Q2 2026 Hugo Boss AG Earnings Call Transcript
Key Points
- Gross margin expanded by 200 basis points to 64.9% in Q2, driven by sourcing efficiencies, higher full-price sales, and price increases.
- Free cash flow before leases reached EUR105 million in Q2, up EUR137 million in the first half, reflecting strong cash generation.
- Inventories decreased by 15% year-over-year, improving inventory efficiency and supporting working capital discipline.
- Hugo Boss XP loyalty program membership grew 16% year-over-year to over 14 million, with nearly half of new members being younger consumers.
- The successful go-live of the Filderstadt distribution center extension is expected to deliver low double-digit million euro efficiency gains starting in Q3.
- Group sales declined by 9% in Q2, impacted by weak consumer demand and strategic realignment measures.
- EMEA sales fell 13%, affected by softer local demand, weaker tourism, and lower traffic in the Middle East due to geopolitical developments.
- Hugo brand revenues declined by 14%, reflecting ongoing repositioning and a more focused assortment.
- EBIT margin decreased to 6.5% due to operating deleverage from lower volumes.
- The company expects continued volatility and geopolitical uncertainty to weigh on consumer sentiment in the second half, with EMEA sales projected to decline in the high single-digit to low-teen range.
Ladies and gentlemen, welcome to the Q2 2026 results conference call and live webcast. I am Sandra, the [course] call operator. (Operator Instructions) and the conference is being recorded.
The presentation will be followed by a Q&A session. (Operator Instructions) The conference must now be recorded for publication or broadcast.
At this time, it is my pleasure to hand over to Christian Stoehr, Senior Vice President, Investor Relations. Please go ahead, sir.
Good morning, ladies and gentlemen, and welcome to our second quarter 2026 results presentation. Today's call will be hosted by Daniel Grieder , CEO of Hugo Boss and Yves Miller, CFO and COO. Before we begin, please be reminded that all revenue growth rates will be discussed on a currency-adjusted basis, understated otherwise.
Also, as usual, during the Q&A session, we kindly ask all analysts to limit their questions to two. And with that, let me hand over to Daniel.
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