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)

In the first nine months of 2025, Lenzing AG recorded revenue growth and higher EBITDA, but a market-driven volatile third quarter. This performance reflects the effects of ongoing market volatility, tariffs and geopolitical uncertainties. Nevertheless, the medium to long-term outlook remains positive.

Lenzing AG’s revenue rose 0.7 per cent to €1.97 billion (~$2.27 billion) in the first nine months of 2025.
EBITDA grew 29.1 per cent to €340.4 million (~$391.5 million) amid market volatility.
The company is optimising operations, investing over €100 million (~$115 million) in Austrian sites, and reviewing its Indonesia plant to save €45 million (~$51.8 million) annually by 2027.

The revenue generated by Lenzing AG rose by 0.7 percent to EUR 1.97 bn (prior-year period: EUR 1.96 bn) in the first nine months. EBITDA grew by 29.1 percent to EUR 340.4 mn (prior-year period: EUR 263.7 mn), including effects from the sale of surplus emission allowances and the valuation of biological assets. The EBITDA margin improved to 17.3 percent (prior-year period: 13.5 percent). Earnings before interest and tax (EBIT) amounted to EUR 20.6 mn (prior-year period: EUR 38.3 mn), which corresponds to an EBIT margin of 1 percent (prior-year period: 2 percent). This result includes asset impairments of EUR 82.1 mn in Indonesia. Earnings before tax (EBT) amounted to EUR minus 98.7 mn (prior-year period: EUR minus 33.4 mn).

“We see these challenging times also as an opportunity. We are increasingly building on our strengths and are continuing to focus on what we excel at: strong brands, precise execution and bold innovation,” notes Rohit Aggarwal, CEO of Lenzing AG.

Strategic development

Lenzing AG pursues a holistically adapted strategy with a clear focus on value-generating growth. Key pillars of this strategy include enhancing operational efficiency, optimizing production sites, and targeting high-margin premium products such as TENCEL, VEOCEL, and LENZING ECOVERO. Additional growth potential is expected particularly in the fields of hygiene, packaging, filtration, as well as medical and industrial applications.

To sustainably secure this growth and strengthen long-term competitiveness, the company has initiated a strategic review of its production site in Indonesia. The planned measures – including adjustments to administrative functions – are expected to generate additional annual savings of approximately EUR 45 mn by the end of 2027. For the current reporting year, the Management Board anticipates cost savings exceeding EUR 180 mn. Furthermore, the company is investing over EUR 100 mn in its sites in Lenzing and Heiligenkreuz and aims to achieve holistic energy optimization of more than 5 percent across all production locations. Strategic options for the site in Indonesia are being evaluated, including a potential sale.

The Supervisory Board also made personnel decisions during the reporting period: The Managing Board mandate of Christian Skilich, Chief Pulp & Chief Technology Officer, was extended until May 2029. Mathias Breuer, currently Senior Vice President and responsible for the performance program, will become CFO from January 1, 2026, and succeed Nico Reiner, who is due to step down from his position at the end of 2025.

Solid financial position in a difficult environment

Thanks to its strong focus on cash management, Lenzing succeeded in leaving no doubt about its adequate liquidity position during the reporting period. As of September 30, 2025, the company held liquidity cushion of EUR 993 mn. The capital structure was strengthened by a EUR 500 mn hybrid bond and a EUR 545 mn syndicated financing facility. Net financial debt was reduced by 8.5 per cent to EUR 1.4 bn as of the reporting date. With total assets of EUR 4.80 bn, this corresponds to an adjusted equity ratio of 30.7% as of September 30, 2025.

Cash flow from operating activities amounted to EUR 284.6 mn (prior-year period: EUR 319.4 mn). Free cash flow was also positive at EUR 110.9 mn. (prior-year period: EUR 194.0 mn) Furthermore, unlevered free cash flow amounted to EUR 192.1 mn (prior-year period: EUR 228.6 mn).

Capital expenditure amounted to EUR 93.2 mn (prior-year period: EUR 93.3 mn).

Outlook

The global environment remains volatile. The International Monetary Fund (IMF) expects growth of 3.2 percent in 2025, but warns of trade conflicts and financial instability. Consumer sentiment is subdued, and higher tariff costs could further weigh on demand in 2026. Based on the business performance to date and the current market outlook, the Managing Board expects year-on-year growth in EBITDA in 2025. The actual business performance may nevertheless diverge from current expectations depending on geopolitical and economic factors as well as the cyclical nature of the industry. Any assessment of economic development is therefore subject to forecasting risks.

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 (HU)

American sports equipment company Brooks Running has achieved its ninth consecutive quarter of year-over-year (YoY) growth, increasing revenue by 17 per cent in the third quarter (Q3) of fiscal 2025 (FY25) as all regions and channels delivered double-digit gains.

The company accelerated global expansion efforts, growing year-to-date (YTD) revenue by 23 per cent in Europe, Middle East, and Africa (EMEA) and 82 per cent in Asia Pacific and Latin America (APLA) over the same horizon last year. Brooks’ unwavering focus on runners continues to strengthen its position on the global stage as the running category expands worldwide.

Brooks Running has posted its ninth straight quarter of YoY growth, with Q3 FY25 revenue up 17 per cent, fuelled by double-digit gains across all regions and channels.
EMEA revenue rose 23 per cent and APLA 82 per cent year-to-date.
Strong footwear demand, immersive brand activations, and product launches such as Cascadia Elite boosted performance and market share globally.

The global running market continued to grow in Q3, driven by strong demand for performance running footwear. In the US, where adult performance running footwear increased 13 per cent in Q3, the company achieved highest market share at national retail, Brooks Running said in a press release.

YTD through Q3, Brooks held three of the top six adult performance footwear styles sold at US national retail. In France and Germany, where in Q3 performance running footwear grew 9 per cent and 23 per cent, respectively, Brooks outpaced both markets with 15 per cent growth in France and 29 per cent growth in Germany.

“Our entire global team wakes up every day thinking about the runner—how they move, what they feel, the experience they desire and expect from their Brooks gear,” said Dan Sheridan, CEO of Brooks Running. “I am super proud of the way Brooks is executing, even against a backdrop of continued economic impacts and uncertainty. More people around the world are running and choosing an active lifestyle and Brooks is central to their health and wellness goals.”

In Q3, Brooks launched five footwear styles in three core performance categories—cushion, trail, and speed—fuelling a 17 per cent growth in YoY footwear revenue. The brand also previewed the all-new Cascadia Elite, a shoe that’s helped propel Brooks’ elite trail athletes to 12 first place finishes and 30 podiums this season. Core franchises continued to post gains with Adrenaline GTS up 20 per cent and Glycerin up 29 per cent while full-price products grew 21 per cent.

Through its ongoing relationship with runDisney, Brooks launched limited-edition product at the Disneyland Halloween Half Marathon Weekend in September.

From the Brooks House of Mountains at Ultra-Trail du Mont-Blanc (UTMB) in Chamonix to the Brooks Hyperion Houseboat at the TCS Sydney Marathon, Brooks brought its unique energy to the global running community in Q3 through a series of immersive brand experiences at iconic running events.

In Tokyo and Berlin, Brooks opened its signature Hyperion Houses where runners could try on new products and experience the brand in real life, added the release.

Fibre2Fashion News Desk (SG)