Hugo Boss warned on Thursday of a further weakening in consumer confidence in the United States and China, sending its shares down as much as 5 percent, as the upmarket fashion label forecast 2025 sales broadly in line with last year’s level.
The company is the latest to warn about slowing consumer demand amid potential damage from US President Donald Trump’s trade wars.
Hugo Boss is closely monitoring developments in tariff policy, CEO Daniel Grieder said on a call with journalists, adding it was too early to quantify the potential impact on business.
The group has reduced the share of its global sourcing and production volume from China in recent years to 7 percent from more than 20 percent a few years ago, its annual report shows.
Grieder flagged risks to the business from uncertainties in China and the US, as well as global trade tensions, saying a hit to demand was already visible in the current quarter.
“We expect a muted first quarter performance, trending somewhat below our full-year top-line guidance range,” he added.
Hugo Boss forecast annual sales of 4.2 billion to 4.4 billion euros ($4.57 billion to $4.79 billion), equivalent to between a 2 percent fall and a 2 percent rise, following 3 percent growth to 4.3 billion euros in 2024.
After an initial rise, the company’s shares dropped as much as 5 percent following the management’s downbeat comments. The stock was again in positive territory at 10:02 GMT.
Hugo Boss has sought to boost the popularity of its brand through selected marketing investments, while increasing profits by limiting costs, despite weakening consumer demand.
It expects full-year earnings before interest and taxes to rise between 5 percent and 22 percent to 380 million to 440 million euros, compared to a 12 percent decline to 361 million euros last year.
Grieder said the company’s targets to reach 5 billion euros in revenue and a 12 percent EBIT were doable, but declined to give a timeline.
By Linda Pasquini and Isabel Demetz. Editing by Milla Nissi and Mark Potter
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Hugo Boss Sees Broadly Stable 2025 Sales, Flags Muted Demand in First Quarter
The company pointed to ongoing headwinds from macroeconomic and geopolitical uncertainty that have affected business performance since the start of the year.
