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Hugo Boss Reports Q2 Sales Drop as Turnaround Plan Deepens

Improved margins and leaner inventories are strengthening cash flow as shareholders face a live €38-per-share takeover offer.

Overview

  • The company reported second-quarter group sales of €905 million, a roughly 9–10% year-on-year decline, and EBIT fell to €59 million with a 6.5% margin.
  • Hugo Boss confirmed full-year guidance for a mid- to high-single-digit sales decline and operating profit of €300–350 million.
  • Operational moves tied to the 'Claim 5/Touchdown' plan raised gross margin to about 64.9%, cut inventories and delivered strong free cash flow despite lower EBITDA.
  • Sales fell most sharply in Europe, the Middle East and Africa while the Americas were roughly flat and Asia Pacific declined; the Hugo and Boss womenswear assortments were the weakest categories.
  • Frasers Group’s €38-per-share offer remains open through Aug. 13, creating a near-term governance test for investors as management defends its repositioning and long-term profit targets.