Group sales totalled €905 million, down 9% on a reported basis and 6% currency adjusted. The company attributed the decline to weaker consumer demand and the planned optimisation of its global distribution network.
By region, EMEA recorded the steepest decline, with sales down 8% currency adjusted, reflecting softer demand across key European markets. The Americas fell 5%, while Asia/Pacific returned to growth with a 1% increase, supported by improving momentum in China.
Gross margin improved by 110 basis points to 62.5%, driven by sourcing efficiencies and lower product costs. However, EBIT declined to €35 million from €61 million a year earlier, with the EBIT margin narrowing to 3.9% from 6.1%.
The company also strengthened its balance sheet during the quarter, reducing inventory by 13% and generating free cash flow before leases of €33 million, compared with an outflow of €66 million in the prior-year period.
Hugo Boss reaffirmed its full-year 2026 guidance, expecting currency-adjusted group sales to decline by a mid- to high-single-digit percentage and EBIT to be between €300 million and €350 million. The company said it remains focused on improving profitability and supporting long-term growth through its strategic transformation.
