Hugo Boss (BOSS) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered solid results, exceeding expectations despite macroeconomic headwinds and subdued consumer sentiment, particularly in China and the US.

• Strategic initiatives, including cost efficiency and consumer-centric brand campaigns like BOSS ONE Bodywear and Beckham x BOSS, supported performance and brand momentum.

• Digital business grew 4%, partially offsetting declines in brick-and-mortar retail (-4%) and wholesale (-3%).

• Gross margin remained stable at 61.4% as sourcing efficiencies offset adverse market effects.

• EBIT was EUR 61 million (down 12% year-over-year), with an EBIT margin of 6.1%.

Financial highlights

• Group sales reached EUR 999 million, down 2% currency-adjusted year-over-year.

• Net income attributable to shareholders was EUR 35 million, down 8% year-over-year; EPS at EUR 0.51.

• EBITDA margin stable at 15.2%.

• Free cash flow was negative EUR 66 million, impacted by higher inventories and normalization in trade payables.

• Capital expenditure for Q1 was EUR 33 million, down 29% year-over-year.

Outlook and guidance

• 2025 group sales expected to remain broadly stable (-2% to +2%), with guidance between EUR 4.2 and 4.4 billion.

• EBIT forecasted to increase to EUR 380–440 million, with an EBIT margin of 9–10%.

• Gross margin expected to improve, driven by sourcing efficiencies and reduced air freight.

• Capital expenditure forecasted at EUR 200–250 million for 2025.

• Macroeconomic volatility and tariff uncertainties expected to persist.