Published by Global Banking & Finance Review®
Posted on March 13, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleHugo Boss warns of weaker demand in the US and China, citing trade tensions. Shares fell 5% as they forecast 2025 sales similar to last year's levels.
By Linda Pasquini and Isabel Demetz
(Reuters) -Hugo Boss warned on Thursday of a further weakening in consumer confidence in the United States and China, sending its shares down as much as 5%, as the upmarket fashion label forecast 2025 sales broadly in line with last year's level.
The company is the latest to warn about slowing consumer demand amid potential damage from U.S. President Donald Trump's trade wars.
Hugo Boss is closely monitoring developments in tariff policy, CEO Daniel Grieder said on a call with journalists, adding it was too early to quantify the potential impact on business.
The group has reduced the share of its global sourcing and production volume from China in recent years to 7% from more than 20% a few years ago, its annual report shows.
Grieder flagged risks to the business from uncertainties in China and the U.S., as well as global trade tensions, saying a hit to demand was already visible in the current quarter.
"We expect a muted first quarter performance, trending somewhat below our full-year top-line guidance range," he added.
Hugo Boss forecast annual sales of 4.2 billion to 4.4 billion euros ($4.57 billion to $4.79 billion), equivalent to between a 2% fall and a 2% rise, following 3% growth to 4.3 billion euros in 2024.
After an initial rise, the company's shares dropped as much as 5% following the management's downbeat comments. The stock was again in positive territory at 1002 GMT.
Hugo Boss has sought to boost the popularity of its brand through selected marketing investments, while increasing profits by limiting costs, despite weakening consumer demand.
It expects full-year earnings before interest and taxes (EBIT) to rise between 5% and 22% to 380 million to 440 million euros, compared to a 12% decline to 361 million euros last year.
Grieder said the company's targets to reach 5 billion euros in revenue and a 12% EBIT were doable, but declined to give a timeline.
($1 = 0.9189 euros)
(Reporting by Linda Pasquini and Isabel Demetz in Gdansk. Editing by Milla Nissi and Mark Potter)
The article discusses Hugo Boss's warning about weaker demand in the US and China due to trade tensions and tariffs.
Hugo Boss's shares fell as much as 5% following the announcement of weaker demand forecasts.
Hugo Boss forecasts annual sales of 4.2 to 4.4 billion euros, with EBIT expected to rise between 5% and 22%.
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