Income Statement

At 61.5%, gross margin in fiscal year 2025 remained 20 basis points below the prior-year level. This development primarily reflects various external market headwinds, including unfavorable currency effects and an overall promotional market environment. In addition, adverse channel mix effects weighed on the gross margin development. These factors more than offset continued efficiency gains in sourcing and lower global freight rates, which provided meaningful tailwinds to gross margin development in fiscal year 2025. Business Operations

In fiscal year 2025, HUGO BOSS continued to successfully execute various cost-efficiency measures, thereby streamlining and optimizing key business areas such as sales, marketing, and administration. As a result, operating expenses declined 3%, improving by 100 basis points to 52.4% of Group sales. This development particularly reflects lower selling and marketing expenses, while administration expenses remained broadly on the prior-year level. Notes to the Consolidated Financial Statements, Notes 2, 3, and 9

Selling and marketing expenses were down 3% compared to the prior year. As a percentage of sales, selling and marketing expenses improved by 110 basis points to a level of 42.3% (2024: 43.4%), reflecting ongoing cost discipline and efficiency gains. As part of that, selling expenses for the Group’s brick-and-mortar retail business decreased by 5% to EUR 943 million, representing 22.1% of Group sales (2024: EUR 989 million; 23.0%). This development mainly reflects improved cost structures in line with overall traffic trends as well as lower non-cash impairment charges. At the same time, marketing investments declined 2% to a level of EUR 303 million, representing 7.1% of Group sales (2024: EUR 309 million; 7.2%). This primarily reflects the Company’s increased focus on marketing efficiency by prioritizing brand initiatives with the highest return. Notes to the Consolidated Financial Statements, Note 2, Group Strategy, Brand Excellence

Administration expenses remained on the prior-year level, supported by efficient overhead cost management. As a percentage of sales, administration expenses increased slightly, up by 10 basis points to a level of 10.1% (2024: 10.0%). As part of that, EUR 344 million, general administration expenses were up slightly compared to the prior year (2024: EUR 341 million), reflecting higher payroll cost and overall cost inflation, while research and development expenses incurring in the collection development remained 4% below 2024 levels, amounting to EUR 87 million (2024: EUR 90 million). Notes to the Consolidated Financial Statements, Note 3, Product Development and Innovation

Driven by the Company’s rigorous focus on fostering cost efficiency, operating profit (EBIT) was up 8%, amounting to EUR 391 million in fiscal year 2025. Accordingly, the Group’s EBIT margin increased by 80 basis points to a level of 9.2%, reflecting the cost leverage in selling and marketing expenses. Currency effects had a notably negative impact on EBIT in fiscal year 2025.

Depreciation and amortization came in 6% below the prior-year level, amounting to EUR 391 million (2024: EUR 414 million). This development is driven by lower non-cash impairment charges, totaling EUR 29 million (2024: EUR 47 million), and related to impairments of fixed store assets and right-of-use assets. Notes to the Consolidated Financial Statements, Note 7

At EUR 46 million, net financial expenses (financial result) in fiscal year 2025 were 23% below the prior year (2024: EUR 59 million), reflecting both favorable currency effects as well as lower interest expenses. At a level of 25%, the Group tax rate was slightly below the prior year (2024: 26%). Accordingly, the Group’s net income for fiscal year 2025 amounted to EUR 259 million, 16% above the prior-year level (2024: EUR 224 million). As part of this, net income attributable to shareholders increased by 17% to EUR 249 million (2024: EUR 213 million), resulting in earnings per share of EUR 3.61 (2024: EUR 3.09). Overall, currency effects had a modestly negative impact on the Group’s net income in fiscal year 2025. Notes to the Consolidated Financial Statements, Note 4 and 5