HUGO BOSS holds strong investment-grade ratings from leading agencies, Standard & Poor’s (S&P) and Moody’s, underscoring its robust financial position and long-term growth potential. S&P rates the Company “BBB” while Moody’s assigns a “Baa2” rating, both reaffirmed in 2024. While S&P revised its outlook to negative in March 2024 – citing macroeconomic volatility, short-term supply chain challenges, and increased capital expenditure levels – the agency acknowledged that the HUGO BOSS performance remains strong relative to peers. These ratings, first assigned in 2022, place HUGO BOSS among the highest-rated companies in the global premium apparel industry, reflecting the Company’s strong brand perception, sound financial health, and financing flexibility.
The cornerstone of HUGO BOSS’ financing structure is a EUR 600 million ESG-linked revolving syndicated loan, offering strong financial flexibility to support the successful execution of the Company’s strategic initiatives. The facility, concluded in 2021, is available for general corporate purposes or guarantees and initially carried a three-year term. With both one-year extension options having been successfully exercised, the term was extended through 2026. Additionally, the loan includes an option to increase the credit volume by up to EUR 300 million, further enhancing the Company’s financial agility. The syndicated loan contains a standard covenant requiring the maintenance of financial leverage, defined as the ratio of net financial liabilities (including lease liabilities in accordance with IFRS 16) to EBITDA. As of December 31, 2024, financial leverage totaled 1.3, thus on the prior-year level (December 31, 2023: 1.3) and well below the maximum permissible level. The syndicated loan is based on variable interest rates with applicable credit margins depending on the external credit rating and fulfillment of predefined ESG criteria. At the end of fiscal year 2024, its utilization totaled EUR 11 million used for bank guarantees (December 31, 2023: utilization of EUR 92 million of which EUR 83 million was used for general corporate purposes and EUR 9 million for bank guarantees).
To meet the ongoing strong demand for its supplier financing program, HUGO BOSS has established a comprehensive solution comprising a single-bank program and a bank-independent platform. The combined credit limit for both programs amounts to EUR 268 million, with EUR 148 million utilized at the end of 2024 (December 31, 2023: EUR 107 million).
HUGO BOSS successfully issued a Schuldschein loan of EUR 175 million in 2023, comprising four tranches with three- and five-year maturities, offered at both fixed and variable interest rates. Proceeds are allocated to general corporate purposes, primarily supporting investments aligned with the Group’s strategy, including the ongoing expansion of our global logistics network. In addition, HUGO BOSS secured real estate financing in the amount of EUR 43 million in 2024 for the expansion of its headquarters in Metzingen (Germany). The financing comprises two separate amortizing loans with fixed interest rates in the amount of EUR 10 million and EUR 33 million, both with a maturity period of ten years. At the end of fiscal year 2024, the full financing amount of EUR 43 million remained outstanding. Financial Position, Capital Expenditure
To further secure liquidity, HUGO BOSS possesses committed and uncommitted bilateral credit lines totaling EUR 208 million (December 31, 2023: EUR 153 million), of which EUR 108 million was utilized at the end of fiscal year 2024 (December 31, 2023: EUR 63 million). In addition, HUGO BOSS had at its disposal cash and cash equivalents in the amount of EUR 211 million at year end (December 31, 2023: EUR 118 million). Notes to the Consolidated Financial Statements, Note 14, Financial Position, Statement of Cash Flows and Free Cash Flow
Overall, the Group’s liabilities totaled EUR 2,332 million at the end of the fiscal year (December 31, 2023: EUR 2,161 million), representing an unchanged 62% share of total assets (December 31, 2023: share of 62%). Of this amount, EUR 959 million was attributable to current and non-current lease liabilities (December 31, 2023: EUR 793 million), primarily relating to the rental of retail store locations as well as logistics and administration properties. Current and non-current financial liabilities totaled EUR 297 million at the end of fiscal year 2024 (December 31, 2023: EUR 340 million). Net Assets, Notes to the Consolidated Financial Statements, Notes 9 and 20