Shares slump as Hugo Boss cuts 2026 outlook
By Abigail Townsend
Date: Wednesday 03 Dec 2025
(Sharecast News) - Shares in Hugo Boss fell sharply on Wednesday, after the German fashion house slashed its outlook as part of a shake-up of the business.
Updating investors on strategy, Hugo Boss said it wanted to "realign, simplify and strengthen" the business.
Chief executive Daniel Grieder, who joined four years ago from Tommy Hilfiger, said: "Since 2021, we have repositioned our company, creating a strong foundation for the future.
"We have refreshed our two brands and invested extensively in our organisational platform.
"We are now deliberately taking a step back to prepare for tomorrow's growth."
Grieder said the new strategy - launched amid a "challenging market environment" - would pave the way for sustainable and profitable growth. However, in the short term, both sales and earnings are expected to be hit.
Group sales are now forecast to fall by mid-to-high single digits on a constant currency basis in 2026, with earnings before interest and tax coming in between €300m and €350m.
In 2024, Hugo Boss posted EBIT of €361m after group sales rose 3% to €4.3bn. It is currently forecasting sales of between €4.2bn and €4.4bn in 2025, and profits between €380m and €440m.
As at 1015 GMT, the Frankfurt-listed stock had shed 11%.
The overhaul will focus on improving the performance of Boss womenswear as well as the Hugo brand, introducing a more targeted distribution footprint and strengthening the supply chain.
It expects to return to growth from 2027.
Chief financial officer Yves Muller said: "2026 will be a year of consolidation and realignment and an important step toward positioning Hugo Boss for long-term profitable growth."
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