In This Article:
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Revenue: Group sales reached nearly EUR 1 billion, limited to a 2% decline.
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EBIT: EUR 61 million, with a 12% decline, resulting in an EBIT margin of 6.1%.
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Gross Margin: Stable at 61.4%.
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Operating Expenses: Flat year over year.
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Marketing Investments: Increased by 3%, amounting to 7.9% of sales.
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EBITDA Margin: Stable at 15.2%.
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Earnings Per Share: EUR 0.51, down 8% from the prior year period.
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Free Cash Flow: Minus EUR 66 million in Q1.
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Inventory: Increased by 5% year over year, standing at 25.1% of sales.
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Digital Sales: Up 4%, driven by partner revenues.
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Brick-and-Mortar Retail: Declined by 4%.
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Wholesale Revenue: Declined by 3%, with total wholesale showing solid growth.
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Regional Performance: EMEA sales declined by 1%, Americas down 1%, Asia Pacific down 8%.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hugo Boss AG (BOSSY) exceeded market expectations on both revenues and earnings, showcasing the strength and resilience of its business model.
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The company maintained a stable gross margin of 61.4% in Q1 2025, supported by efficiency gains in sourcing and reduced air freight share.
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Hugo Boss AG's strategic partnership with David Beckham has generated strong media reach and strengthened brand appeal, contributing to above-average sales through rates.
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Digital sales increased by 4%, driven by revenues generated with partners, indicating a robust online presence.
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The company has a globally diversified sourcing structure, reducing dependency on China and enhancing supply chain resilience.
Negative Points
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Revenues in the Asia Pacific region declined by 8%, with subdued consumer confidence in China impacting demand.
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Brick-and-mortar retail sales declined by 4% due to reduced mall and store traffic, particularly in the US and China.
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The company's EBIT declined by 12% to EUR61 million, with an EBIT margin down 70 basis points to 6.1%.
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Free cash flow was negative at minus EUR66 million in Q1, reflecting lower EBIT and higher inventory positions.
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The macroeconomic environment remains uncertain, with geopolitical tensions and trade restrictions posing significant challenges.
Q & A Highlights
Q: Can you provide insights on top-line trends in April and the impact of Easter timing on wholesale shipments? A: We don't comment on monthly performance in detail, but trends deteriorated in February and improved in March across all channels. We are operating in a volatile environment but remain in line with our guidance. Regarding OpEx, we focus on sustainable cost efficiencies, and flat OpEx in Q1 reflects structural discipline. We expect to maintain this trend despite a tougher comparison base in H2.