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 5.13% at around 10:30 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.
Navigating U.S. tariffs
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.
The U.S. is Hugo Boss’ largest single market, accounting for approximately 15% of group revenues, though it has no domestic U.S. manufacturing. Almost half (40%) of the group’s exports to the U.S. derive from Europe, while a “mid-single-digit percentage” of goods are sourced from China, Grieder told an earnings call on Tuesday.
The CEO said that consumer confidence in the U.S. “has certainly diminished” but that the situation around tariffs was changing daily and that it was “still too early to draw final conclusions.” He also noted that uncertainty around U.S. recession risks and immigration policy had dampened both domestic and tourist spend.
Grieder said the company is pursuing several strategic steps to navigate the potential impact of tariffs. Those include the redirecting of products coming from China to the U.S. and replacement with products from other markets, optimizing its global sourcing footprint and evaluating demand-sensitive price adjustments.
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 as it seeks to revive waning consumer demand, which Grieder said had contributed to its slightly improved first quarter 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.
