Hugo Boss has reduced its outlook for 2026 as part of its strategic overhaul.
The fashion retailer, which recently saw profit and sales decline in its third quarter, forecast that its EBIT would drop to between £263.8m (€300m) and £307.7m (€350m) in 2026.
The forecast placed it below its FY 2025 outlook of between £334.1m (€380m) and £386.8m (€440m) issued in November.
The brand’s update strategy moved on from its Claim 5 strategy launched in 2021 to Claim 5 Touchdown, focusing on brand, distribution and operational excellence.
The premium clothing business said it aimed to generate €300m (£262m) in free cash flow annually until 2028, despite its decline in EBIT.
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Hugo Boss forecasts currency-adjusted revenues to fall in mid-to high-single digits next year, “against the backdrop of deliberate brand and channel realignment,” before “returning to growth in 2027, and accelerating in 2028”.
The business seeks to increase its EBIT margin to around 12% during the long term.
Hugo Boss CEO Daniel Grieder said: “Since 2021, we have repositioned our company with Claim 5, creating a strong foundation for the future.
“We have refreshed our two brands and invested extensively in our organisational platform.”
He added: “Following the successes of recent years, we are now deliberately taking a step back to prepare for tomorrow’s growth.
“Our focus in the coming years will be on the ongoing optimisation in the areas of brand, distribution and operations, with the clear ambition to transform them from great to excellent.
“Next to strong cash generation, this will drive sustainable profitable growth and long-term value for our shareholders.”
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