Hugo Boss Misses 2025 Targets; Shares Fall 5%

Despite this marginal beat, the company announced it would not achieve its ambitious 2025 revenue and profit growth targets, a delay it had hinted at in March. This news sent shares down 5 percent to €40.85.

The luxury fashion brand's gross margin also softened to 60.2 percent from 60.7 percent a year prior, falling short of analyst expectations, primarily due to increased global freight rates and widespread industry discounting driven by tepid consumer demand. CFO Yves Mueller noted that consumers now expect discounts.

While currency-adjusted sales rose a modest 1 percent to €1.029 billion, performance varied geographically, with Asia-Pacific sales (particularly China) falling 7 percent, while Europe, Middle East, Africa, and the Americas saw slight increases. Hugo Boss is intensifying cost control efforts, especially in sourcing, to bolster profitability into the fourth quarter and maintained its full-year forecasts.