Q1 2025 Hugo Boss AG Earnings Call Transcript
Key Points
- Hugo Boss AG (BOSSY) exceeded market expectations on both revenues and earnings, showcasing the strength and resilience of its business model.
- The company maintained a stable gross margin of 61.4% in Q1 2025, supported by efficiency gains in sourcing and reduced air freight share.
- Hugo Boss AG's strategic partnership with David Beckham has generated strong media reach and strengthened brand appeal, contributing to above-average sales through rates.
- Digital sales increased by 4%, driven by revenues generated with partners, indicating a robust online presence.
- The company has a globally diversified sourcing structure, reducing dependency on China and enhancing supply chain resilience.
- Revenues in the Asia Pacific region declined by 8%, with subdued consumer confidence in China impacting demand.
- Brick-and-mortar retail sales declined by 4% due to reduced mall and store traffic, particularly in the US and China.
- The company's EBIT declined by 12% to EUR61 million, with an EBIT margin down 70 basis points to 6.1%.
- Free cash flow was negative at minus EUR66 million in Q1, reflecting lower EBIT and higher inventory positions.
- The macroeconomic environment remains uncertain, with geopolitical tensions and trade restrictions posing significant challenges.
Good morning, ladies and gentlemen, and welcome to the Q1 2025 results call. I am Yousef, the Chorus Call operator. (Operator Instructions) The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Christian Stöhr, Senior Vice President, Investor Relations.
Good morning, ladies and gentlemen, and welcome to our first-quarter 2025 results presentation. Before we begin, I want to inform you that Yves Müller, CFO and COO of HUGO BOSS is unfortunately unable to join us today due to a personal matter. In his absence, our CEO, Daniel Grieder, who is currently on the business trip in the US, will be leading today's presentation. We are also joined by Ivica Maric, Executive Vice President, Business Operations, who oversees both our global controlling function and our operations activities. He will participate in the Q&A session, which will be managed out of (inaudible).
Please be reminded that during our presentation,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
