HUGO BOSS maintains investment-grade ratings from the leading rating agencies Standard & Poor’s (S&P) and Moody’s, underscoring its strong financial position and the cash-generative nature of its business model. Moody’s assigns HUGO BOSS a credit rating of “Baa2,” which was reaffirmed in 2025. S&P currently rates the Company “BBB–,” following a one-notch adjustment in December 2025, against the backdrop of a less supportive financial policy including a leverage target of 1.0 – 2.0x. Overall, these ratings continue to position HUGO BOSS among the highest-rated companies in the global premium apparel industry, reflecting the Company’s strong brand perception, sound financial profile, and financing flexibility.
The cornerstone of HUGO BOSS’ financing structure is a EUR 600 million ESG-linked revolving syndicated loan, providing strong financial flexibility to support the execution of the Company’s strategic initiatives. The facility, concluded in December 2025, replaces the previous syndicated loan from November 2021 and is available for general corporate purposes. It has a five-year term and includes two one-year extension options, as well as an option to increase the credit volume by up to EUR 300 million. Compared to the prior facility, the new loan no longer includes financial covenants. It is based on variable interest rates, with applicable credit margins linked to the external credit rating and the achievement of predefined ESG criteria. At the end of fiscal year 2025, utilization amounted to EUR 8 million, used exclusively for bank guarantees (December 31, 2024: EUR 11 million).
In May 2025, HUGO BOSS successfully established a commercial paper (CP) program, enabling the issuance of short-term, unsecured notes with an aggregate volume of up to EUR 500 million. The program further enhances the Company’s financial flexibility and expands access to capital markets beyond traditional bank financing. Commercial papers can be issued in various currencies and are intended for general corporate purposes. As of December 31, 2025, no commercial papers were outstanding.
In addition, HUGO BOSS issued a Schuldschein loan of EUR 175 million in 2023, comprising four tranches with three- and five-year maturities, offered at both fixed and variable interest rates. Proceeds are used for general corporate purposes, primarily supporting strategic investments, including the expansion of the Group’s global logistics network. Furthermore, HUGO BOSS secured real estate financing of EUR 43 million in 2024 to support the expansion of its headquarters in Metzingen (Germany). This financing comprises two amortizing loans with fixed interest rates in the amount of EUR 10 million and EUR 33 million, each with a maturity of ten years. As of December 31, 2025, EUR 1 million of the total amount was utilized (December 31, 2024: EUR 0 million). Financial Position, Capital Expenditure
Since 2020, HUGO BOSS operates a supplier financing program to support the financial stability of its suppliers. To meet the ongoing strong demand for its supplier financing program, HUGO BOSS operates a comprehensive solution comprising a single-bank program and a bank-independent platform. The aggregated credit limit of both programs amounts to EUR 255 million, with EUR 110 million utilized at the end of 2025 (December 31, 2024: aggregated credit limit of EUR 268 million, with EUR 148 million utilized). Combined Non-financial Statement, Business Conduct
To further secure liquidity, HUGO BOSS maintains committed and uncommitted bilateral credit lines totaling EUR 258 million (December 31, 2024: EUR 208 million), of which EUR 118 million was utilized at the end of fiscal year 2025 (December 31, 2024: EUR 108 million). In addition, cash and cash equivalents amounted to EUR 343 million at year end (December 31, 2024: EUR 211 million). Notes to the Consolidated Financial Statements, Note 14, Financial Position, Statement of Cash Flows and Free Cash Flow
Overall, the Group’s liabilities totaled EUR 2,163 million at the end of fiscal year 2025 (December 31, 2024: EUR 2,332 million), representing 58% of total assets (December 31, 2024: 62%). Of this amount, EUR 887 million related to current and non-current lease liabilities (December 31, 2024: EUR 959 million), primarily attributable to rental agreements of retail store locations as well as logistics and administrative properties. Current and non-current financial liabilities totaled EUR 296 million at the end of fiscal year 2025 (December 31, 2024: EUR 297 million). Net Assets, Notes to the Consolidated Financial Statements, Notes 9 and 20