Hugo Boss has two shops in Luxembourg, but the brand’s products can also be found at Bram in the City Concorde shopping centre in Bertrange. Photo: Matic Zorman/Archives

Hugo Boss has two shops in Luxembourg, but the brand’s products can also be found at Bram in the City Concorde shopping centre in Bertrange. Photo: Matic Zorman/Archives

Despite sales growth of 3% in 2024, exceeding €4.3bn for the first time, Hugo Boss saw its profitability fall, with net profit down 17%. A slowdown in demand in China is weighing on the German company’s accounts, and it is adopting a cautious stance for 2025.

Last year was a mixed bag for Hugo Boss.

Buoyed in particular by a strong end to the year (+6%), the German company recorded a sales bump of 3% compared to 2023, up to €4.3bn. Its leading brand, Boss, saw 2% growth in its men’s line (up to €3.33bn) and 3% in its women’s (€297m). The Hugo line, meanwhile, recorded an increase of 4% (up to €682m), confirming the appeal of its collections.

And yet this commercial success is not reflected in the accounts: operating profits fell by 12% to €361m and net profits plunged by 17% to €224m.

Why? A clear slowdown in demand on the Chinese market, largely. While sales in the EMEA region (Europe, Middle East and Africa) rose by 2% to around €2.62bn, and in the Americas by 7% to €1.02bn, business in the Asia-Pacific region was less than satisfactory. Due to weak demand, sales in this region fell by 4% to €553m.

Cautious outlook

 “Since the launch of ‘Claim 5’ in 2021, we have made significant progress on our strategic journey and delivered above-trend growth,” said Hugo Boss CEO Daniel Grieder in a press release on 13 March 2025. “Yet, the macroeconomic challenges intensified in 2024 and led to a sharp industry slowdown. We therefore focused even more on customer centricity and on our most impactful initiatives. From welcoming David Beckham for a multi-year partnership with Boss to unveiling our new denim line Hugo Blue and launching our new customer loyalty program Hubo Boss XP, we kept customers inspired and engaged throughout the year.”

“Macroeconomic and geopolitical volatility remains high,” Grieder continues, justifying why management is taking a cautious approach in 2025. The group expects sales to remain stable at between €4.2bn and €4.4bn, though foresees improvements in profitability. According to estimates in press release, operating profits should be between €380m and €440m, an increase of 5%-22% compared to 2024. “This balanced approach will help us drive profitability and create shareholder value in 2025 and beyond,” the group concludes.

This article in French.

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