Metzingen, August 1 (FFN) – German fashion brand Hugo Boss has reported a significant drop in net profit in the second quarter. In response to the adverse data, the company stated that it would focus more on cost reduction in the future. This was reported by the agencies DPA and Reuters.
Hugo Boss’s net profit in the second quarter reached 37 million euros. Compared to the second quarter of the previous year, this represents a decrease of 50.7%.
Revenue reached 1.015 billion euros, a decrease of approximately 1% compared to the same period in 2023.
For the entire first half of the year, profit development was better than in the second quarter, thanks to a more successful first quarter. However, even for the six months of the year, Hugo Boss’s net profit decreased, although the decrease was milder and amounted to approximately 32%. The company recorded a net profit of 75 million euros in the first half of the year, compared to 110 million euros a year ago.
Revenue also developed better for the entire half-year thanks to the first three months of the year. In six months, the company’s revenue reached 2.03 billion euros, representing a year-on-year increase of 2%.
In response to the results, CEO Daniel Grieder stated that the company is taking into account the current market conditions and plans to strengthen cost discipline. “Global market conditions have deteriorated significantly in the first half of this year. The deterioration of consumer sentiment in most markets has led to a significant slowdown in growth across the entire fashion industry, and we have not been able to avoid it,” said Grieder. However, he added that even if conditions remain challenging, Hugo Boss plans to continue increasing its market share.
Hugo Boss Financial Performance Comparison (Q2 2023 vs. Q2 2024)
| Metric | Q2 2023 (in million EUR) | Q2 2024 (in million EUR) | Change (%) |
|---|---|---|---|
| Net Profit | 110 | 37 | -66.36% |
| Revenue | 1025 | 1015 | -0.98% |
