Fashion Retailer Hugo Boss Posts Q1 Beat, Reiterates 2025 Outlook

FILED - 08 March 2022, Baden-Wuerttemberg, Metzingen: The logo of the Hugo Boss fashion group, is seen at an outlet store at the company headquarters in Metzingen. Photo: dpa

German fashion group Hugo Boss reported better-than-expected quarterly results on Tuesday and maintained its full-year forecast despite increased macroeconomic uncertainties.
The company posted first-quarter revenue of 999 million euros ($1.13 billion), slightly below the 1.01 billion euros a year earlier, but above analysts' forecast of 974 million euros, a company-provided poll showed.
Despite US tariff concerns, it said it expects 2025 group sales to remain broadly in line with the prior year, ranging between 4.2 billion euros and 4.4 billion euros.
Earnings before interest and taxes for the first quarter came in at 61 million euros, compared to analysts' expectations of 50 million euros in a company-provided poll, Reuters reported.
The premium fashion retailer's shares rose 8.4%, topping Germany's mid-cap index. They have, however, fallen 11.7% year-to-date.
"Although we note that the demand outlook remains uncertain, we are encouraged by a better performance in March vs January/February," RBC analysts said.
Hugo Boss said in a statement that subdued global consumer sentiment continues to weigh on the fashion sector due to over US tariff uncertainty.
RBC, however, believes the company appears well positioned to weather the potential impact of tariffs "given its well diversified sourcing exposure."
CEO Daniel Grieder in a conference call with journalists said "It's difficult to make a clear, conclusive assessment and the discussions suggest that consumer confidence in the US has certainly diminished, but I believe that can change every day, and we're prepared for that. We're trying to respond actively but also flexibly to the given circumstances."
Luxury groups have struggled with tighter consumer spending due to slowing demand for fashion and accessories, particularly in the US and China.