Hugo Boss Reports 5% Sales Drop as Turnaround Strategy Holds Back Growth

Hugo Boss reported a 5% drop in sales, which it says is due to its own turnaround strategy. Announced in December 2025 by group CEO Daniel Grieder, Touchdown is all about branding, better distribution and operations, but for now it's holding back growth.

The report comes weeks after Frasers Group successfully completed its takeover of Hugo Boss and its two brands, namely the millennials-targeted Boss and the Gen Z brand Hugo, on October 23. The takeover of the German company by the British retail conglomerate was initially rejected over the summer, but the latter kept buying shares until it became a majority shareholder.

Speaking on the earnings call on Tuesday, Grieder said the relationship was positive. "We are in regular and constructive dialogue with Frasers Group, and we truly value them as a substantial long-term shareholder," he told analysts. "It's not a short-term investment for them." Frasers CEO Michael Murray took the top post at Hugo Boss in September when Stephan Sturm quit his post.

Turnaround Strategy and Revenue Performance

While recognizing the tough macroeconomic climate and geopolitical situation, along with poor consumer demand, Grieder expressed his positive attitude about the "new constellation" of the company being a Frasers subsidiary, emphasizing strict distribution and profitability management. "Our strategy regarding the touchdown on Claim 5 hasn't changed at all, and I truly believe that we are going in the right direction," he said. "However, there is still a way to go... the results from the mentioned initiatives will take some time to bear fruit."

The revenues generated by Boss fell 3%, amounting to €813 million, while Hugo's income fell 17% to €133 million. The labels maintain their marketing expenses with the help of the launch of Boss by Beckham capsule collection.