Illustration of opportunities

HUGO BOSS remains fully committed to leveraging its business opportunities across brands, channels, and regions. For fiscal year 2026, the Company has identified several key opportunities arising from the corporate environment, its Group strategy, and operational execution. Opportunities identified in the risk and opportunity management process with at least essential potential impact on HUGO BOSS are detailed below in descending order of their potential financial impact. In contrast, opportunities with a low to moderate potential financial impact are not discussed.

Opportunities related to suppliers and sourcing

As part of its global sourcing and production activities, HUGO BOSS fosters a robust and efficient operational infrastructure supporting its long-term growth ambitions. As part of CLAIM 5 TOUCHDOWN, we aim at further increasing the resilience, efficiency, and flexibility of our global sourcing and production networks. In particular, HUGO BOSS puts a strong focus on maintaining a resilient supplier network by fostering strong supplier relationships and collaboration. At the same time, the Company seeks to realize even greater economies of scale via a further optimization of vendor allocation and strategic price negotiations, supported by increased order volumes. The Company may also benefit from a short-term decrease in commodity prices for raw materials such as cotton, wool, and leather. To actively drive additional economies of scale, the Company aims to further streamline its raw material sourcing across fabrics and trimmings, balancing focus and diversification to ensure both cost efficiency and supply stability. With regards to the latter, HUGO BOSS is implementing its Digital TWIN, a smart and tech-driven business operations platform. The Digital TWIN is expected to strongly enhance real-time data utilization going forward, further improving demand and logistics planning, inventory allocation, and transparency within our supply chain. Greater-than-expected successes in these areas may have a direct positive impact on the sales and earnings performance of HUGO BOSS. Business Operations

Opportunities related to sales and distribution

As a global fashion and lifestyle company, and in line with its omnichannel approach, HUGO BOSS has built a strong physical and digital distribution footprint in recent years. By ensuring a seamless brand experience across all consumer touchpoints, we aim to further advance our omnichannel activities in the coming years. Under CLAIM 5 TOUCHDOWN, HUGO BOSS will leverage the successful transformation of its own retail business as part of CLAIM 5, with the store network largely refreshed and new BOSS and HUGO store concepts implemented across key markets. To exploit the full potential of its brick-and-mortar retail business, HUGO BOSS will continue to elevate its own store portfolio to enhance the customer experience. At the same time, we aim to optimize our store network to improve both sales productivity and retail efficiency. Key measures include the renegotiation of expiring rental contracts and the selective closure of underperforming stores. At the same time, we will continue to foster strategic partnerships in brick-and-mortar wholesale, while adopting a more selective distribution approach. This includes focusing on the most relevant partners and further sharpening product assortments to strengthen brand equity. In line with CLAIM 5 TOUCHDOWN, the Company will also further expand its global franchise business, particularly in emerging markets, to capitalize on regional growth opportunities. With regards to our digital business, we aim to unlock additional opportunities by advancing seamless brand and customer experiences across platforms, supported by captivating content and consistent brand storytelling. At the same time, we will further amplify our two-brand strategy on hugoboss.com to enhance the customer experience and reinforce clear assortment guidelines across all touchpoints. Greater-than-expected success in the execution of these initiatives could have a direct positive impact on the business performance of HUGO BOSS.

In addition, HUGO BOSS will continue to put strong emphasis on retaining and engaging its most valuable customers. Already in 2024, we launched our loyalty program HUGO BOSS XP, a hyper-personalized omnichannel member experience. The program is designed to build brand loyalty, boost member sales, and drive customer lifetime value. HUGO BOSS XP was first rolled out in the UK, Germany, and France, and was expanded to the U.S. and China in 2025. Supported by this broader rollout and increasing customer engagement, we successfully expanded our member base by around 20% in 2025, reaching more than 13 million members at the end of fiscal year 2025 (2024: more than 10 million). To further deepen and expand our existing customer relationships, but also attract new BOSS and HUGO customers, we will further expand the program in the coming years. Effectively leveraging these opportunities can directly enhance HUGO BOSS’ business performance. Consumer Touchpoints

Personnel opportunities

At HUGO BOSS, we are convinced that the passion and dedication of our employees are vital for long-term business success. Our Human Resources management focuses on attracting, retaining, and developing the best talent in the fashion industry, while putting a strong emphasis on further enhancing our attractiveness as an employer. Maintaining competitive compensation, additional benefits, and an attractive working environment is intended to further strengthen our position in international competition, enabling the Company to efficiently fill vacant positions with qualified candidates and fostering motivation, commitment, and employee loyalty. Greater-than-expected success in these areas could enhance workforce stability and productivity, thereby supporting operational efficiency and having a positive impact on the sales and earnings performance of the Company.

As an international company, diversity, equity, and inclusion (DE&I) form a cornerstone of our corporate culture. We are convinced that diverse and inclusive teams are better positioned to develop creative and effective solutions to complex challenges and to support the successful execution of our Group strategy. Consequently, HUGO BOSS has implemented numerous initiatives to ensure a discrimination-free working environment with equal opportunities and inclusive work culture for all employees. Greater-than-expected progress in advancing DE&I may further increase employee satisfaction and engagement, strengthen the Company’s employer brand, and enhance its ability to attract talent, which could, in turn, positively influence business performance. Combined Non-financial Statement, Own Workforce

Opportunities related to brand heat and product offering

In fiscal year 2026, the successful execution of our strategy CLAIM 5 TOUCHDOWN will be key. In this context, we are fully committed to driving brand excellence by further elevating BOSS and HUGO and by deepening customer engagement. As part of our marketing activities, we will continue to put strong emphasis on strategic partnerships like Beckham x BOSS as well as impactful, product-led campaigns to strengthen the position of BOSS and HUGO as truly desired global brands. Further strengthening brand equity and deepening consumer connections can have a positive impact on demand and thus drive sales as well as full-price sell-through, potentially resulting in higher-than-expected revenue and earnings development. Group Strategy, Brand Excellence

At the same time, we will keep optimizing our product assortment in the coming years. The introduction of a new organizational setup with two dedicated powerhouses for menswear and womenswear is expected to unlock meaningful synergies across BOSS and HUGO, improve speed-to-market, and strengthen gender-specific expertise, thereby enhancing the overall effectiveness of brand and product management. BOSS Menswear will continue to capitalize on its strong 24/7 lifestyle positioning across a clearly differentiated portfolio. In this context, we see particular growth opportunities across our BOSS Green and BOSS Camel brand lines, while we also remain committed to further capitalizing on product categories such as shoes, accessories, and bodywear. Fully leveraging our 24/7 lifestyle is expected to support the reinforcement of our leading position in the upper premium apparel market. At the same time, the new organizational structure creates a strong foundation to sustainably improve the long-term performance of BOSS Womenswear and HUGO. By sharpening its brand identity and focusing on a curated assortment of essential products, BOSS Womenswear aims to increase relevance among female consumers. The refined positioning of HUGO, combined with a stronger emphasis on contemporary tailoring, is expected to enhance commercial relevance and broaden its consumer base over time. Faster-than-expected progress in executing these initiatives could positively support the sales and earnings development. Group Strategy, Brand Excellence

On top of that, HUGO BOSS will continue to leverage the potential of further digitalizing its product development, including the use of AI-powered trend detection and virtual try-ons with avatars. In addition, we also aim to improve efficiency and drive greater economies of scale by further reducing complexity across our product offerings. This should enable us to maintain premium quality as well as a high level of innovation and sustainability, while also growing units-per-style and lowering product costs. HUGO BOSS also incorporates risk criteria into its product development, as this can have a direct positive impact on its business performance. Further improvements in product quality, for example, may reduce return rates and thus directly support sales development. Business Operations

Global economic and currency opportunities

HUGO BOSS may benefit from positive macroeconomic developments and their potential impact on consumer sentiment and buying behavior. For example, a faster-than-expected normalization of global inflation and interest rates, a stronger than expected rebound in global trade and investment flows, or the reduction of trade barriers, such as tariffs, as well as the successful conclusion of free trade agreements, could lead to higher economic growth and thus to a noticeable uplift in global consumer sentiment. This, in turn, could have a positive impact on global demand for premium apparel and accessories. In addition, evolving social trends that support the upper premium apparel market could further support the top-line performance and full-price sell-through of HUGO BOSS, regardless of broader consumer sentiment trends. At the same time, regulatory and legal developments may also present opportunities, including a more consistent prosecution and enforcement of trademark rights. On top of that, favorable exchange rate developments can have a positive impact on earnings development. In this context, the Group Treasury department continuously monitors the market environment and identifies relevant opportunities within the Company’s financial management principles. Financial Position

Opportunities related to digitalization and artificial intelligence (AI)

Digitalization and the systematic application of artificial intelligence (AI) represent a significant strategic opportunity for HUGO BOSS across the entire value chain. The Company already applies AI in several key areas and continuously tests new solutions to unlock efficiency gains and improve decision-making for both customers and employees. AI-enabled technologies are being integrated end-to-end, from product design and development to merchandising and inventory management. Applications such as AI-driven 3D prototyping, replenishment recommendations, and dynamic pricing models are expected to accelerate processes, improve planning accuracy, and optimize resource utilization. In omnichannel and customer-facing activities, AI-supported content creation, chatbots, and sales training tools contribute to an enhanced and more personalized shopping experience. In this context, more effective AI-supported interactions can further improve customer service, enable more meaningful engagement, and foster long-term customer loyalty. Beyond that, AI tools support backend processes across the organization, increasing speed and efficiency in a wide range of business tasks. Overall, faster-than-expected progress in the adoption and scaling of AI applications could positively impact operational efficiency, innovation capability, and ultimately the sales and earnings performance of HUGO BOSS.