statement.
The group nevertheless confirmed its 2025 outlook, forecasting full-year sales to be in line with last year’s at between 4.2 billion euros and 4.4 billion euros.
It added that it is continuing to monitor the economic outlook, after Grieder noted in March that global trade tensions had already had a visible impact on first-quarter demand.
“We are closely monitoring macroeconomic developments and remain vigilant in light of the elevated uncertainties, including the current tariff discussions,” he added.
Consumer goods companies have been assessing the potentially disruptive impact of U.S. tariffs on global supply chains and consumer confidence, with several firms flagging the likelihood of forthcoming price hikes.
Grieder told a conference call Tuesday that consumer confidence in the U.S. “has certainly diminished” but that the situation was changing daily and that it would respond “actively but also flexibly to the given circumstances,” according to Reuters.
In a note Tuesday, Citi analysts wrote that any “major change in the external political or economic environment” that directly or indirectly affects consumer confidence would pose a “risk” to Hugo Boss’ sales performance.
Hugo Boss has been pushing ahead with its strategic overhaul agenda in recent years under the leadership of Grieder as it seeks to revive waning consumer demand, which it said contributed to its slightly improved performance.
Yanmei Tang, analyst at Third Bridge, said the group had successfully expanded its appeal beyond formal wear, pointing to improvements in store formats, product diversification and engagement with younger consumers.
“However, areas like womenswear remain a weak spot, with no standout products or a clear strategy emerging,” she wrote in a note, adding that acquisition of an established female fashion brand could help accelerate the group’s growth agenda.
This is a developing story. Please check back for updates.
