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Investing.com -- Hugo Boss (ETR:BOSSn) reported a modest operating profit beat for the second quarter, supported by cost-saving efforts that helped offset currency headwinds.
Earnings before interest and taxes (EBIT) rose 15% year-on-year to €81 million, above the €77 million expected by analysts in a company-compiled consensus. This lifted the EBIT margin by 120 basis points to 8.1%.
Revenue rose 1% in constant currency, but declined 1% to €1 billion when translated into euros, reflecting the impact of a stronger euro.
Gross margin for the quarter climbed 2bps to 62.9%, matching the analyst forecasts.
Earnings per share (EPS) rose 27% in the second quarter, driven by an improved financial result.
Regionally, performance was mixed. EMEA and the Americas both returned to growth, up 3% and 2% respectively, while Asia/Pacific declined 5% amid subdued consumer sentiment in China.
"BOSS today delivers a 5% beat to consensus Q2 EBIT, driven by a strong EMEA/ Americas performance, weaker APAC, in-line gross margin, and once again very good opex control," Jefferies analysts led by Frederick Wild said in a note.
They believe investor focus will likely shift to the 10 a.m. earnings call, given the absence of commentary on current trading in Hugo Boss’ release. With comparatives becoming more difficult in the third quarter, hitting the +2% consensus for Q3 would require a notable acceleration in July, analysts said.
Still, they noted that “BOSS’s overachievement on cost discipline is becoming a material defensive boost at a time of heightened tariff/macro uncertainty.”
Hugo Boss maintained its full-year sales and profit guidance, but lowered its outlook for reported sales in the Americas, now expecting flat growth versus its earlier view for a low single-digit increase, citing the impact of a weaker U.S. dollar.
“The second quarter of 2025 was once again marked by a challenging macroeconomic and industry environment, with global consumer confidence remaining at a low level," said Daniel Grieder, CEO of Hugo Boss.
"Against this backdrop, we delivered solid top- and bottom-line improvements, supported by further efficiency gains through our rigorous and sustainable cost discipline."