Hugo Boss (BOSS) investor relations material

Executive summary

• Strategic execution of CLAIM 5 TOUCHDOWN drove improvements in earnings quality, productivity, and cash generation despite sales declines amid macroeconomic headwinds and weak consumer demand.

• Group sales declined 9% in Q2 and 8% in H1 year-over-year, with EMEA most affected, while Americas and Asia/Pacific showed relative resilience.

• Gross margin improved by 200 basis points to 64.9% in Q2, supported by sourcing efficiencies, price increases, and higher full-price sales.

• The voluntary takeover offer by Frasers Group at EUR 38 per share was reviewed and rejected by the boards as undervaluing long-term potential.

• Free cash flow before leases reached EUR 105 million in Q2 and EUR 137 million in H1, supported by improved working capital management.

Financial highlights

• Q2 2026 revenue: EUR 905 million, down 9% currency-adjusted year-over-year; H1 revenue: EUR 1,810 million, down 8% currency-adjusted.

• Q2 EBIT: EUR 59 million (6.5% margin), down 28% year-over-year; H1 EBIT: EUR 94 million (5.2% margin), down 34% year-over-year.

• Net income after minorities was EUR 33 million in Q2, EPS EUR 0.49; H1 net income EUR 50 million, EPS EUR 0.73.

• Operating expenses fell by 4% in Q2 and H1, with selling and marketing expenses down 6% and administration up 3% due to digital investments and takeover-related fees.

• Gross profit: EUR 1,152 million in H1; H1 EBITDA: EUR 273 million (15.1% margin).

Outlook and guidance

• 2026 outlook reaffirmed: currency-adjusted group sales expected to decline mid- to high-single digits.

• EBIT guidance for 2026: EUR 300–350 million (2025: EUR 391 million); net income expected to develop broadly in line with EBIT.

• EMEA sales expected to decline high-single to low-teens percent; Americas and Asia/Pacific to decline low- to mid-single digits.

• Capital expenditure to normalize at upper end of 3–4% of sales.

• Market volatility and geopolitical uncertainty expected to persist in H2.