Hugo Boss Reports 5% Drop in Third-Quarter Sales as Frasers Group Prepares Takeover

Hugo Boss saw its third-quarter sales for 2026 drop by 5% year-on-year on a constant currency basis. The decline has been attributed to macroeconomic conditions and the company's ongoing effort to execute a strategic turnaround.

Performance varied across the company's brands during the quarter. Revenue for the Boss brand fell by 5%, while sales for the Hugo brand experienced a steeper drop of 18%. Single-digit sales decreases were recorded across all geographic territories.

Despite the drop in sales, the company's gross margin expanded by 220 basis points to reach 63.3%. However, earnings before interest and taxes decreased 15% down to €81 million, compared to €95 million in the prior year.

The German fashion house has adjusted its full-year guidance downward to the high-single-digit range. The update comes as British retail conglomerate Frasers Group acquires a 50.08% stake in the company, making Hugo Boss a subsidiary of the group.