Hugo Boss cuts its 2026 outlook, citing weak demand and higher AI costs

Hugo Boss lowered its sales and profit forecasts on Tuesday, citing weaker consumer demand, market uncertainty and higher spending on artificial intelligence and technology, Bloomberg reported via The Business of Fashion.

New targets

• Earnings before interest and taxes (EBIT) are now expected at €250–300 million, compared with a previous range that reached as high as €350 million.
• Currency-adjusted sales are expected to fall by a high single-digit percentage this year, versus a previous forecast of a mid- to high single-digit decline.

The shares fell 1.7% in early trading in Frankfurt; they had gained 7.3% this year through Monday’s close.

A second turnaround

Chief executive Daniel Grieder, who is leading the company’s second turnaround attempt, called the new targets a “more realistic assessment of the market environment”. He said he remains committed to his reset plan: slimmer collections, some store closures, more full-price sales and tighter distribution through wholesale partners. The brand has been hit by US tariffs, soft demand in China and persistent weakness in womenswear.

RBC Europe analyst Manjari Dhar said Boss had over-distributed through wholesale, hurting margins, and that 2026 is likely to be “a year of readjustment”. Frasers Group, the British retailer controlled by Mike Ashley, took a controlling stake in Hugo Boss in October.