Comparison of Actual and Forecast Business Performance

Since its introduction in fiscal year 2021, HUGO BOSS has achieved substantial progress in executing its “CLAIM 5” strategy as reflected by significant achievements across all five strategic priorities. By stepping up investments into our brands, products, and consumer touchpoints, momentum for both BOSS and HUGO has accelerated noticeably, driving record sales for three consecutive years and market share gains. At the same time, as part of “CLAIM 5”, we have built a robust organizational and operational platform, laying the foundation for sustainable and profitable growth. This platform enables us to further enhance our operational execution, improve effectiveness, and realize efficiency gains across our business. Consequently, with “CLAIM 5”, we have successfully paved the way towards achieving our financial ambition of EUR 5 billion in sales and an EBIT margin of at least 12%.

At the same time, the global market environment deteriorated substantially in fiscal year 2024, with weakening consumer sentiment across most markets leading to a slowdown in industry growth. While the overall muted consumer confidence inevitably impacted the Company’s performance, resulting in a more moderate revenue increase compared to prior years, HUGO BOSS continued to benefit from the improved brand relevance of BOSS and HUGO. Consequently, Group sales grew by 3% to EUR 4.3 billion (2023: EUR 4.2 billion), both currency-adjusted and in Group currency. Throughout the year, we capitalized on important growth opportunities, further elevating brand relevance, enhancing product offerings, and deepening customer engagement. Highlights included the launch of successful 360-degree brand campaigns, the start of our partnership with David Beckham, and exciting brand events like the BOSS Spring/Summer 2025 Fashion Show in Milan. At the same time, we pushed ahead with strengthening both brands’ 24/7 lifestyle images. Besides fully leveraging our BOSS brand lines across all touchpoints, we expanded our denimwear offering with the introduction of HUGO Blue. In addition, we further elevated our omnichannel activities to improve the customer experience, including the opening of new BOSS halo stores in Düsseldorf and Shanghai. At the same time, we successfully launched our new membership program HUGO BOSS XP, thus further strengthening customer loyalty and deepening connections to our brands and products. Group Strategy, Consumer Touchpoints

In response to the softer consumer sentiment, in the course of 2024, we accelerated our focus on enhancing cost efficiency. This included driving efficiency gains across our global sourcing activities and optimizing freight modes, which had a positive impact on gross margin development in fiscal year 2024. In the second half of the year, we implemented additional measures to enhance efficiency and effectiveness, capitalizing on our robust organizational platform. Besides putting strong emphasis on driving marketing effectiveness, we particularly targeted productivity gains within global sales and administration functions. This included optimizing the retail cost structure and prioritizing spend in strategically relevant areas. Against the backdrop of these efficiency measures, we were able to limit the increase in operating expenses in the second half of the year, thus supporting profitability in 2024. As a result, EBIT amounted to EUR 361 million in fiscal year 2024, translating into an EBIT margin of 8.4% (2023: EUR 410 million; 9.8%). Consequently, HUGO BOSS achieved its full-year 2024 sales and earnings targets, which had been adjusted in July 2024 against the backdrop of the challenging market environment. Earnings Development

Group sales in fiscal year 2024 increased by 3%, both on a currency-adjusted and reported basis, amounting to EUR 4,307 million (2023: EUR 4,197 million). Revenues were thus in line with the most recent guidance range, which projected sales to grow between 1% and 4%. Growth in 2024 was supported by sales improvements across both our brands, BOSS and HUGO, as well as most regions and distribution channels. Earnings Development, Sales Performance

Supported by the solid top-line performance and an increase in gross margin, the decline in operating profit (EBIT) – caused by higher operating expenses compared to the prior year – was ultimately limited to 12%, totaling EUR 361 million in fiscal year 2024 (2023: EUR 410 million). Consequently, EBIT was in line with the most recent guidance of EUR 350 million and EUR 430 million. As a result, EBIT margin amounted to 8.4%, 140 basis points below the prior-year level (2023: 9.8%). Accordingly, the Group’s net income decreased by 17% to EUR 224 million in fiscal year 2024 (2023: EUR 270 million). Earnings Development, Income Statement

Trade net working capital (TNWC) as a percentage of sales improved to 19.6% (2023: 20.8%), thus exceeding our most recent guidance of approaching 20%. This development reflects an improvement in our inventory-to-sales ratio, lower trade receivables, as well as higher trade payables. Net Assets

In 2024, capital expenditure decreased by 4% to EUR 286 million, slightly below the most recent guidance range of around EUR 300 million (2023: EUR 298 million). This development mainly reflects our progress in driving CapEx efficiency by prioritizing strategically relevant investments. Financial Position, Capital Expenditure

In fiscal year 2024, free cash flow amounted to EUR 497 million, significantly exceeding the prior-year level (2023: EUR 96 million) and thus underlining our highly cash-generating business model. The strong increase was mainly driven by improvements in trade net working capital. Financial Position, Statement of Cash Flows