A Hugo Boss store in Berlin, Germany, Tuesday April 25, 2023.
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Actions of Hugo Boss Leapped on Tuesday after posting a lower drop than that of first quarter sales and reiterated its directives in full year despite macroeconomic and tariff uncertainty.
The high -end German retailer said that revenues dropped by 2% based on the currency over the period from three months to 999 million euros ($ 1.13 billion), slightly ahead of the 979 million euros provided by analysts of an LSEG survey.
Actions increased up to 8.8% on news. The title was last saw 5.3% around 9:33 am London time.
Lower sales were mainly conducted on demand smoothly in the Asia-Pacific region, and in particular the “request for moderate consumption in progress in China”, which the company has attributed to more uncertain consumption prospects.
“After a solid finish until 2024, our performance in the first quarter of 2025 was affected by increasing macroeconomic uncertainty, which had an impact on the global feeling of consumers and our industry,” CEG Daniel Grieder said in a press release.
The group nevertheless confirmed its prospects of 2025, providing that annual sales were in accordance with that of last year between 4.2 billion euros and 4.4 billion euros.
He added that he continues to monitor economic prospects, after Grieder noted in March that global trade tensions had already had a visible impact at the first quarter demand.
“We closely monitor macroeconomic developments and remain vigilant in the light of high uncertainties, including current pricing discussions,” he added.
Consumer goods companies have evaluated the potentially disruptive impact of American prices on global supply chains and consumer confidence, several companies reporting the probability of upcoming price increases.
Grieder told a conference on Tuesday that consumer confidence in the United States “had certainly decreased” but that the situation changed daily and that it would respond “actively but also flexible to the given circumstances”, according to Reuters.
On Tuesday, in a note, Citi analysts wrote that any “major change in the external political or economic environment” which directly or indirectly affects consumer confidence would have a “risk” for Hugo Boss of sales performance.
Hugo Boss has continued his strategic overhaul program in recent years while he is trying to relaunch the demand for divergence from consumers, who, according to Gryder, had contributed to his slightly improved performance in the first quarter.
Yanmei Tang, analyst at Third Bridge, said that the group had managed to extend its appeal beyond formal wear, pointing improvements in store formats, diversification of products and engagement with the youngest consumers.
“However, areas like women's clothing remains a weak point, without out-of-competition products or a clear emerging strategy,” she wrote in a note, adding that the acquisition of a established female brand could help accelerate the group's growth program.
