By Ozan Ergenay
May 5 (Reuters) – German fashion group Hugo Boss reported a quarterly operating profit above analysts’ expectations on Tuesday, sending its shares nearly 5% higher, even as the Iran war weighed on its Middle East markets.
The company’s first-quarter earnings before interest and taxes fell to 35 million euros ($41 million) from 61 million euros in the same period last year. That was still above analysts’ average forecast of 30 million euros in a company-provided poll.
“Following our successful finish to 2025, we entered the year with a clear roadmap. However, the market environment has become more challenging over the course of the first quarter, caused by recent developments in the Middle East,” CEO Daniel Grieder said in a statement.
Deutsche Bank said in a note that the report was a “decent start to the year” and should reassure investors on Tuesday.
The war in the Middle East has roiled global markets, driving oil prices higher and re-igniting concerns over global inflation and growth, as the vital Strait of Hormuz remains closed.
Hugo Boss said the conflict had led to a notable decline in store traffic in the region since March, while global consumer sentiment stayed muted throughout the first quarter, having a negative impact of around 1% on group sales.
Finance chief Yves Müller told reporters on a press call that the company had not seen any supply chain impact from the war yet, and said transport costs were expected to be manageable for 2026.
“We source approximately 50% of our materials from Europe, which means we are actually quite flexible in terms of our supply chain,” Müller said.
“We will certainly notice the effects over time, including in transport costs, but … it depends on how long this situation lasts.”
UNCERTAINTY OVER TARIFF REFUNDS
Asked about U.S. import tariffs and the refund process following the U.S. Supreme Court’s February 20 ruling that struck some of them down, Müller said it was too early to comment on that.
The ruling left unresolved how importers would be repaid, which has created uncertainty over the refund process.
“Let’s assume that for the portion of the duties that were unlawful, only to a part will be automatically refunded,” Müller said, without disclosing the figure Hugo Boss would be seeking.
“We’re making sure that we receive the money we overpaid.”
($1 = 0.8557 euros)
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham and Milla Nissi-Prussak)
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