HUGO BOSS AG

HUGO BOSS AG is the parent company of HUGO BOSS Group. Its annual financial statements are prepared in accordance with the provisions of HGB [“Handelsgesetzbuch”: German Commercial Code]. In addition to the operating business, the results of HUGO BOSS AG are predominately driven by the management of the central functions. A material item in this context is the allocation of costs for services rendered to Group companies.

Earnings development

Sales of HUGO BOSS AG primarily comprise brick-and-mortar retail, brick-and-mortar wholesale, and digital revenues generated in Germany and Austria as well as intercompany sales with its international subsidiaries.

In fiscal year 2024, revenues of HUGO BOSS AG remained broadly on the prior-year level. In EMEA, HUGO BOSS AG recorded further top-line improvements, including solid growth in Germany. This largely compensated for a decline in revenue with subsidiaries in Americas and Asia/Pacific due to an adjusted intercompany pricing reflecting current external market factors.

While revenues for BOSS remained below the prior year, HUGO posted robust sales growth, supported by the launch of its new denim brand line HUGO Blue. At the same time, sales from other services also remained slightly below 2023 levels, reflecting lower intercompany charges passed on to subsidiaries, in particular related to service and IT.

At 35.1%, the gross margin of HUGO BOSS AG was well above the prior-year level (2023: 32.0%), mainly reflecting benefits from increased sourcing efficiencies. Distribution expenses were up 5%, largely attributable to inflation- and expansion-related cost increases in brick-and-mortar retail. General administration expenses were down 13% year over year, mainly reflecting disciplined overhead cost management. In particular, HUGO BOSS implemented several initiatives to enhance organizational efficiency in fiscal year 2024, including eliminating non-essential spending while prioritizing key strategic initiatives. The decrease in other operating income is primarily due to the profit realized in the previous year from merging HUGO BOSS Trade Mark Management GmbH & Co. KG into HUGO BOSS AG. Other operating expenses came in 7% below the prior-year level, with lower currency effects also contributing to the development. The income from profit and loss transfer agreements of EUR 94 million is attributable to HUGO BOSS Internationale Beteiligungs-GmbH (2023: EUR 89 million).

Net assets and financial position

Property, plant, and equipment, and intangible assets of HUGO BOSS AG increased by 10% year over year, totaling EUR 1,115 million (December 31, 2023: EUR 1,012 million). This development mainly reflects investments in the ongoing expansion of its headquarters in Metzingen (Germany) and the Company’s distribution center for flat-packed goods in Filderstadt (Germany), with completion scheduled for 2025 and 2026, respectively.

The increase in inventories mainly reflects higher goods in transit at the end of fiscal year 2024. HUGO BOSS AG is the main supplier for the Group’s global distribution companies. Trade receivables of HUGO BOSS AG remained well below the prior-year level, mainly attributable to efficient receivables management. At the same time, the Company recorded an increase in trade payables, driven by higher sourcing volumes at year-end also reflected by an increased utilization of the Company’s supplier financing program. Consequently, trade net working capital (TNWC) of HUGO BOSS AG ended fiscal year 2024 well below the prior-year level.

At EUR 98 million, receivables from affiliated companies at the end of fiscal year 2024 were above the prior-year level (December 31, 2023: EUR 74 million). Liabilities to affiliated companies slightly decreased to EUR 94 million, mainly due to repayments of loans to HUGO BOSS International B.V. (December 31, 2023: EUR 103 million). Provisions also decreased, amounting to EUR 163 million at the end of the year (December 31, 2023: EUR 186 million). At EUR 219 million, liabilities to credit institutions were above the prior-year level (December 31, 2023: EUR 177 million), mainly reflecting the Company’s real estate financing in the amount of EUR 43 million secured in 2024 for the expansion of its headquarters in Metzingen.

As of December 31, 2024, cash and cash equivalents, defined as the total of cash on hand and bank balances, amounted to EUR 7 million (December 31, 2023: EUR 2 million), with the increase mainly reflecting a higher cash flow from operating activities. The latter particularly benefited from the improvements in trade net working capital.

Outlook, risks, and opportunities

Due to its close relationships with the Group companies and its relevance for the Group, the expectations for HUGO BOSS AG are largely reflected in the Group’s outlook. In this context, the net income of HUGO BOSS AG, which represents the Company’s key performance indicator, is expected to record robust improvements in fiscal year 2025. There are no specific particularities regarding HUGO BOSS AG. In addition, the business performance of HUGO BOSS AG is, to a large degree, also subject to the same risks and opportunities as those faced by the Group. Consequently, the statements within the Group’s Report on Risks and Opportunities also apply to HUGO BOSS AG. Outlook, Report on Risks and Opportunities