Hugo Boss, a German fashion group, reported better-than-expected quarterly revenue on Tuesday. They also maintained their full-year forecast despite increased macroeconomic uncertainties.
The company posted first-quarter revenue of 999 million euros ($1.13 billion). This was slightly below the 1.01 billion euros from the previous year, but above analysts’ forecast of 974 million euros. The forecast was from a company-provided poll.
They expect 2025 group sales to remain broadly in line with the prior year. Sales are expected to range “between 4.2 billion and 4.4 billion euros.”
Hugo Boss’ shares rose 4.5% in early Frankfurt trade.
The premium fashion retailer said subdued global consumer sentiment continues to weigh on the sector. This is “due to uncertainty over U.S. tariffs.”
“Benefiting from a well-diversified sourcing structure, the company is carefully evaluating potential measures based on currently available information and remains prepared to respond with agility to any potential further changes in trade policy.”
U.S. President Donald Trump’s sweeping tariffs and uncertainty over his trade policies sent global markets into a tailspin. They also significantly dampened investor optimism.
“Following a strong finish to 2024, our performance in the first quarter was affected by the rising macroeconomic uncertainty, which impacted global consumer sentiment and our industry,” CEO Daniel Grieder said. “Against this backdrop, we continued to place strong emphasis on what we have in our control.”
Luxury groups have struggled with tighter consumer spending. This is due to slowing demand for fashion and accessories, particularly in the U.S. and China.
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