HUGO BOSS FOCUSES ON CLAIM 5 TOUCHDOWN EXECUTION IN Q1 – 2026 OUTLOOK REAFFIRMED AMID VOLATILE ENVIRONMENT

Metzingen, May 5, 2026

Q1 2026 developments

• Group sales decline 6%¹ to EUR 905 million (Q1 2025: EUR 999 million), reflecting the deliberate brand and channel realignment under CLAIM 5 TOUCHDOWN
• Q1 performance of BOSS (–3%) and HUGO (–21%) affected by targeted actions to strengthen long-term brand equity
• Sales performance in EMEA (–8%) and the Americas (–5%) is shaped by execution of strategic measures; Asia/Pacific returns to growth (+1%)
• Performance in retail (–3%) and wholesale (–10%) reflects continued focus on distribution excellence, including more selective assortments and partner network optimization
• Gross margin improves by 110 basis points to 62.5%, mainly driven by sourcing efficiencies
• Operating expenses decrease by 4%, reflecting lower selling and marketing expenses
• EBIT amounts to EUR 35 million, resulting in an EBIT margin of 3.9% (Q1 2025: EUR 61 mil­lion; 6.1%); earnings per share total EUR 0.24 (Q1 2025: EUR 0.51)
• Free cash flow before leases notably increases to EUR 33 million (Q1 2025: minus EUR 66 million), supported by a reduction in inventory levels (–13% year over year)

Outlook 2026

• 2026 marks deliberate realignment and refocus under CLAIM 5 TOUCHDOWN, further elevating BOSS and HUGO and laying the foundation for sustainable, profitable growth
• Strategic focus on brand, distribution, and operational excellence to further strengthen the quality of the business
• Macroeconomic and geopolitical environment to remain volatile, with recent developments in the Middle East adding further uncertainty
• Full-year 2026 outlook reaffirmed: currency-adjusted Group sales to decline mid- to high-single digits; EBIT to range between EUR 300 million and EUR 350 million

¹ All revenue-related growth rates are on a currency-adjusted basis.

Daniel Grieder, Chief Executive Officer of HUGO BOSS: “Following our successful finish to 2025, we entered the year with a clear roadmap. However, the market environment has become more challenging over the course of the first quarter, caused by recent developments in the Middle East. Against this backdrop, we focused on what lies within our control and moved decisively into the execution phase of CLAIM 5 TOUCHDOWN. We made tangible progress in implementing our targeted brand and channel realignment, including streamlining product assortments and refining our global distribution footprint. As expected, these deliberate actions are reflected in our top-line performance and mark the first concrete steps in structurally refocusing the business and strengthening long-term earnings quality.

At the same time, we continued to invest in brand equity and relevance, including key high­lights such as the BOSS Fashion Show in Milan and the launch of our Spring/Summer 2026 collections, which resonated strongly with consumers. In parallel, we successfully leveraged sourcing efficiencies and pricing discipline to deliver a meaningful improvement in gross margin, and maintained cost discipline across the organization.

In light of our first-quarter performance, we reaffirm our full-year outlook for 2026. Against an increasingly challenging external backdrop, we remain firmly focused on executing our strategy, actively managing the business with flexibility and discipline. Our clear direction under CLAIM 5 TOUCHDOWN, combined with our strong focus on profitability and cash generation, underlines our confidence in creating long-term value for our shareholders.”

CLAIM 5 TOUCHDOWN – Update on Strategic Progress

Brand Excellence

• Brand relevance for BOSS and HUGO was further supported by mar­keting investments of 7.3% of sales. A key highlight was the BOSS Fashion Show in Milan, which placed BOSS among the top 10 most engaging brands during Milan Fashion Week.
• BOSS also marked the third BOSS by BECKHAM drop with exclusive activations in Berlin at BOSS Store Kurfürstendamm and a dedicated pop-up at KaDeWe, driving strong social media engagement.
• Beyond that, both brands launched their Spring/Summer 2026 collections in Q1. At HUGO, this was supported by a dedicated campaign under its new brand claim “Red Means GO.”
• A new organizational setup with two dedicated powerhouses for menswear and womens­wear was implemented, strengthening gender-specific expertise and marking a key milestone in the ongoing brand realignment of BOSS Womenswear and HUGO.

Distribution Excellence

• Brand loyalty was further strengthened in Q1, with the global member base growing by around 20% year over year to almost 14 million.
• The continued focus on distribution quality supported the Company’s underlying retail performance, with Q1 comparable brick-and-mortar sales only 2% below the prior-year level.
• As part of CLAIM 5 TOUCHDOWN, HUGO BOSS took decisive steps to enhance store productivity. This also includes the ongoing optimization of the Company’s distribution network, as reflected in the net closure of 15 freestanding stores globally, largely through expiring lease contracts.

Operational Excellence

• Sourcing efficiencies and improved pricing drove a 110-basis-point increase in gross margin to 62.5%, supported by continued optimization in freight modes, which resulted in a further reduction in the share of air freight.
• At 22.0% of Group sales, inventories in Q1 were 310 basis points below the prior-year level. This reflects the Company’s disciplined and targeted inventory management.
• Free cash flow before leases notably increased to EUR 33 million, driven by improved trade net working capital and continued capital expenditure discipline, with CapEx at 3.2% of sales.

Q1 sales development

• In the first quarter of 2026, HUGO BOSS entered the execution phase of its
  CLAIM 5 TOUCHDOWN strategy. In this context, the Company implemented key strategic initia­tives to strengthen long-term brand value for BOSS and HUGO, while further refining assortments and enhancing distribution quality across channels. 
• Macroeconomic and geopolitical volatility remained elevated in the three-month period. While global consumer sentiment stayed muted throughout the quarter, the conflict in the Middle East led to a notable decline in store traffic in the region from March onwards, resulting in a negative impact of around 1% on Group sales in the first quarter.
• Against this backdrop, currency-adjusted Group sales decreased by 6% in the first quarter of 2026. In Group currency, sales were down 9% to EUR 905 million (Q1 2025: EUR 999 mil­lion), reflecting negative currency effects.

Q1 sales development by brand

• Currency-adjusted revenues for BOSS declined by 3% in Q1. While key brand initiatives continued to support overall brand momentum, performance was shaped by strategic actions to strengthen brand equity over the long term, particularly in Womenswear. At the same time, Menswear proved more resilient during the quarter supported by casualwear-oriented product assortments.
• At HUGO, currency-adjusted revenues were 21% below the prior-year level. This develop­ment reflects the continued strategic repositioning of the brand under
  CLAIM 5 TOUCHDOWN, with a clear focus on sharpening its identity around contemporary tailoring. As part of this process, HUGO is streamlining its product offering into one over­arching brand line, supporting a focused and consistent assortment across wearing occasions.

Q1 sales development by segment

• In EMEA, currency-adjusted revenues declined by 8% in the first quarter, with similar trends across key markets such as Germany, France, and the UK. This development reflects ongoing muted consumer sentiment, as well as initial progress in implementing targeted enhancements to distribution quality. Despite a solid start to the year, revenues in the Middle East declined by a low double-digit rate, reflecting a substantial decline in store traffic in March following geopolitical developments.
• In the Americas, currency-adjusted revenues remained 5% below the prior-year level. This performance largely reflects a mid-single-digit sales decline in the U.S. market related to the execution of CLAIM 5 TOUCHDOWN, while sales in Latin America also declined slightly.
• In Asia/Pacific, currency-adjusted revenues increased slightly by 1% in the first quarter, driven by a return to growth in China and continued improvements in Southeast Asia & Pacific. The latter was supported by a robust revenue increase in Japan.
• Sales in the license business remained at the prior-year level, supported by stable revenues in fragrance.

Q1 sales development by channel

• In the Group’s retail business (including brick-and-mortar and self-managed digital touchpoints), currency-adjusted revenues declined by 3%. This primarily reflects persistently subdued traffic trends as well as the Company’s strategic focus on further optimizing its distribution network, including the closure of selected points of sales. Consequently, brick-and-mortar retail sales on a comparable basis proved slightly more resilient, decreasing by 2%. Revenues generated via self-managed digital channels (hugoboss.com and online concessions) declined 5% currency-adjusted to EUR 72 million (Q1 2025: EUR 78 million). This develop­ment reflects the Company’s strategic focus on prioritizing full-price sales as part of CLAIM 5 TOUCHDOWN. 
• Sales in the wholesale business (including brick-and-mortar and digital wholesale) declined 10% currency-adjusted. This reflects the Company’s strategic focus on enhancing distribution quality by implementing a more selective partner and assortment approach, alongside a more cautious order behavior. In addition, performance was negatively impacted by a timing shift of deliveries of around EUR 20 million from the first quarter of 2026 into the fourth quarter of 2025.

Q1 earnings development

• In the first quarter of 2026, gross margin improved by 110 basis points to 62.5%. This development was primarily driven by sourcing efficiencies and improved pricing. A more favorable channel mix provided minor additional support.
• In the first quarter of 2026, HUGO BOSS drove further efficiency improvements across the organization. As a result, operating expenses remained 4% below the prior-year level. As a percentage of sales, operating expenses were 330 basis points higher year over year, reflecting operating deleverage amid lower revenues.
• Selling and marketing expenses were 7% below the prior-year level, reflecting focused cost management in the three-month period. As a percentage of Group sales, they increased 120 basis points to a level of 45.3% (Q1 2025: 44.2%). Within this, selling expenses in own retail declined by 9% to EUR 215 million, representing 23.8% of Group sales (Q1 2025: EUR 237 million; 23.8%), mainly reflecting structurally improved cost levels aligned with overall traffic trends. Marketing investments remained 15% below the prior year, amounting to EUR 66 million (Q1 2025: EUR 79 million). While
  HUGO BOSS continued to drive brand heat through key initiatives, including major campaigns and events during the three-month period, lower marketing investments primarily reflect enhanced marketing effectiveness as well as a more balanced phasing over the year. As a result, marketing investments added up to 7.3% of Group sales (Q1 2025: 7.9%).
• Administration expenses increased by 8%, reflecting a particularly low prior-year comparison base as well as ongoing digital investments, while underlying cost discipline remained in place. As a percentage of sales, administration expenses amounted to 13.2% (Q1 2025: 11.1%).
• As a result, operating profit (EBIT) declined by 42%, translating into an EBIT of EUR 35 million in the first quarter of 2026. Accordingly, the Group’s EBIT margin decreased by 220 basis points to 3.9%, as improvements in gross margin were more than offset by operating deleverage.
• Consequently, net income amounted to EUR 18 million, down 51% against the prior-year level. Net income attributable to shareholders decreased by 52% to EUR 17 million, resulting in earnings per share of EUR 0.24.

Trade net working capital

• Trade net working capital (TNWC) decreased by 10% currency-adjusted, primarily driven by a reduction in inventories. The latter were down 13% currency-adjusted year-over-year. As a percentage of Group sales, inventories stood at 22.0%, and thus also well below the prior-year level (March 31, 2025: 25.1%). This reflects the Company’s disciplined and targeted measures to optimize its inventory position. The moving average of TNWC as a percentage of sales based on the last four quarters amounted to 19.8% (March 31, 2025: 19.7%).

Outlook

• For HUGO BOSS, fiscal year 2026 represents an important step in its journey toward long-term profitable growth. As part of CLAIM 5 TOUCHDOWN, the year is characterized by the continued execution of deliberate brand and channel realignment initiatives, designed to elevate BOSS and HUGO and further strengthen their long-term positioning.
• At the same time, the Company remains vigilant with regard to the macroeconomic and geopolitical environment, which continues to be characterized by elevated volatility. Recent developments in the Middle East are adding further uncertainty, causing significant disruption to regional demand and retail activity within the industry. The Company closely monitors the situation as well as broader implications for global consumer sentiment. In fiscal year 2025, the Middle East accounted for approximately 3% of Group revenues.
• Against this backdrop, Management will continue to prioritize profitability, cash generation, inventory discipline, and flexibility over short-term sales growth.
• Following the first-quarter performance, HUGO BOSS reaffirms its outlook for fiscal year 2026.
• In light of the targeted brand and channel realignment, currency-adjusted Group sales are expected to decline mid- to high-single digits in 2026 (2025: EUR 4,270 million), with currency effects expected to represent a moderate headwind to reported Group sales.
• Reflecting the anticipated top-line development, EBIT is expected to amount to between EUR 300 million and EUR 350 million in 2026 (2025: EUR 391 million). While targeted gross margin improvements and continued cost discipline are expected to support the bottom-line development, operating expenses are anticipated to deleverage in 2026 due to lower revenues.
• In fiscal year 2026, TNWC is anticipated to trend around the upper end of the Company’s mid-term target range of between 18% to 20% of Group sales (2025: 20.0%), as outlined in CLAIM 5 TOUCHDOWN.
• At the same time, capital expenditure is expected to further normalize, with investment intensity in 2026 anticipated to be around the upper end of the mid-term target range of 3% to 4% of Group sales (2025: 4.6%).
• The outlook remains subject to continued macroeconomic and geopolitical uncertainty, as well as the further development of global consumer sentiment.
• Further information on the outlook for fiscal year 2026 can be found in the Annual Report 2025.

Financial calendar and contacts

May 21, 2026
Annual General Meeting

August 4, 2026
Second Quarter Results 2026 & First Half Year Report 2026

November 3, 2026
Third Quarter Results 2026

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