Connect with us

Fashion

Germany’s Hugo Boss lifts profitability despite 1% dip in Q3 sales

Published

on

Germany’s Hugo Boss lifts profitability despite 1% dip in Q3 sales



German fashion house Hugo Boss has reported a 1 per cent year-over-year (YoY) decline in sales in the third quarter (Q3) of 2025 (YTD: –1 per cent) on a currency-adjusted basis, yet delivered improved profitability driven by efficiency gains, stringent cost control, and optimised sourcing strategies.

The gross margin of the company rose 100 basis points (bps) to 61.2 per cent, reflecting lower freight costs and sourcing efficiencies, while operating expenses fell 3 per cent due to stringent cost management.

Hugo Boss has reported a 1 per cent YoY sales decline in Q3 2025 but achieved stronger profitability through cost control and sourcing efficiency.
Gross margin rose 100 bps to 61.2 per cent, while EBIT held steady at €95 million (~$109.25 million) with a 9.6 per cent margin.
EPS increased 7 per cent, and free cash flow 63 per cent.
The company reaffirmed its FY25 guidance amid currency headwinds.

Operating profit (EBIT) remained broadly stable at €95 million (~$109.25 million), translating to a 9.6 per cent EBIT margin, up 30 basis points YoY. Earnings per share (EPS) increased 7 per cent to €0.85, supported by stronger financial results and lower net expenses. Free cash flow rose 63 per cent, driven by improved CapEx efficiency, Hugo Boss said in a press release.

Regionally, Americas showed renewed momentum (+3 per cent), while EMEA declined slightly (–2 per cent), with gains in Germany and France offset by weaker UK sales. The Asia/Pacific region fell 4 per cent, mainly due to lower sales in China, though Southeast Asia and Japan showed modest improvement.

“Despite ongoing global market volatility in Q3, we remained focused on our strategic priorities, emphasising long-term brand strength over short-term gains,” said Daniel Grieder, CEO at Hugo Boss. “We achieved meaningful efficiency gains, delivering notable gross margin expansion and streamlined expenses. This is clear evidence of the operational excellence and resilience at the core of our business model. Accordingly, we confirm our 2025 top-and bottom-line guidance while remaining vigilant in navigating ongoing market uncertainties.”

“Our ‘CLAIM 5’ strategy has been pivotal in driving our growth and establishing a strong foundation for long-term success. With our two iconic brands, a robust business platform, and the passion and commitment of our global teams, we are well positioned to create lasting value for our shareholders,” added Grieder.

The Boss Menswear line remained stable YoY, supported by the Beckham X Boss collection launch and the Boss Spring/Summer 2026 Fashion Show in Milan, both of which significantly boosted brand engagement on social media.

By contrast, Boss Womenswear and Hugo reported sales declines of 9 per cent and 5 per cent, respectively, as the company continued to refine product assortments and streamline distribution.

Channel-wise, digital sales advanced 2 per cent, driven by growth on its official website and through digital partner channels. Brick-and-mortar retail remained flat but improved sequentially from Q2, while wholesale declined 5 per cent due to delivery timing, expected to reverse in Q4.

Marketing investments fell 8 per cent to €70 million as the company prioritised high-impact initiatives like the Milan Fashion Show. Administration expenses were 2 per cent lower, highlighting strict overhead control. The company’s trade net working capital rose 11 per cent to €909 million, reflecting higher inventories and reduced payables but remained below Q2 levels.

Hugo Boss reaffirmed its 2025 guidance, expecting group sales and EBIT at the lower end of the ranges due to persistent macroeconomic and currency headwinds. Full-year sales are projected between €4.2 billion and €4.4 billion, while EBIT is forecast between €380 million and €440 million.

The company expects to maintain its EBIT margin within 9-10 per cent, improve efficiency through sourcing and administrative optimisation, and limit capital expenditure to the lower end of €200–250 million.

Fibre2Fashion News Desk (SG)



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Fashion

DGFT reform unlocks $37 bn export boost for India trade growth

Published

on

DGFT reform unlocks  bn export boost for India trade growth



On March **, ****, India’s Directorate General of Foreign Trade (DGFT) issued Notification No. **/******, amending Para *.** of the Foreign Trade Policy and removing the long-standing ****;** lakh (about $**,***) per-consignment cap on courier exports. From April *, exporters can send consignments of any value through courier mode instead of splitting higher-value orders into smaller parcels.

For textiles and apparel, this is more than a procedural tweak. The sector is no longer driven only by large container-based orders from global retailers. It is increasingly shaped by samples, capsule drops, repeat orders, customised runs, premium home textiles, craft-led fashion, and direct-to-consumer cross-border fulfilment. In that world, courier flexibility matters.



Source link

Continue Reading

Fashion

US’ Reebok & GLDN PNT launch padel apparel collection

Published

on

US’ Reebok & GLDN PNT launch padel apparel collection



Reebok, the iconic and irreverent sports culture brand, and GLDN PNT, an activewear racquet sports brand born from the community of padel, are joining forces to launch a performance-driven apparel collection designed for athletes and enthusiasts.

Padel, one of the world’s fastest-growing sports, has seen an explosion of participation and fan engagement in recent years. Recognizing the sport’s surging popularity and vibrant community, Reebok is stepping onto the padel court through a collaboration with GLDN PNT—a brand born from and built for the padel movement.

Reebok has partnered with GLDN PNT to launch a performance-driven padel apparel collection, tapping into the sport’s rapid global growth.
The range includes technical tees, tanks, bras and shorts designed for modern players, combining innovation, functionality and style, while strengthening Reebok’s presence in the fast-expanding padel community.

The Reebok x GLDN PNT collection features a range of high-performance apparel, including the ID Train Short Sleeve Tech Tee, Speed Racer Tank, ID Performance Tech Tee, ID Train Tri Back Bra, and WOR 9 in Woven Short. Each piece is designed with the modern padel player in mind, blending innovative materials, functional design, and bold style.

“Padel is more than a sport—it’s a global movement, and we’re thrilled to partner with Reebok to raise the bar for padel apparel,” said Scott London, Founder of GLDN PNT. “Our mission has always been to celebrate the culture and community of padel, and this collaboration gives us the reach and resources to inspire even more players around the world. We’re making the moment count—on and off the court.”

For Reebok, this partnership represents an opportunity to join the padel community in a meaningful and authentic way.

“Padel’s incredible growth represents the kind of energy and passion that Reebok has championed for decades,” said SVP of Reebok, Daniel Schachne. “By collaborating with GLDN PNT, a brand deeply rooted in the sport, we’re excited to deliver innovative performance apparel to padel athletes everywhere and support the vibrant community driving the sport forward.”

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (RM)



Source link

Continue Reading

Fashion

India extends RoSCTL scheme till Sept 2026 to support apparel exports

Published

on

India extends RoSCTL scheme till Sept 2026 to support apparel exports



The Government of India has extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for exports of apparel, garments, and made-ups till September 30, 2026, or until it is approved under the next Finance Commission cycle, whichever is earlier.

The extension comes at a time when exporters are facing heightened pressure from geopolitical uncertainties, volatile demand, and rising logistics and input costs. By continuing the scheme, the government aims to provide stability and cost support to the labour-intensive apparel sector.

The extension of RoSCTL till September 30, 2026, or until the next Finance Commission approval, provides interim policy clarity amid global demand and cost pressures. Continued structure and rates support pricing competitiveness for apparel exporters.
However, its temporary nature signals a likely recalibration of export incentives in the upcoming policy cycle.

The scheme will continue without any change to its structure, coverage, rates, or eligibility criteria, ensuring policy continuity for exporters. Rebates will be provided through transferable duty credit scrips in a fully digital format, supporting ease of use and faster processing.

To maintain fiscal discipline, expenditure under the scheme will be reviewed on a quarterly basis by an inter-ministerial committee. The government has also retained the flexibility to revise rates and caps depending on evolving conditions, while keeping eligibility norms unchanged.

Effective April 1, 2026, the extension provides interim visibility to exporters as the government works towards finalising a longer-term framework under the upcoming Finance Commission period.

Fibre2Fashion News Desk (KUL)



Source link

Continue Reading

Trending