Income Statement

In fiscal year 2024, HUGO BOSS recorded a solid improvement in its gross margin, up 30 basis points to a level of 61.8% (2023: 61.5%). Efficiency gains in sourcing as well as a successful reduction in the airfreight share, which more than compensated for an overall rise in global freight costs, provided substantial tailwinds to gross margin development. These gains more than compensated for adverse channel and regional mix effects, unfavorable currency effects, as well as an overall promotional environment. Business Operations

Following the rigorous implementation of several cost measures aimed at supporting profitability, HUGO BOSS efficiently mitigated the growth in operating expenses over the course of the year. Overall, this translated into operating expenses increasing by 6% in fiscal year 2024, with the increase in the second half of the year being substantially lower compared to the first half. Overall, this development mainly reflects higher selling and marketing expenses, while administration expenses remained broadly stable year over year. As a percentage of sales, operating expenses increased by 170 basis points to a level of 53.4% (2023: 51.7%). Notes to the Consolidated Financial Statements, Notes 2, 3, and 9

Selling and marketing expenses increased by 7% compared to the prior year, growing 180 basis points to a level of 43.4% (2023: 41.6%). As part of this, selling expenses for the Group’s brick-and-mortar retail business expanded by 14% to EUR 989 million, thus representing 23.0% of Group sales (2023: EUR 870 million; 20.7%). The increase was driven by inflation- and expansion-related costs, alongside higher non-cash impairment charges. At the same time, higher fulfilment expenses also contributed to the overall increase in selling and marketing expenses, up 10% to EUR 183 million (2023: EUR 166 million). Marketing investments, on the other hand, decreased 6% to a level of EUR 309 million (2023: EUR 328 million). This primarily reflects the Company’s increased focus on driving marketing efficiency by prioritizing brand initiatives with the highest return. Consequently, marketing investments added up to 7.2% of Group sales, thus in line with the Company’s target range of 7% to 8% as laid out in “CLAIM 5” (2023: 7.8%). Notes to the Consolidated Financial Statements, Note 2, Group Strategy, “Boost Brands”

Administration expenses remained broadly stable in 2024, as overall cost inflation was largely offset by disciplined overhead cost management. In particular, HUGO BOSS implemented several initiatives to enhance organizational productivity in fiscal year 2024, including eliminating non-essential spending and prioritizing key strategic initiatives. Consequently, at EUR 341 million, general administration expenses increased only slightly compared to the prior year (2023: EUR 336 million), while research and development expenses incurring in the collection development were broadly in line with 2023 levels, amounting to EUR 90 million (2023: EUR 89 million). Overall, as a percentage of sales, administration expenses decreased by 10 basis points to a level of 10.0% (2023: 10.1%). Notes to the Consolidated Financial Statements, Note 3, Product Development and Innovation

Supported by the Company’s enhanced focus on cost efficiency, particularly in the second half of the year, the decrease in operating profit (EBIT) was limited to 12%, with EBIT amounting to EUR 361 million in 2024 (2023: EUR 410 million). Accordingly, the Group’s EBIT margin decreased by 140 basis points to a level of 8.4% (2023: 9.8%), as the sales increase and improvements in gross margin were more than offset by the increase in operating expenses. Currency effects had a slightly negative impact on EBIT in fiscal year 2024.

Depreciation and amortization came in 21% above the prior-year level, amounting to EUR 414 million (2023: EUR 342 million). The increase is mainly attributable to non-cash impairment charges totaling EUR 47 million (2023: write-ups of EUR 4 million), reflecting impairments of fixed store assets and right-of-use assets, driven by the challenging brick-and-mortar retail environment in fiscal year 2024. Notes to the Consolidated Financial Statements, Note 7

At EUR 59 million, net financial expenses (financial result) in fiscal year 2024 were 11% above the prior year (2023: EUR 53 million), as the Company recorded higher interest expense in lease accounting under IFRS 16, reflecting the overall high interest rate levels. The Group tax rate was slightly above the prior year, thus gradually normalizing to a level of 26% (2023: 24%). Accordingly, the Group’s net income for fiscal year 2024 amounted to EUR 224 million, 17% below the prior-year level (2023: EUR 270 million). As part of this, net income attributable to shareholders also decreased by 17% to EUR 213 million (2023: EUR 258 million), resulting in earnings per share of EUR 3.09 (2023: EUR 3.74). Currency effects had a slightly negative impact on the Group’s net income in fiscal year 2024. Notes to the Consolidated Financial Statements, Note 4 and 5