((Automated translation by Reuters using machine learning and generative AI, please refer to the following disclaimer: https://bit.ly/rtrsauto)) (Added analyst commentary in paragraph 4, comments from the CFO as well as background information on the Iran war and customs duty refunds in paragraphs 7 at 12) by Ozan Ergenay
German fashion group Hugo Boss
BOSSn.DE on Tuesday reported a quarterly operating profit that beat analysts’ expectations, sending its stock up nearly 5%, even as the war in Iran weighed on its Middle East markets. The company’s earnings before interest and taxes (Ebit) in the first quarter fell to 35 million euros ($41 million), compared to 61 million euros in the same period last year. This figure, however, remains higher than the average forecast of analysts, which amounted to 30 million euros according to a survey carried out by the company.
“Having closed 2025 on a positive note, we started this year with a clear roadmap. However, the market environment became more challenging during the first quarter, due to recent developments in the Middle East,” said CEO Daniel Grieder in a press release.
Deutsche Bank said in a note that this report was a “good start to the year” and should reassure investors on Tuesday.
The war in the Middle East has shaken global markets, pushing up oil prices and reigniting concerns about global inflation and growth, while the vital Strait of Hormuz remains closed.
Hugo Boss said the conflict had led to a notable drop in store traffic in the region since March, while global consumer sentiment remained subdued throughout the first quarter, which had a negative impact of around 1% on the group’s turnover.
Chief Financial Officer Yves Müller told reporters at a news conference that the company had not yet seen any impact from the war on the supply chain, and indicated that transportation costs were expected to remain manageable for 2026.
“We source about 50% from Europe, which means we’re actually quite flexible in terms of the supply chain,” Müller said.
“We will certainly feel the effects over time, particularly on transport costs, but… it will depend on how long this situation lasts.”
UNCERTAINTY REGARDING CUSTOMS DUTIES REFUNDS
Asked about US import tariffs and the refund process following the February 20 ruling by the US Supreme Court, which invalidated some of them, Müller said it was too early to pronounce on this subject.
The decision did not resolve the issue of reimbursement to importers, which created uncertainty about the reimbursement process.
“Let’s assume that, for the part of the rights which was illegal, only a part will be automatically refunded,” declared Mr. Müller, without revealing the amount that Hugo Boss intended to claim.
“We are making sure we get back the money we overpaid.”
(1 $ = 0,8557 euros)
