Hugo Boss sales and profits tumble in early 2023 downturn
Hugo Boss has reported a sharp drop in sales and profits for the first quarter of 2023. The fashion group’s revenue fell by 6 percent to €905 million, while operating profit plunged by 42 percent. Management now expects a further decline for the full year ahead. The company’s struggles were widespread across its brands and regions. Sales of its Hugo label dropped by 21 percent, while the Boss line saw a smaller decline of 3 percent. In Europe, the Middle East, and Africa—key markets for the group—revenues fell by 8 percent. Even major countries like Germany, France, and the UK experienced similar downturns.
The Middle East conflict had only a minor effect, reducing first-quarter revenue by around 1 percent. Despite this, the overall decline has prompted Hugo Boss to revise its outlook. The firm now anticipates a mid- to high-single-digit drop in annual sales for 2023.
As part of a long-term restructuring plan, the company will close 15 of its 50 global stores by 2028. Fifteen outlets have already shut down. Hugo Boss’s new strategy, named Claim 5 Touchdown, aims to restore growth—but not before 2027 at the earliest. Hugo Boss faces a challenging year, with profits and sales both shrinking. The store closures and revised strategy signal a push for recovery, though meaningful growth remains years away. For now, the company must navigate a difficult market as it works toward its 2027 targets.
