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Hugo Boss reports lower sales but higher profit in second quarter
Second-quarter EBIT fell to €59 million from €81 million a year earlier, but gross margin rose 200 basis points to 64.9% as sourcing efficiencies and pricing helped offset softer demand.
Hugo Boss reported second-quarter EBIT of €59 million, down from €81 million a year ago, while currency-adjusted sales declined 9% to €905 million. The company said EBIT also came in above analysts' expectations of €52 million.
In the regional breakdown, Europe remained the weak spot, with sales down 13% to €532 million amid softer demand across markets including Germany, the UK, and France. The Americas fell 1%, while Asia-Pacific dropped 5%.
Hugo Boss highlighted margin improvement, with gross margin rising 200 basis points to 64.9% driven by sourcing efficiencies, firmer pricing, and more full-price selling. Operating expenses were also down 4%, and free cash flow before leases totaled €105 million, alongside inventories ending the quarter 15% lower year over year.
The company did not change guidance, keeping currency-adjusted sales expected to decline in a mid- to high-single-digit percentage range and EBIT between €300 million and €350 million. It also reiterated that shareholders have until August 13 regarding Frasers' €38-a-share offer, which Hugo Boss says is too low.