The Tamesis
In the first quarter of 2026, Hugo Boss sales fell 6% year-on-year to 905 million euros at constant exchange rates. The company attributed the sales decline to “intentional brand and channel realignment” under its “Claim 5 Touchdown” strategy.
In December 2025, Hugo Boss launched the “Claim 5 Touchdown” as an update to its original 2021 strategy focused on improving brand distribution and operational excellence to deliver profitable growth in 2028. Following its first-quarter update, the company reiterated its outlook for mid- to high-single-digit sales declines and EBIT of €300-305 million in 2026.
“After successfully completing our 2025 targets, we enter the new year with a clear roadmap. However, the market environment in the first quarter became more challenging due to recent developments in the Middle East. Against this background, we have decisively entered the execution phase of Claim 5 TD,” CEO Daniel Grieder said in a statement. “We have made tangible progress in implementing targeted brand and channel realignments, including simplifying our product offerings and improving our global distribution footprint. As expected, these thoughtful actions are reflected in our top line results and mark the first concrete steps in structurally refocusing our business and strengthening the quality of our long-term earnings.”
Gross margin improved 1.1% to 62.5%, driven by procurement efficiencies, while operating expenses fell 4% due to lower sales and marketing expenses. EBITDA fell from €61 million in the first quarter of 2025 to €35 million in the current quarter.
By brand, Boss sales fell 3% and Hugo sales fell 21%. The company said revenue was impacted by targeted actions to strengthen long-term brand equity across brands. Hugo Boss has implemented a new organizational setup for Boss Womenswear and Hugo to strengthen gender-specific expertise in an ongoing brand realignment.
In EMEA (Europe, the Middle East and Africa), sales fell 8%, with sentiment in key markets such as Germany, France and the UK being sluggish. As for the Middle East, sales fell in the low double digits as geopolitical uncertainty led to lower store traffic. In the Americas, sales declined 5%, primarily due to mid-single-digit declines in the United States and slight declines in Latin America. The Asia-Pacific region returned to growth from the previous quarter, growing 1% in the first quarter, driven by improving economies in China, Southeast Asia and Japan.
Retail sales were down 3%, brick-and-mortar sales were down 2% and wholesale sales were down 10% as Hugo Boss worked to improve store productivity. The company attributed the drop in retail and wholesale sales to a “continued focus on distribution excellence,” including being more selective about assortment and wholesale partners, as well as the closure of 15 independent stores globally. Meanwhile, the total number of customers increased 20% year over year in the first quarter to nearly 14 million.
“In the face of an increasingly challenging external backdrop, we remain firmly focused on executing our strategy to proactively manage the business in a flexible and disciplined manner,” Grider said. “Our clear direction in the Claim 5 Touchdown, coupled with our strong focus on profitability and cash generation, underscores our confidence in creating long-term value for our shareholders.”
