Business Activities and Group Structure

Business activities

HUGO BOSS, headquartered in Metzingen (Germany), is a leading global fashion and lifestyle company in the premium segment, offering high-quality women’s and men’s apparel, shoes, and accessories. The Company pursues a portfolio strategy, with the HUGO BOSS platform currently consisting of two globally renowned brands – BOSS and HUGO. Both brands are clearly distinguished by individual characteristics such as design and fit. At the same time, they share equally high standards in terms of quality, innovation, and sustainability, while ensuring that consumers are perfectly dressed for every occasion. Our “CLAIM 5” strategy is closely linked to our vision of being the leading premium tech-driven fashion platform worldwide. At the same time, we aim to strongly drive brand relevance and market share gains. In fiscal year 2024, HUGO BOSS generated sales of EUR 4.3 billion (2023: EUR 4.2 billion). Group Strategy

With BOSS, we appeal to consumers who lead a self-determined life, show a clear attitude, and pursue ambitions with determination, embodying the motto – “Be your own BOSS.” As a 24/7 lifestyle brand, BOSS offers the perfect outfit for every occasion – from the office and formal events to leisure and sport. In this context, the brand operates four distinct brand lines. The largest, BOSS Black, focuses on modern tailoring and smart casualwear for men and women, while the exclusive BOSS Camel line, introduced in 2022 for menswear, emphasizes high-end tailoring heritage. Casualwear products are mostly covered under BOSS Orange, while BOSS Green focuses on athleisurewear designed for an active lifestyle. Further strengthening its casualwear offering – which BOSS has gradually expanded in recent years – remains a key focus area to attract new, younger customers. At the same time, BOSS is committed to continuing to dominate formalwear by driving innovation and offering a superior price-value proposition.

FOCUS on Brand Heat

We strive to making every moment with BOSS and HUGO unforgettable. By deepening customer connections and creating bold brand experiences, we’re shaping the future of our brands.

Learn more Learn more

HUGO targets consumers who consider their way of dressing as an expression of their individual personality – clearly representing the motto “HUGO your way.” The brand focuses on a broad range of both commercial and contemporary products, reflecting its authentic and unconventional style. In this context, HUGO introduced its new HUGO Blue brand line in early 2024, which puts a strong emphasis on seizing business opportunities in denimwear. Group Strategy, “Product is Key”

In addition to a broad product offering within the seasonal BOSS and HUGO collections, inspiring capsule collections and collaborations with well-known brands and personalities increase the relevance of both brands. In doing so, we aim to appeal primarily to a younger audience, above all millennials with BOSS and Gen Z with HUGO. To fuel brand heat while driving customer engagement, we pursue two clearly distinguished marketing strategies, with a strong focus on social media. In this context, we put a particular emphasis on global star-studded campaigns as well as exciting brand events. Group Strategy, “Boost Brands,” “Product is Key”

Design and development of our brands’ collections is mainly carried out at our headquarters in Metzingen (Germany), while our development centers in Coldrerio (Switzerland) and Morrovalle (Italy) are responsible for specific product groups. In addition, we have granted licenses for the development and distribution of products including fragrances, eyewear, watches, and children’s fashion. To increase speed-to-market capabilities and shorten the product development process, the majority of our products are now developed digitally. Product Development and Innovation

In fiscal year 2024, HUGO BOSS produced 20% of its total sourcing volume at its own facilities (2023: 17%). Our five own production sites are all located in Europe, with Izmir (Turkey) contributing the largest share of production. In 2024, 80% of our global sourcing volume was sourced from external contract suppliers or procured as merchandise (2023: 83%). Partner operations are mainly located in Asia and Europe. Business Operations, Combined Non-financial Statement, Workers in the Value Chain

We aim to offer our customers a seamless brand experience across all consumer touchpoints, spanning brick-and-mortar retail, brick-and-mortar wholesale, and digital channels. Overall, consumers can experience and purchase BOSS and HUGO products at more than 8,000 brick-and-mortar points of sale globally (2023: around 7,800). At the same time, customers from 74 markets can shop our products online via hugoboss.com (2023: 73 markets). Group Strategy, “Drive Omnichannel,” Consumer Touchpoints

BOSS and HUGO products are distributed across 129 countries (2023: 131 countries), with our distribution activities divided into three sales regions. EMEA, covering Europe, the Middle East, and Africa, represents by far the largest region in terms of Group sales with a share of 61% in 2024 (2023: 61%). The Americas and Asia/Pacific account for 24% and 13% of sales (2023: 23% and 14%), respectively, while the remaining 3% are generated within our licensing business (2023: 2%). Earnings Development, Sales and Earnings Development of the Business Segments

Digitalization represents a key enabler for implementing our Company’s vision of being the leading premium tech-driven fashion platform worldwide. Fully aligned with our strategic claim “Lead in Digital,” we continue to drive the digitalization of our business activities and leverage the power of artificial intelligence along the entire value chain. The HUGO BOSS Digital Campus is at the heart of our digital activities, focused on expanding our digital analytics capabilities, strengthening our global online activities, and driving meaningful insights and efficiencies along our value chain. With regards to the latter, we are pushing ahead with our important Digital TWIN initiative, a tech-driven business operations platform intended to further increase the flexibility and transparency of our supply chain. Group Strategy, “Lead in Digital,” “Organize for Growth,” Business Operations

At HUGO BOSS, we are committed to protecting our planet and ensuring a livable future for generations to come. We therefore attribute high importance to sustainability, which is essential to our corporate responsibility and business activities. Our sustainability strategy aims to make a vital contribution to a planet free of waste and pollution. It ensures that our products are produced with social and environmental responsibility while maintaining the high quality and durability of our collections. Our ambitious sustainability targets are integral to our business and are firmly anchored in our “CLAIM 5” strategy. In doing so, we put consumers and their sustainability expectations at the core of all our activities. Group Strategy, “Sustainable Throughout,” Combined Non-financial Statement

FOCUS on Sustainability

To reduce our environmental footprint and drive sustainable change, we focus on better materials and embrace circularity.

Learn more Learn more

We aim to work with the best talents in the sector. To maintain our positioning as one of the most attractive employers in the fashion industry, human resource (HR) management at HUGO BOSS is dedicated to attracting, retaining, and developing top talent. At the same time, we are convinced that the passion and dedication of our more than 18,500 employees worldwide play a crucial role in the successful execution of “CLAIM 5” (2023: around 19,000). A strong commitment to empowering people and teams is therefore firmly anchored in our strategy, guided by our five HUGO BOSS values entrepreneurial spirit, personal ownership, team mentality, simplicity & quality, and youthful spirit. Combined Non-financial Statement, “Own Workforce”

Group structure

All key management functions are based at our headquarters in Metzingen. The Group is managed by its parent company HUGO BOSS AG, a German stock corporation operating under a dual management and control structure. Consequently, the Managing Board is responsible for managing the Group and successfully executing the Group strategy. The activities of the Managing Board are monitored by the Supervisory Board, which is also on hand to advise the Managing Board. In addition to HUGO BOSS AG, the Group consists of 60 consolidated subsidiaries bearing responsibility for their respective local business activity. This includes 39 subsidiaries functioning as distribution companies and four subsidiaries dedicated to production. Notes to the Consolidated Financial Statements, Basis of Consolidation

HUGO BOSS is structured by region, with our business segments being EMEA, the Americas, Asia/Pacific, and the license business.

The functions established in the central departments of HUGO BOSS AG cover key parts of the value chain, particularly the design and creative management, product development, production, sourcing, and distribution of our collections to the respective markets. Our “CLAIM 5” strategy is designed and successfully executed on a market-level in order to ensure strong customer focus and respond dynamically to market-specific developments. The individual markets are grouped into hubs, with local management reporting directly to the Chief Sales Officer (CSO). In doing this, we ensure close alignment between individual markets and central functions as well as short decision-making processes. In addition, certain functions are pooled in the hubs and in the central departments across markets to make the most effective use of specialist skills and to generate cost benefits.