Hugo Boss Beats Q2 Profit Forecast, Cushions U.S. Tariff Impact

German premium-apparel group Hugo Boss beat second-quarter profit estimates and confirmed its full-year guidance, citing tighter cost control and limited exposure to the United States. Revenue slipped 1% to about €1 billion, but EBIT rose 15% to €81 million, surpassing the company-compiled consensus of €77 million. Net profit increased 27% to €47 million. Chief Financial Officer Yves Mueller said only around 15% of group sales stem from the United States, insulating the company from Washington’s 145% tariff on Chinese goods. Hugo Boss sources roughly half of the merchandise it sells in the U.S. from Europe—mainly Turkey—and less than 5% from China, leaving the anticipated hit to gross margin in the low double-digit million-euro range. The company plans low- to mid-single-digit global price increases for its Spring 2026 collection to offset higher costs. Management warned that consumer sentiment remains weak worldwide, particularly in China, but reiterated the 2025 outlook of mid-single-digit currency-adjusted sales growth and an EBIT margin between 10% and 11%. Investors welcomed the resilience; the shares gained about 7% in Frankfurt trading, reaching a five-month high.