Hugo Boss saw profits rise in its latest full year results amid its turnaround effort.

The retailer’s EBIT was up 8 per cent to £337.9m over the year, as it shot up 22 per cent over the fourth quarter.

Currency-adjusted sales increased 2 per cent during the year to £3.7bn, while Q4 revenues grew 7 per cent.

The German clothing specialist saw growth of 9 per cent and 2 per cent throughout Europe, the Middle East and Africa (EMEA) for its fourth quarter and full year respectively.

Additionally, it pulled in 6 per cent growth in the Americas for Q4 and 3 per cent growth for its full year.

Sales in its Asia Pacific region dropped 1 per cent and 5 per cent respectively for its fourth quarter and full year.

The company unveiled plans to return up to £172.9m of capital to shareholders through a new share buyback scheme until the end of 2027.

Looking forward, the business reaffirmed that its EBIT was expected to decline to a range of £263.8m and £307.7m in 2026, as its gross margin improvements and continued cost efficiencies were “more than offset by lower sales”.

Currency-adjusted group sales were forecast to fall “mid- to high-single digits” over the year, which it said reflected “initiated brand and channel realignment”.

Hugo Boss said 2026 would be a year of “deliberate realignment” under its Claim 5 Touchdown strategy, as it laid the foundation for “sustainable, profitable growth”.

Hugo Boss CEO Daniel Grieder said: “Beyond our financial performance, 2025 was a year in which we reassessed our strategic direction and successfully shaped Hugo Boss for the next chapter.

“With the launch of Claim 5 Touchdown, we introduced a clear strategic framework through 2028, to elevate brand equity and pave the way for sustainable, profitable growth and long-term shareholder value.”

He continued: “2026 will be a decisive year of targeted brand and channel realignment. 

“This includes a more targeted distribution approach to enhance productivity and quality across our global footprint, as well as more focused and elevated product assortments across brands.”

Commenting on the results, GlobalData apparel analyst Chloe Tedford-Jones added: “Hugo Boss met expectations with a modest 0.9 per cent decline in FY2025 group sales to €4.3bn as it streamlined its operations against the backdrop of its ‘Claim 5 Touchdown’ turnaround strategy. 

“Low consumer sentiment and unclear brand positioning hindered growth, although operating profit rose 8.3 per cent to €391m, indicating some returns from its recent change in strategy. 

“Hugo Boss remains cautious in its outlook for 2026, focusing on operational efficiency rather than revenue growth, expecting revenues to decline in the mid-to-high single-digit range, due to lasting macroeconomic issues, geopolitical tensions, and remaining low consumer sentiment in key regions.”

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