Hugo Boss sales fell 6% year-on-year to €905 million, on a constant currency basis, in the first quarter of 2026. The company attributed the decline to a “deliberate brand and channel realignment” under its Claim 5 Touchdown strategy.
In December 2025, Hugo Boss introduced Claim 5 Touchdown as an update to its original 2021 strategy, focusing on improving brand distribution and operational excellence to reach profitable growth by 2028. Following the Q1 update, the company reaffirmed its 2026 outlook of a mid to high-single-digit sales decline and an EBIT of €300-305 million.
“Following our successful finish to 2025, we entered the year with a clear roadmap. However, the market environment has become more challenging over the course of the first quarter, caused by recent developments in the Middle East. Against this backdrop, we moved decisively into the execution phase of Claim 5 Touchdown,” CEO Daniel Grieder said in a statement. “We made tangible progress in implementing our targeted brand and channel realignment, including streamlining product assortments and refining our global distribution footprint. As expected, these deliberate actions are reflected in our top-line performance and mark the first concrete steps in structurally refocusing the business and strengthening long-term earnings quality.”
Gross margin improved 1.1% to 62.5%, driven by sourcing efficiencies, while operating expenses declined 4%, due to lower selling and marketing expenses. EBITDA dropped from €61 million in Q1 2025 to €35 million this quarter.
By brand, sales at Boss declined 3%, while sales at Hugo dropped 21%. The company said revenues were impacted by targeted actions to strengthen long-term brand equity across labels. Hugo Boss has implemented a new organizational setup for Boss womenswear and Hugo to strengthen gender-specific expertise amid this ongoing brand realignment.
In EMEA (Europe, the Middle East, and Africa), sales dropped 8%, with muted sentiment across key markets such as Germany, France, and the UK. As for the Middle East, a low-double-digit sales decline was driven by a drop in store traffic following geopolitical uncertainties. In the Americas, sales fell 5%, primarily driven by a mid-single-digit decline in the US and a slight decline in Latin America. Asia-Pacific returned to growth from last quarter, up 1% in Q1 propelled by improvements in China, Southeast Asia, and Japan.
Retail sales dropped 3%, with bricks-and-mortar transactions down 2% as Hugo Boss took efforts to enhance store productivity, while wholesale sales dropped 10%. The company attributed its retail and wholesale sales declines to its “continued focus on distribution excellence”, including being more selective about assortments and wholesale partners, and closing 15 freestanding stores globally. At the same time, the number of total customers grew 20% year-on-year in Q1 to almost 14 million.
“Against an increasingly challenging external backdrop, we remain firmly focused on executing our strategy, actively managing the business with flexibility and discipline,” said Grieder. “Our clear direction under Claim 5 Touchdown, combined with our strong focus on profitability and cash generation, underlines our confidence in creating long-term value for our shareholders.”
