Although the reported income decreased 1 percent due to the adverse effects of the currency, the EBIT increased 15 percent to € 81 million (~ $ 93.15 million), raising the margin of Ebit in 120 basic points (BP) to 8.1 percent.
The head of Hugo of Germany has reported solid results of the second quarter of the second quarter of 2025, with sales adjusted by currency up to 1 percent to € 1,002 million (~ $ 1.16 million) and Ebit increasing 15 percent to € 81 million (~ $ 93.15 million). The growth was driven by the boss's male clothes and digital sales, compensating for decreases in Asia and other segments. The company reaffirmed its 2025 perspective, projecting sales between –2 % and +2 percent.
As for the brand, the male clothing chief remained the main growth driver of the company, with sales adjusted by currency up to 5 percent. In contrast, Chief and Hugo women's clothing decreased by 8 percent and 12 percent respectively, since the company makes strategic adjustments in these segments.
At the regional level, Europe, the Middle East and Africa (EMEA) and the Americas returned to the growth of 3 percent and 2 percent of increases respectively, while the Asia/Pacific region was delayed, 5 %, largely due to the weak feeling of consumption in China.
The digital business grew by 7 percent and wholesale in 3 percent, although the retail and mortar retail saw a slight 1 percent fall.
The gross margin remained stable at 62.9 percent in the second quarter, helped by the efficiency of obtaining and the costs of improved products. Operating expenses decreased by 3 percent, reflecting the strict cost discipline in the functions of sale, marketing and administrative.
In particular, the costs of sale and marketing fell 4 percent, with marketing investments fell by 10 percent year -on -year in the second quarter, although largely due to time changes.
The company's net income increased by € 50 million (~ $ 57.5 million), with profits per share (EPS) that increased by 27 percent to € 0.68. Financial expenses decreased 27 percent, benefiting from favorable currency developments.
The Net Commercial Working Capital (TNWC) remained stable at € 839 million, although it increased 5 percent adjusted to the currency, due to the increase in commercial inventories and accounts receivable. This increase was a strategic movement to mitigate tariff uncertainties. The TNWC ratio, based on a four -quarter mobile average, improved 19.7 percent of 21.2 percent last year.
“The second quarter (Q2) of 2025 was again marked by a challenging macroeconomic and industrial environment, with the global confidence of the consumer at a low level. In this context, we deliver solid improvements of high and lower, backed by greater efficiency gains through our rigorous and sustainable cost discipline,” he said, “he said,” he said Daniel Grieder, Executive Director (CEO) in Hugo Boss. “It is important to note that we continue to commit our long -term ambition to strengthen the relevance of the brand on short -term profits. The successful launch of our Beckham X Boss collection in April is only an example of how we continue to drive the impulse of the brand, even in a volatile environment.”
For full year 2025, Hugo Boss expects group sales between € 4.2 billion and € 4.4 billion (–2 % to +2 percent), and Ebit between € 380 million and € 440 million, marking a projected increase of 5 to 22 percent. Ebit's margin is forecast between 9 percent and 10 percent.
Sales are expected to remain stable in EMEA and America, while Asia/Pacific is expected to witness a moderate decrease. Capital expenditure for the year is projected between € 200 million and € 250 million, less than € 286 million in 2024.
Despite the continuous geopolitical and economic volatility, Hugo Boss aims to boost high quality growth by executing new brand campaigns and fashion parades in the second half of 2025, reinforcing its global relevance and commitment to the client.
“According to our performance in the first half of 2025, we confirm our perspective of the whole year for sales and operational profits. As we enter the second half of the year, our approach remains in exciting consumers, unlock additional commercial opportunities and maintain an approach consisting of high quality growth. I am particularly enthusiastic with our next autumn/winter 2025 collections month, which is more than Boost Band Reavence.
Fiber2Fashion News Desk (SG)
