Hugo Boss Reports 1.4% Sales Decline, Profit Up in First Half

Hugo Boss closes the first half of the year at two speeds. The German men’s fashion company closed the first six months of the current fiscal year with a slight drop in sales of up to 1.4%. The company’s profit, however, has returned to growth, after the decline recorded in the first quarter.

Specifically, the German company posted sales of up to €2 billion in the year to June, down from €2.02 billion in the same period a year ago. Gross profit fell at a similar rate to €1.24 billion, although the company maintained its gross margin at 62.1%.

Gross operating profit (ebitda) did register growth in the first half, up 2.8%, from €315 million in the first half of 2024 to €324 million in the current year. The ebitda margin also improved to 16.2%, up from 15.5% a year ago.

Hugo Boss has only increased its sales through the digital channel

By markets, the German company’s sales have suffered in most of the regions where it operates. The biggest drop was in Hugo Boss sales in Asia, where the company posted a turnover of €253 million, 7% less than in the first half of the previous year, while in the Americas the decline was 4%, to accumulate sales of €448 million.

In the Europe, Middle East and Africa region, Hugo Boss’ main market, the company did increase its turnover slightly, by 1%, to 1,249 million euros.

The evolution of sales by channel was also uneven, with only Internet sales being 5% higher than between January and June of a year ago, at €403 million. Both retail sales, down 4%, and wholesale business, down 1%, were down, to €1.01 billion and €532 million, respectively.