Hugo Boss beats annual profit estimates, says no impact yet from Middle East conflict
German fashion group Hugo Boss has reported better-than-expected annual operating profit, despite a challenging market environment, and said it had not yet seen an impact from the Middle East conflict.
The company reported earnings before interest and taxes (EBIT) of €391m for 2025, up from €361m a year earlier, and above analysts' average forecast of €379m in a company-provided poll.
Shares in the company, which are up 1.3% since the start of the year including today's session, rose 4% in early trading, tracking for their best day since July 2025.
Hugo Boss confirmed its full-year outlook for 2026, which was announced in December last year.
"2025 once again highlighted the rapid transformation of our industry, shaped by technological innovation, evolving consumer preferences and ongoing macroeconomic and geopolitical uncertainty," chief executive Daniel Grieder said in a statement.
Grieder added that 2026 will be a year of targeted brand and channel realignment for the company, which will temporarily impact top- and bottom-line development.
Hugo Boss launched a new strategy in December last year, aiming to strengthen the brand by improving stores, focusing on high growth categories like shoes and accessories, and developing its womenswear range.
Luxury groups have been struggling with tighter consumer spending, with the sector hit by slowing demand for fashion and accessories particularly in the US and China.
Asked about the conflict in the Middle East, Grieder told reporters that the company has not yet seen any impact.
"If there are, we are going to adapt our business to the new situation," he said.
The widening Middle East war has sent global markets into a tailspin and significantly dampened investors' economic optimism on fears the conflict will create an oil price shock, raising inflation and delaying interest rate cuts.
