HUGO BOSS has revised its 2026 outlook after a third quarter in which sales fell while gross margin improved. The November 3 update forecasts a high-single-digit currency-adjusted sales decline for the year and earnings before interest and taxes of €250 million to €300 million.
The company cited softer fourth-quarter demand assumptions and higher non-cash depreciation and amortization charges for IT assets, linked to rapidly changing AI and technology developments. It also expects annual free cash flow to remain below its original forecast.
Third-quarter sales declined 5% on a currency-adjusted basis, bringing the year-to-date decline to 7%. Gross margin rose 220 basis points to 63.3% as the group continued its CLAIM 5 TOUCHDOWN strategy. Quarterly EBIT fell to €81 million, equivalent to an 8.6% margin.
Cash generation offered a different signal: free cash flow before leases increased to €155 million, supported by inventories that were 14% lower than a year earlier.
The figures show the tension in the group’s current reset. Margin and inventory measures are improving, while weaker sales and operating deleverage continue to weigh on profit. Chief executive Daniel Grieder said the strategic direction remains unchanged as the company works toward a more resilient business.
