HUGO BOSS DELIVERS SALES AND EARNINGS GROWTH IN Q2 AND CONFIRMS 2025 OUTLOOK

Quarterly Statement for Q2 2025
Metzingen, August 5, 2025

Q2/H1 2025 developments

• HUGO BOSS achieves revenue improvements in the second quarter (Q2: +1%; H1: 0%)¹ against ongoing challenging market environment
• Execution of key brand and product initiatives supports top-line momentum, including successful launch of first Beckham X BOSS collection
• EMEA (Q2: +3%; H1: +1%) and the Americas (Q2: +2%; H1: +1%) return to growth; muted consumer sentiment in China weighs on performance in Asia/Pacific (Q2: –5%; H1: –7%)
• Solid growth in digital (Q2: +7%; H1: +5%) and brick-and-mortar wholesale (Q2: +3%; H1: 0%); momentum in brick-and-mortar retail improves slightly (Q2: –1%; H1: –2%)
• Gross margin remains stable year over year, as further efficiency gains in sourcing
  compensate for adverse channel mix effects and overall market headwinds
• Operating expenses are below the prior-year level (Q2: –3%; H1: –2%), reflecting ongoing strict cost discipline and additional efficiency gains across key business areas
• EBIT returns to growth (Q2: +15%; H1: +2%), resulting in an EBIT margin increase of
  120 basis points to 8.1% in Q2 (H1: +20 bp to 7.1%)
• Robust growth in EPS (Q2: +27%; H1: +9%) supported by improvements in financial result

Outlook 2025

• Full-year outlook confirmed: reported Group sales to remain broadly stable (–2% to +2%); EBIT to increase by +5% to +22%, with EBIT margin targeted between 9.0% and 10.0%
• Macroeconomic volatility to remain elevated, fueled by ongoing tariff uncertainty;
  subdued global consumer sentiment continues to weigh on industry development
• Key strategic initiatives to support business performance in H2, including launch of new
  brand campaigns and BOSS Fashion Show in Milan
• Ongoing strong focus on sustainable cost efficiency to drive profitability improvements also in the second half of 2025

¹ Revenue-related growth rates shown in brackets are on a currency-adjusted basis.

Daniel Grieder, Chief Executive Officer of HUGO BOSS: “The second quarter of 2025 was once again marked by a challenging macroeconomic and industry environment, with global consumer confidence remaining at a low level. Against this backdrop, we delivered solid top- and bottom-line improvements, supported by further efficiency gains through our rigorous and sustainable cost discipline. Importantly, we remain committed to our long-term ambition of strengthening brand relevance over short-term gains. The successful launch of our Beckham X BOSS collection in April is just one example of how we are continuing to drive brand momentum, even in a volatile environment. 

Based on our performance in the first half of 2025, we confirm our full-year outlook for both sales and operating profit. As we enter the second half of the year, our focus remains on exciting consumers, unlocking additional business opportunities and maintaining a consistent focus on high-quality growth. I am particularly excited about our upcoming Fall/Winter 2025 collections and the launch of our new brand campaigns later this month, which are set to further boost brand relevance.

While we remain vigilant in monitoring macroeconomic developments, including the ongoing tariff discussions, our focus remains on what we can control. Building on four consecutive quarters of strict cost discipline, we are well positioned to drive further sustainable efficiencies. By intensifying our focus on fixed cost management and maintaining disciplined execution, we are confident of strengthening our profitability in the quarters ahead. At the same time, we will not compromise on our long-term strategy of further investing into our brands, product quality, distribution excellence, and our strong operational platform.

Looking ahead, we remain confident in the great potential of our brands and our business model. By continuing to invest in brand-building initiatives, strengthening global relevance, and fostering customer loyalty, we are reinforcing our commitment to long-term profitable growth and creating sustainable value for our shareholders.”

Q2 sales development

• The second quarter of 2025 was characterized by persistent macroeconomic and geopolitical uncertainty, which noticeably dampened consumer sentiment and industry development globally. Muted consumer confidence and softer store traffic weighed on several key markets, with demand in China remaining particularly subdued.
• Against this backdrop, HUGO BOSS remained focused on advancing key brand, product, and sales initiatives. As a result, top-line momentum picked up in the second quarter, with currency-adjusted Group sales growing 1%. In Group currency, revenues declined by 1% to EUR 1,002 million (Q2 2024: EUR 1,015 million), reflecting unfavorable currency developments.
• Consequently, currency-adjusted Group sales for the first half of 2025 were on par with the prior year. In Group currency, revenues declined by 1% in the first half year, totaling EUR 2,000 million (H1 2024: EUR 2,029 million).

Q2 sales development by brand

• Amid the challenging market environment, HUGO BOSS successfully leveraged the robust positioning of its BOSS Menswear business. A particular highlight was the successful launch of the first Beckham X BOSS collection in April, which fueled consumer engagement and drove robust sell through. Consequently, currency-adjusted revenues for BOSS Menswear expanded by 5% in the second quarter, demonstrating the brand's resilience and appeal even in a volatile environment.
• At the same time, HUGO BOSS has taken proactive steps to strengthen the long-term performance of BOSS Womenswear and HUGO. Strategic initiatives, such as streamlining the product assortment and refining sales activities, are designed to enhance efficiency and drive sustainable growth. As a result, currency-adjusted sales for BOSS Womenswear decreased 8% in the second quarter, while at HUGO they were down 12%.

Q2 sales development by segment

• In EMEA, sales returned to growth, increasing by 3% currency-adjusted in the second quarter. This performance was primarily driven by revenue gains in Germany and France, which more than offset a slight decline in the UK.
• Momentum in the Americas also improved, with currency-adjusted sales up 2%. This mainly reflects a modest revenue increase in the U.S. market, where demand strengthened following a softer start to the year. At the same time, HUGO BOSS maintained its robust growth trajectory in Latin America.
• In Asia/Pacific, sales decreased 5% currency-adjusted, reflecting persistently subdued demand in China. Revenues in Southeast Asia & Pacific remained on par with the prior-year level, supported by a solid performance in Japan.
• Sales in the license business declined by 9%, primarily reflecting a tough prior-year comparison that had benefited from a contract renewal in the eyewear segment. At the same time, the ongoing strong performance of the fragrance business provided underlying support.

Q2 sales development by channel

• In the Group’s brick-and-mortar retail business (including freestanding stores, shop-in-shops, and outlets), currency-adjusted revenues were 1% below the prior year. While this reflects a modest improvement compared to the first quarter, overall muted consumer sentiment continued to dampen store traffic in key markets.
• Currency-adjusted sales in brick-and-mortar wholesale were up 3% in the second quarter, driven by the successful delivery of the current Summer and Fall 2025 collections to partners. In addition, the ongoing expansion of the Company’s global franchise business also had a slightly positive impact.
• The Group’s digital business continued its growth trajectory also in the second quarter, with currency-adjusted sales up 7%. Growth was primarily driven by an increase in digital sales generated with partners.

Q2 earnings development

• At 62.9%, the gross margin in the second quarter of 2025 remained on the prior-year level. Continued efficiency gains in sourcing, coupled with more favorable product costs, provided tailwinds to gross margin development. This compensated for various market headwinds, including adverse channel mix effects, unfavorable currency effects, and an overall promotional market environment.
• In the second quarter, operating expenses declined 3%, improving by 120 basis points to 54.8% of Group sales. This progress highlights the continued success of the Company’s cost-efficiency measures, including the streamlining of non-strategic spending in key business areas such as sales, marketing, and administration. Consequently, operating expenses for the first half of 2025 decreased by 2%, amounting to EUR 1,100 million
  (H1 2024: EUR 1,121 million).
  • Selling and marketing expenses were down 4% in the second quarter, reflecting efficient cost management, in particular in brick-and-mortar retail. As a percentage of sales, selling and marketing expenses improved by 110 basis points to a level of 43.2% (Q2 2024: 44.4%). As part of that, selling expenses for the Group’s brick-and-mortar retail business decreased noticeably by 6% to EUR 224 million, thus improving to a level of 22.4% of Group sales (Q2 2024: EUR 238 million; 23.4%). At the same time, marketing investments declined 10% year over year to EUR 73 million (Q2 2024: EUR 82 million), mainly reflecting timing shifts. Consequently, at EUR 152 million, marketing investments in the six-month period remained largely stable year over year, representing 7.6% of Group sales (H1 2024: EUR 158 million; 7.8%).
  • Administration expenses declined by 2% in the second quarter, supported by ongoing strict overhead cost management. As a percentage of sales, administra­tion expenses came in broadly at the prior-year level, amounting to 11.5% (Q2 2024: 11.6%).
• Driven by the Company’s rigorous focus on fostering cost efficiency, operating profit (EBIT) was up 15%, amounting to EUR 81 million in the second quarter. Accordingly, the Group's EBIT margin increased by 120 basis points to a level of 8.1%, reflecting cost leverage.
• At EUR 12 million, net financial expenses (financial result) came in 27% below the prior-year level, mainly reflecting favorable currency effects in the three-month period.
• Consequently, net income amounted to EUR 50 million, expanding 28% compared to the prior-year level. Net income attributable to shareholders increased by 27% to
  EUR 47 million, resulting in earnings per share of EUR 0.68, also up 27% year over year.

Trade net working capital

• Trade net working capital (TNWC) increased by 5% currency-adjusted to EUR 839 million. This was mainly driven by a currency-adjusted increase of 7% in inventories compared to the prior year, largely reflecting higher goods in transit as well as an intentional increase in inventory coverage considering ongoing tariff uncertainty. Importantly, HUGO BOSS remains confident in the quality and composition of its inventories, which predominantly consist of core and fresh merchandise for current and upcoming collections. While trade receivables also increased compared to the prior year, efficient management of trade payables contributed positively to TNWC development. The moving average of TNWC as a percentage of sales based on the last four quarters amounted to 19.7%, thus well below the level recorded in the prior-year period (June 30, 2024: 21.2%).

Outlook

• Looking ahead to the second half of 2025, HUGO BOSS remains fully committed to executing its strategic priorities. By unlocking additional growth opportunities and further enhancing brand relevance, the Company aims to support the top-line development throughout the remainder of the year. Simultaneously, HUGO BOSS is intensifying its focus on driving operational excellence and cost efficiency. By rigorously optimizing operating expenses – particularly in sales and administration – and by further leveraging its global sourcing activities, the Company is well positioned to unlock additional efficiency gains and drive bottom-line growth in the quarters ahead.
• Amid ongoing macroeconomic and geopolitical uncertainty, HUGO BOSS remains vigilant, closely monitoring external developments including currency volatility and the evolving tariff discussions. Thanks to its well-diversified global sourcing footprint and a range of proactive measures, the Company is confident in its ability to navigate this dynamic environment. These measures include increasing inventory coverage in the U.S. market, strategically rerouting product flows from China to alternative regions, and further optimizing the vendor base.
• Against the backdrop of the Company’s performance in the first half year and the tariff regime as of August 4, 2025, HUGO BOSS confirms its top- and bottom-line outlook for fiscal year 2025.
  • The Company continues to expect Group sales in reporting currency to remain broadly in line with the prior year (–2% to +2%), ranging between EUR 4.2 billion and EUR 4.4 billion in 2025 (2024: EUR 4.3 billion). In the EMEA region, HUGO BOSS continues to forecast sales in reporting currency to remain at around the prior-year level. In the Americas, sales in reporting currency are now also projected to remain at around the prior-year level (initial outlook: increase in the low single-digit percentage range), reflecting the recent devaluation of the U.S. dollar versus the euro. For Asia/Pacific, HUGO BOSS continues to anticipate sales in reporting currency to moderately decrease, reflecting ongoing weak consumer sentiment in the Chinese market.
  • At the same time, HUGO BOSS continues to anticipate profitability improvements in fiscal year 2025, supported by its ongoing focus on realizing additional sourcing efficiency gains, further driving marketing effectiveness, and maintaining high cost discipline. Consequently, operating profit (EBIT) is expected to increase to a level of between EUR 380 million and EUR 440 million (2024: EUR 361 million), with the EBIT margin forecast to improve to a level of 9.0% to 10.0% in 2025 (2024: 8.4%).
  • Trade net working capital (TNWC) as a percentage of sales is expected to remain at a level of between 19% and 20% in 2025 (2024: 19.6%).
  • Capital expenditure is forecast to range between EUR 200 million and EUR 250 million in 2025 (2024: EUR 286 million).
• Further information on the outlook for fiscal year 2025 as well as on key risks and opportunities, which have not changed materially compared to fiscal year 2024, can be found in the Annual Report 2024.

Financial calendar and contacts

November 4, 2025
Third Quarter Results 2025

If you have any questions, please contact:

Media Relations
Carolin Westermann
Senior Vice President Global Corporate Communications
Phone: +49 7123 94-86321
E-mail: carolin_westermann@hugoboss.com

Investor Relations
Christian Stöhr
Senior Vice President Investor Relations
Phone: +49 7123 94-87563
E-mail: christian_stoehr@hugoboss.com