Investment Case

BOSS and HUGO – two strong brands with global awareness, that are clearly distinguished by their fashionable style but meet the same high standards in terms of quality and fit, innovation and sustainability. A 24/7 approach ensures that customers are well dressed across all different wearing occasions with casualization and comfort being key. Two clearly distinguished marketing strategies – with a strong focus on digital as well as exceptional events and collaborations – create excitement among consumers and elevate the brand value of BOSS and HUGO.

CLAIM 5 TOUCHDOWN marks the next chapter of our Group strategy, building on the strong foundation established under CLAIM 5. It is designed to further elevate the desirability of BOSS and HUGO, sharpen our global distribution and operational setup, and thereby lay the groundwork for sustainable, profitable growth. Over the medium to long term, the Company aims to outgrow the market and achieve an EBIT margin of around 12%. In line with this ambition, the next years will mark a phase of further strengthening the Company’s operational and financial base.

CLAIM 5 TOUCHDOWN paves the way for sustainable, profitable growth. In the coming years, HUGO BOSS will refocus its business to further strengthen brand equity, while also enhancing efficiency, profitability, and long-term value creation. Against this backdrop, 2026 will serve as a year of deliberate realignment, strengthening the business by streamlining processes, refining assortments, and optimizing the distribution network.

CLAIM 5 TOUCHDOWN is designed to significantly strengthen cash generation. Average free cash flow is targeted at around EUR 300 million annually (excluding the impact of IFRS 16). Including IFRS 16, this corresponds to a targeted annual average of around EUR 500 million (2025: EUR 499 million). This will be supported by a further normalization in capital expenditure and by disciplined trade net working capital management. The latter will benefit from a planned reduction in inventory levels.

HUGO BOSS is committed to conscious, value-oriented management. Consequently, sustainability is firmly anchored in the Group strategy. The Company’s sustainability targets include decreasing CO₂ emissions by 50% until 2030 and aiming for net zero by 2050. At the same time, circularity is a key pillar of our sustainability strategy. Consequently, we aim for 80% of our apparel products to be designed for circularity by 2030.