mwb Research reiterated its Hold rating and €36.50 price target on Hugo Boss (ETR: BOSS) shares in a note on Tuesday following a better-than-expected first quarter, saying the luxury fashion group’s ongoing strategic overhaul and a challenging macro environment leave little room for upside near-term.
Analyst Alexander Zienkowicz noted that the quarter delivered a modest beat, with group revenues of €905 million coming in ahead of consensus expectations of €887 million.
The gross margin improved 110 basis points to 62.5%, driven by sourcing efficiencies and disciplined pricing.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
However, EBIT fell 42% year-on-year to €35 million, with the margin compressing from 6.1% to 3.9%, reflecting what mwb Research described as “reset-year dynamics” under the company’s CLAIM 5 TOUCHDOWN strategic framework.
On a currency-adjusted basis, sales declined 6% year-on-year, with EMEA and the Americas down 8% and 5% respectively, while Asia/Pacific returned to modest growth of 1%. The HUGO brand remained under significant pressure, falling 21% on a constant currency basis amid a strategic overhaul of its product range.
Free cash flow was highlighted as a genuine bright spot, swinging to €33 million from negative €66 million a year earlier, supported by a 13% reduction in inventories.
Management confirmed full-year 2026 guidance, targeting a mid- to high-single digit currency-adjusted revenue decline and EBIT of €300-350 million.
However, Zienkowicz cautioned that “the ongoing Middle East conflict adds meaningful uncertainty to the lower end of the EBIT range.”
With the macro environment still challenging, mwb Research left its estimates unchanged.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading or investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
