Hugo Boss shares fell 11% on Wednesday after the German fashion house warned that both sales and profit would decline next year, marking a turbulent phase as the company embarks on a major strategic reset.
Just days after top shareholder Frasers withdrew its support for the company’s chairman, the group cut its operating profit forecast and said it now expects currency-adjusted sales to drop by a mid- to high-single-digit percentage in 2026.
The retailer, known for its menswear and growing casualwear lines, is refining its product assortment and streamlining operations following weakening sales across its Europe, Middle East and Africa region, as well as in Asia Pacific — pressures it attributed to softness in the UK and China.
Chief executive Daniel Grieder told reporters that “to ensure sustainable, profitable growth” the company would need to “refocus, simplify, and strengthen” its business to prepare for its next phase. He added that trade barriers and cautious consumer sentiment were weighing on performance.
Frasers, which owns 25% of Hugo Boss, has been pushing for changes at the top. The retailer said last week it no longer supports chairman Stephan Sturm, though Hugo Boss insisted Sturm remains committed to continuing in the role.
Unveiling its new strategy, Hugo Boss said it would look to bolster its brand by upgrading stores, expanding high-growth categories such as footwear and accessories, and accelerating the development of its womenswear line. Chief sales officer Oliver Timm said womenswear represented “the biggest single potential” for driving future growth and profitability.
The company now expects earnings before interest and tax (EBIT) of US $ 350 million to US $ 408 million in 2026. For the current year, it forecasts operating profit at the lower end of its US $ 443–US $ 513 million guidance range, citing “heightened macroeconomic volatility”.
As part of its turnaround efforts, Hugo Boss aims to reduce supply chain costs and implement selective price increases, though Grieder said the company does not plan to cut jobs. It expects sales to return to growth in 2027 and accelerate further in 2028, with a detailed 2026 outlook to be presented in March alongside full-year results.
