HUGO BOSS AG

HUGO BOSS AG is the parent company of HUGO BOSS Group. Its annual financial statements are prepared in accordance with the provisions of HGB [“Handelsgesetzbuch”: German Commercial Code]. In addition to the operating business, the results of HUGO BOSS AG are predominately driven by the management of the central functions. A material item in this context is the allocation of costs for services rendered to Group companies.

Earnings development

Sales of HUGO BOSS AG primarily comprise brick-and-mortar retail, brick-and-mortar wholesale, and digital revenues generated in Germany, Austria, and Poland, as well as intercompany sales with its international subsidiaries.

In fiscal year 2025, revenues of HUGO BOSS AG remained broadly at the prior-year level. Revenues in EMEA remained largely on par with 2024 levels, supported by slight sales growth in Germany. The Americas, on the other hand, recorded robust top-line improvements in fiscal year 2025, which compensated for a decline in revenues with subsidiaries in Asia/Pacific. The latter is also related to an adjustment in intercompany pricing, reflecting current external market factors.

Performance across brands varied in 2025. BOSS recorded moderate top-line improvements, primarily driven by the strong positioning of its Menswear business. On the other hand, revenues at HUGO remained below the prior-year level, reflecting proactive measures taken to sharpen the brand’s positioning and enhance its long-term performance. Sales from other services also declined moderately compared to 2024, mainly due to lower intercompany charges to subsidiaries, particularly related to service and IT.

At 35.1%, the gross margin of HUGO BOSS AG remained on the prior-year level (2024: 35.1%). Distribution expenses also remained broadly on 2024 levels, while general administration expenses increased 9% year over year, mainly reflecting higher payroll cost and overall cost inflation. Other operating income and other operating expenses increased by 8% and 15%, respectively, mainly due to unfavorable currency effects. The income from investments of EUR 22 million is mainly attributable to an intragroup dividend income from an affiliated company in Turkey (2024: EUR 0 million). The income from profit and loss transfer agreements of EUR 79 million is attributable to HUGO BOSS Internationale Beteiligungs-GmbH (2024: EUR 94 million).

Net assets and financial position

Property, plant, and equipment, and intangible assets of HUGO BOSS AG increased by 7% year over year, totaling EUR 1,188 million (December 31, 2024: EUR 1,115 million). This development mainly reflects investments in the expansion of the Company’s headquarters in Metzingen (Germany), its distribution center for flat-packed goods in Filderstadt (Germany), and the Group-wide rollout of a next-generation ERP system. To a minor extent, the increase also reflects the merger of ROSATA Grundstücks-Vermietungsgesellschaft mbH & Co. Objekt Metzingen KG into HUGO BOSS AG, effective September 1, 2025.

The decrease in inventories mainly reflects disciplined inventory management alongside robust top-line momentum in the fourth quarter of 2025. HUGO BOSS AG is the main supplier for the Group’s global distribution companies. Trade receivables of HUGO BOSS AG came in above the prior-year level, mainly reflecting a strong performance in both brick-and-mortar and digital wholesale in the final quarter of 2025. At the same time, the Company recorded a decrease in trade payables, primarily reflecting lower order volumes as part of the Company’s measures to reduce core merchandise inflow going forward. Consequently, trade net working capital (TNWC) of HUGO BOSS AG ended fiscal year 2025 slightly below the prior-year level.

At EUR 105 million, receivables from affiliated companies at the end of fiscal year 2025 were 7% above the prior-year level (December 31, 2024: EUR 98 million). Liabilities to affiliated companies increased 11% to EUR 104 million, mainly driven by transfer pricing adjustments resulting in higher intercompany balances (December 31, 2024: EUR 94 million). Provisions remained broadly on the prior-year level, amounting to EUR 164 million at the end of the year (December 31, 2024: EUR 163 million). At EUR 218 million, liabilities to credit institutions were also broadly on the prior-year level (December 31, 2024: EUR 219 million).

As of December 31, 2025, cash and cash equivalents, defined as the total of cash on hand and bank balances, amounted to EUR 8 million (December 31, 2024: EUR 7 million), with the slight increase mainly reflecting a higher cash flow from operating activities.

Outlook, risks, and opportunities

Due to its close relationships with the Group companies and its relevance for the Group, the expectations for HUGO BOSS AG are largely reflected in the Group’s outlook. In this context, the net income of HUGO BOSS AG, which represents the Company’s key performance indicator, is expected to decrease moderately in fiscal year 2026. There are no specific particularities regarding HUGO BOSS AG. In addition, the business performance of HUGO BOSS AG is, to a large degree, also subject to the same risks and opportunities as those faced by the Group. Consequently, the statements within the Group’s Report on Risks and Opportunities also apply to HUGO BOSS AG. Outlook, Report on Risks and Opportunities