Hugo Boss shares fall on weak 2026 outlook
Hugo Boss shares plunged 11% on Wednesday after the German fashion brand warned that sales and profits are set to decline in 2026 as it begins a major strategic overhaul.
The company said currency-adjusted sales could drop by a mid- to high-single-digit percentage next year, while operating profit is now expected between €300 million and €350 million ($408 million). This comes amid declining demand in Europe, the Middle East, Africa, and Asia Pacific, particularly in the UK and China, News.Az reports, citing Reuters.
CEO Daniel Grieder said the company is refocusing its operations, streamlining its product range, and strengthening its brand to ensure sustainable, profitable growth. Trade barriers and cautious consumer spending were cited as key challenges.
Hugo Boss plans to enhance its stores, target high-growth categories like shoes and accessories, and expand its womenswear line. Chief Sales Officer Oliver Timm called womenswear “the single biggest opportunity” to drive growth and profitability.
Despite cost-cutting efforts in the supply chain and planned price increases, no layoffs are expected. The company projects sales to return to growth in 2027, with stronger momentum in 2028. A full outlook for 2026 will be provided in March alongside the annual results.
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