Hugo Boss cuts 2026 profit forecast and sees weaker fourth-quarter demand

what happened

Hugo Boss has reduced its outlook for 2026. The German fashion group now forecasts EBIT of between €250 million and €300 million, compared with its earlier range of €300 million to €350 million. Sales are now projected to fall by a high single-digit percentage, a steeper drop than the mid-to-high single-digit decline it had previously signaled, TradingView reports.

The company attributed the revision to higher non-cash depreciation and amortisation on IT assets, linked to fast-moving developments in AI and technology, along with weaker demand expected in the fourth quarter amid elevated market uncertainty. In the third quarter, group sales slipped 4% to €946 million and EBIT dropped to €81 million from €95 million a year earlier. Chief executive Daniel Grieder linked the top-line trend to a deliberate business realignment and a consumer environment that remains subdued.

Grieder said the company is still making progress on gross margin and operating efficiency, and that its strategic direction is unchanged. At 09:20 GMT, the shares were trading 0.7% lower at €38.67.

why it matters

The cut comes as consumer demand stays weak, suggesting the business overhaul will take longer than expected and that higher IT depreciation will weigh on profit this year. For investors following European apparel names, it is a reminder of how fragile discretionary spending remains heading into the holiday season.

market impact

Hugo Boss shares: lower profit and sales outlook weighs on the stock

• ▼Hugo Boss shares pressure down — lowered profit and sales guidance reduces earnings expectations

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