Hugo Boss downgrades FY sales and profit outlook

(Sharecast News) - German fashion brand Hugo Boss downgraded its full-year guidance for sales and profit on Tuesday as it pointed to softer demand.

The company now expects earnings before interest and tax of �250m to �300m, down from previous guidance of �300m to �350m. It also said sales are now expected to decline in the high single-digit percentage range, having previously guided to a mid to high single-digit drop.

Hugo Boss said "the updated outlook reflects higher non-cash D&A expenses for IT assets in light of rapidly evolving AI and technology developments, as well as softer demand assumptions for Q4 amid elevated market uncertainty".

For the third quarter, it reported a 4% decline in group sales to �946m, amid ongoing strategic realignment and macroeconomic headwinds. EBIT fell to �81m from �95m in the same quarter a year earlier.

Chief executive Daniel Grieder said: "In the third quarter, our top-line performance reflected both the deliberate strategic realignment of our business and a persistently subdued consumer environment. At the same time, we made further progress in improving our gross margin and operating efficiencies. With demand likely to remain volatile in the fourth quarter, we are adjusting our full-year 2026 outlook to reflect a more realistic assessment of the market environment.

"Our strategic direction, however, remains unchanged. We are convinced that Claim 5 Touchdown addresses the right priorities and lays the foundation for the next phase of Hugo Boss. While the full benefits of the related initiatives will take time to materialise and we recognise that there is still work ahead of us, they are fundamentally strengthening our business. We remain focused on the long term: building a more resilient, more profitable Hugo Boss and creating sustainable value for our shareholders."

At 0920 GMT, the shares were 0.7% lower at �38.67.