Weak sales and AI are causing Hugo Boss to shrink

Hugo Boss saw its revenue decline again in the third quarter and is lowering its profit forecast for 2026. In addition to weak consumer demand, the rapid rise of artificial intelligence is also playing a role. The disappointing results come barely a week after Frasers Group acquired control of the German fashion house.

Casual Hugo fails to catch on

Hugo Boss’s revenue fell by 5% to 946 million euros in the third quarter, or by 4% at constant exchange rates. Europe, the Middle East, and Africa performed particularly poorly: in that region, revenue dropped by 7% to 598 million euros. Germany held up relatively well, but consumers in France and the United Kingdom were less enthusiastic. Sales remained stable in the Americas and Asia-Pacific.