Illustration of opportunities

HUGO BOSS sees strong growth opportunities across its entire business model and remains fully committed to leveraging these across both brands, all channels, and all regions. For 2025, HUGO BOSS has identified several key opportunities arising from the corporate environment, its Group strategy, and operational execution. Opportunities identified in the risk and opportunity management process with an at least essential potential impact on HUGO BOSS are detailed below in descending order of their potential financial impact. In contrast, opportunities with a low to moderate potential financial impact are not discussed in detail.

Opportunities related to suppliers and sourcing

As part of its global sourcing and production activities, HUGO BOSS fosters a robust and efficient operational infrastructure supporting long-term growth ambitions. Constantly, we put strong efforts into increasing the resilience, efficiency, and flexibility of our global sourcing and production activities. In particular, HUGO BOSS puts a strong focus on maintaining a resilient supplier network by fostering strong supplier relationships and collaboration. At the same time, the Company places a strong emphasis on realizing greater economies of scale through strategic price negotiations supported by increased order volumes. At the same time, the Company could benefit from a short-term decrease in prices for raw materials such as cotton, wool, and leather. To actively drive greater economies of scale, the Company aims to further streamline its raw material sourcing across fabrics and trimmings, balancing focus and diversification to ensure both cost efficiency and supply stability. With regards to the latter, HUGO BOSS is implementing a Digital TWIN, a smart and tech-driven business operations platform. The Digital TWIN is expected to strongly enhance real-time data utilization going forward, further improving demand and logistics planning, inventory allocation, and transparency within our supply chain. Greater-than-expected successes in these areas may have a direct positive impact on the sales and earnings performance of HUGO BOSS. Business Operations

Global economic and currency opportunities

HUGO BOSS benefits from positive macroeconomic developments and their potential impact on consumer sentiment and buying behavior. For example, a faster-than-expected normalization of global inflation and interest rates, or a stronger than expected rebound in global trade and investment flows might lead to stronger economic growth overall and thus to a noticeable uplift in global consumer sentiment. This, in turn, could have a fundamentally positive impact on global demand for premium apparel and accessories. In addition, evolving social trends that support the upper premium apparel market could further support the top-line performance and full-price sell-through of HUGO BOSS, regardless of the development of broader consumer sentiment. At the same time, regulatory and legal changes also present opportunities. For example, more consistent prosecution and punishment of infringements of trademark rights can positively impact the sales performance, while the removal of tariffs may improve profitability. On top of that, favorable exchange rate developments can have a positive impact on earnings development. Our Group Treasury department continuously monitors the market environment and identifies relevant opportunities within the framework of financial management principles. Financial Position

Opportunities related to sales and distribution

As a global fashion and lifestyle company, HUGO BOSS has built a strong distribution footprint in recent years both physically and digitally. Building on our strong brand power, we aim to further advance our omnichannel activities in the coming years, ensuring a seamless brand experience across all consumer touchpoints. To this end, we will continue to optimize and modernize our existing store network with the global rollout of our latest store concepts for BOSS and HUGO already in full swing. This is expected to support future productivity improvements in brick-and-mortar retail. At the same time, we are also striving to build on our regained strength in brick-and-mortar wholesale and further leverage the 24/7 lifestyle images of BOSS and HUGO, having already successfully increased visibility and market presence since the introduction of “CLAIM 5”. In addition, we will further strengthen our global franchise business by adding several full-price franchise stores, with particular emphasis on emerging markets. With regards to our digital business, we will focus on further driving traffic and conversion, particularly within our digital flagship hugoboss.com and, at the same time, fostering growth with digital partners. Consistent exploitation of these opportunities may have a direct positive impact on the business performance of HUGO BOSS.

HUGO BOSS aims to turn consumers into fans, thus putting a strong emphasis on retaining and accompanying its most valuable customers. In this context, we implemented our loyalty program HUGO BOSS XP in 2024, aimed at further driving brand loyalty in the coming years. By closely engaging with our customers, the program offers important opportunities in boosting member sales and driving customer lifetime value. Already in 2024, fueled by the introduction of HUGO BOSS XP, we successfully increased our member base by around 25% to more than ten million (2023: more than eight million). To further deepen and expand our existing customer relationships, but also attract new BOSS and HUGO customers, we will further roll out the program in the coming years. Effectively leveraging these opportunities can directly enhance HUGO BOSS’ business performance. Consumer Touchpoints

Opportunities related to brand heat and product offering

Also in fiscal year 2025, the execution of our strategic priorities will remain key. In this context, we will continue to build on the brand power of BOSS and HUGO and focus on further engaging with our customers. In particular, we will continue to put strong emphasis on high-profile brand campaigns to further fuel brand relevance and win over new customers. On top of that, exceptional events and high-impact collaborations – such as the one with David Beckham – are intended to further increase brand relevance. A further significant increase in brand relevance can have a positive impact on consumer demand and thus drive sales as well as full-price sell-through, consequently resulting in higher-than-expected revenue and earnings development. Group Strategy, “Boost Brands”

At the same time, we will keep investing in our product assortment to further enhance our price-value proposition, aiming to gain further market shares in the coming years. On top of that, HUGO BOSS will continue to strongly leverage the potential of further digitalizing its product development also in the years to come, for example when it comes to AI-powered trend detection and virtual try-ons with avatars. In this context, we also aim to improve efficiency and drive greater economies of scale by further reducing complexity across our product offerings. This should enable us to maintain premium quality as well as a high level of innovation and sustainability, while also growing units-per-style and lowering product costs. HUGO BOSS also incorporates risk criteria into its product development, as this can have a direct positive impact on its business performance. A further improvement in product quality, for example, can have a positive impact on the return rate and thus on the sales development. We are also committed to continue exploiting the full potential of our 24/7 product range, leveraging all wearing occasions. In particular, the Company aims to further capitalize on product groups such as denim, shoes and accessories, and bodywear. Fully leveraging our 24/7 lifestyle approach should enable us to reinforce our leading position in the upper premium apparel market. Group Strategy, “Product is Key”

Personnel opportunities

At HUGO BOSS, we are convinced that the passion and dedication of our employees are vital for long-term business success. Our Human Resources management focuses on attracting, retaining, and developing the best talent in the fashion industry, putting a strong emphasis on further enhancing our attractiveness as an employer. A competitive compensation, additional benefits, as well as an attractive workspace are intended to further strengthen our position in international competition, enabling the Company to efficiently fill vacant positions with qualified people, and to increase motivation, commitment, and loyalty among our employees. At the same time, supporting employees in their individual development may have an additional positive impact on the Company’s financial performance.

As an international company, diversity, equity, and inclusion (DE&I) is a fundamental part of our corporate culture. We are convinced that heterogeneous and inclusive teams can achieve better and more creative solutions to complex issues and thus make a positive contribution to the successful execution of our Group strategy. Consequently, HUGO BOSS has implemented numerous initiatives to ensure a discrimination-free working environment with equal opportunities and inclusive work culture for all employees. We are convinced that intensifying our activities in the important area of DE&I positively contributes to employee satisfaction and is also considered a relevant factor by potential applicants. Combined Non-financial Statement, Own Workforce