Hugo Boss recorded a surprising profit increase in the first quarter, exceeding market expectations, supported by higher sales due to intensified marketing efforts. Despite a warning in March that slow consumer behavior and geopolitical uncertainties could slow growth this year and threaten the revenue target for 2025, the company was optimistic about the latest results.

On Thursday, the German fashion company reported that its cost-cutting measures and the brand overhaul contributed to the positive results of the quarter. The spring and summer collections, supported by two brand campaigns and increased marketing, were well received by both consumers and retailers.

The revenue rose to 1.01 billion euros, compared with 968 million euros in the previous year, and thus was slightly above the 1.005 billion euros forecasted by analysts, as evident from a consensus-based company report. Revenue increased in all regions.

The Net Profit Increased to 38 Million Euros Compared with 35 Million Euros in the Previous Year, Thus Exceeding the Consensus Expectations of 36 Million Euros. The Gross Profit Reached 623 Million Euros, an Increase of 5% Compared to the Previous Year, Driven by Cost Savings and Favorable Product and Freight Costs, Resulting in a Gross Profit Margin of 61%.

Operating Results Increased by 6% to 69 Million Euros, Which Also Exceeded the Consensus of 65 Million Euros.

Hugo Boss Confirms Full-Year Targets but Emphasizes Ongoing Caution Due to Persistently High Levels of Macroeconomic and Geopolitical Uncertainties, Which Are Expected to Continue Weighing on Global Consumer Behavior in Fiscal Year 2024.