While the Company’s overall strategic direction remains unchanged, HUGO BOSS will sharpen its focus on rebalancing top-line growth toward stronger profitability and cash generation. In doing so, CLAIM 5 TOUCHDOWN places particular emphasis on those areas of the business with the greatest potential for further 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. At the same time, HUGO BOSS aims to accelerate average free cash flow generation, thereby forming the basis for future shareholder returns. To deliver against this ambition, execution will center on three key fields of excellence: brand, distribution, and operations. Initiatives across these priorities are designed to foster brand equity and drive efficiency across the organization, while setting the stage for renewed top- and bottom-line growth from 2027 onward. Overall, our vision remains clear: to be the premium, tech-driven, customer-centric global fashion platform.
CLAIM 5 TOUCHDOWN
Brand Excellence
As part of CLAIM 5, we comprehensively renewed the brand images of BOSS and HUGO. With a bolder, younger, and more emotional appearance, momentum for both brands has increased noticeably in recent years. At the same time, we successfully evolved our brands into true 24/7 lifestyle brands with the introduction of new brand lines, ensuring that our customers are perfectly dressed for every occasion.
Going forward, HUGO BOSS is committed to driving Brand Excellence by further elevating BOSS and HUGO. A new organizational setup with two dedicated powerhouses for menswear and womenswear will unlock synergies across the two brands, while strengthening gender-specific expertise. BOSS Menswear will remain the Group’s key growth engine, continuing to leverage its strong 24/7 lifestyle positioning across a clearly differentiated product portfolio. In this context, we see particular growth opportunities across BOSS Green and BOSS Camel, while we remain committed to further capitalizing on product categories such as shoes, accessories, and bodywear. At the same time, we aim to reduce product complexity and further sharpen assortments of BOSS Menswear to drive scalability, increase productivity, and support profitability.
Shaping Brand Excellence
With CLAIM 5 TOUCHDOWN, it’s time to further elevate BOSS and HUGO, continue shaping what our brands stand for, and strengthen their positioning as truly desired global brands.
Learn more Learn moreWithin the new powerhouse structure, the Company is also focused on improving the long-term performance of BOSS Womenswear and HUGO, currently accounting for 7% and 15% of Group sales, respectively. BOSS Womenswear will further sharpen its identity through a clearly defined positioning. Going forward, it will focus on a more curated and streamlined product assortment built around essential products, aimed at strengthening resonance with female consumers. HUGO will further refine its identity through an enhanced positioning and a more accessible product range, with an even stronger focus on contemporary tailoring. In doing so, the Company aims to increase commercial relevance over time. Across both brands, the Company will put particular emphasis on exploiting its growth potential within its core region Europe as well as the U.S.
Overall, we aim to strengthen the position of BOSS and HUGO as truly desired global brands. To achieve this, we will continue to build brand equity and deepen consumer relationships. Marketing remains a key lever in this regard, with investments targeted at around 7% of Group sales (2025: 7.1%). We will prioritize high-return initiatives, including strategic partnerships such as Beckham x BOSS, and impactful, product-led campaigns. In doing so, the Company seeks to drive full-funnel engagement, translating brand awareness into purchase intent and, ultimately, into customer loyalty. By consistently inviting consumers into the worlds of BOSS and HUGO, we are committed to creating sustainable long-term brand value.
Distribution Excellence
In prior years, we have made substantial progress in translating the brand power of BOSS and HUGO into our various customer touchpoints, thus providing consumers with a premium omnichannel experience. In this context, we significantly invested into our high-quality channel mix on a global scale to ensure a seamless brand experience across all touchpoints.
A clear focus on Distribution Excellence will further elevate the brand experience across all touchpoints, supported by a more targeted and higher-quality distribution footprint. In brick-and-mortar retail, HUGO BOSS will continue to optimize its store portfolio for an even better customer experience. Besides the selective closure of underperforming stores, this includes initiatives to enhance sales productivity and retail efficiency – such as improving rent-to-sales ratios and implementing smart price increases – as well as elevating the in-store experience through more curated product assortments and even more personalized customer service. By doing so, the Company aims to strengthen both store profitability and customer loyalty.
Shaping Distribution Excellence
Excellent brands deserve excellent stages. That’s why we continue to shape every moment where consumers experience BOSS and HUGO – not only showcasing our brands but make people feel them.
Learn more Learn moreAt the same time, the Company will strengthen the quality of its brick-and-mortar wholesale business by fostering strategic partnerships and pursuing a more selective assortment strategy. This approach is essential to strengthening brand equity and supporting profitable growth. In parallel, HUGO BOSS will unlock additional growth opportunities by further expanding its global franchise business, with a particular focus on emerging markets.
Building on strong growth in recent years, HUGO BOSS will continue to drive its digital business by further advancing seamless brand and customer experiences across platforms. In this context, we will further amplify our two-brand strategy on hugoboss.com to enhance customer experience, while reinforcing clear assortment guidelines and a consistent brand presentation across all touchpoints. Consumer Touchpoints
From a regional perspective, HUGO BOSS will continue to leverage its strong and leading presence in Europe to drive further market share gains and profitable growth. Building on this solid foundation, the Company will continue to strengthen its positions in the U.S. and China by optimizing distribution and tailoring brand activities to local market needs. At the same time, HUGO BOSS will capture additional growth opportunities in emerging markets, supported by its expanding franchise footprint.
Operational Excellence
In recent years, HUGO BOSS has built a robust operational platform, investing around EUR 500 million in digital capabilities, sourcing, logistics capacity expansion, and back-end infrastructure. At the same time, the Company successfully executed a range of strategic initiatives to strengthen its supply chain and unlock economies of scale. These include consolidating the supplier base, significantly shifting from air freight to sea freight, reducing product complexity, and increasing nearshoring activities. Collectively, these measures are designed to notably enhance flexibility and efficiency in the future.
Building on this solid foundation, HUGO BOSS will further elevate Operational Excellence across the entire value chain. By leveraging past investments, the Company aims to support long-term growth, improve profitability, and strengthen cash generation. Key priorities include further increasing sourcing efficiencies by leveraging additional economies of scale through continued vendor optimization, maintaining a sea-freight-first approach, and achieving shorter lead times, thereby supporting sustainable improvements in gross margin. Business Operations
Shaping Operational Excellence
Behind every strong brand stands a strong engine. Over the past years, we have systematically built that engine, with significant investments into global operations. Now, we are shifting from building the foundation to fully leveraging it.
Learn more Learn moreIn parallel, the Company will further enhance its planning capabilities and enable faster, smarter decision-making through technology and artificial intelligence. Central to this effort is our Digital TWIN initiative, which provides greater transparency, advanced data analytics, agile planning, and informed decision-making. In addition, the Company will maximize the benefits of its expanded automated logistics network and further strengthen back-end efficiency through streamlined processes and automation. Together, these initiatives are expected to positively impact operating expenses by driving efficiency gains across the organization.
Financial ambition
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.
Against the backdrop of deliberate brand and channel realignment, 2026 will be a year of consolidation and an important step toward positioning HUGO BOSS for long-term profitable growth. Currency-adjusted sales are expected to decline mid- to high-single digits in 2026 (2025: EUR 4.3 billion), before returning to growth in 2027, and accelerating in 2028. Gross margin improvements are expected in 2026 and beyond, supported by sourcing efficiencies, selective price adjustments, and stronger full-price sell-through. Supported by ongoing cost discipline, EBIT is expected between EUR 300 million and EUR 350 million in 2026 (2025: EUR 391 million), with profitability improving from 2027 onward. Further details on our targets for fiscal year 2026 are presented in the Outlook section. Outlook
At the same time, 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, targeted between 3% and 4% of Group sales (2025: 4.6%), and by disciplined trade net working capital management, amounting to between 18% and 20% of Group sales (2025: 20.0%). The latter will benefit from a planned reduction in inventory levels, which are forecast to approach 20% of sales by 2028 (2025: 21.5%). Overall, these measures are intended to underpin the Company’s financial framework and provide the basis for sustainable, profitable growth and attractive shareholder returns over the medium to long term.
Capital allocation framework
As part of CLAIM 5 TOUCHDOWN, the Company’s capital allocation framework is designed to balance investment, value creation, and resilience. The framework emphasizes continued investments into the business to support long-term profitable growth, while also including a firm commitment to delivering continued shareholder returns. In this context, HUGO BOSS plans to buy back shares in an amount of up to EUR 200 million until December 31, 2027. At the same time, HUGO BOSS will continue to further strengthen its balance sheet over the coming years, aiming to reduce financial leverage while remaining within its target corridor and maintaining investment-grade ratings from S&P (“BBB-”) and Moody’s (“Baa2”). The Company will also preserve the strategic flexibility needed to pursue selective, value-accretive M&A opportunities. Outlook
Focused execution for sustainable growth
CLAIM 5 TOUCHDOWN serves to sharpen focus, discipline, and execution across the business. With clear priorities, a performance-driven culture, and fully committed teams, HUGO BOSS is well positioned to navigate market challenges and translate strategic focus into tangible results. Backed by its strong cash flow profile and a clear trajectory toward sustainable, profitable growth, HUGO BOSS remains firmly committed to driving long-term shareholder value.