Hugo Boss (BOSS) investor relations material

Executive summary

• Q3 currency-adjusted sales declined 5% amid subdued demand and strategic realignment; gross margin rose 220 bps to 63.3%, while EBIT fell 15% to €81 million.

• CLAIM 5 TOUCHDOWN remains focused on brand desirability, distribution quality, profitability, sourcing efficiencies and disciplined capital use.

• Q3 free cash flow before leases reached €155 million, supported by working-capital and CapEx discipline; FY26 free cash flow is expected well below the original plan.

Financial highlights

• Q3 revenue was €946 million, down 4% reported and 5% currency-adjusted; 9M revenue was €2,756 million, down 8% reported and 7% currency-adjusted.

• Q3 EBIT was €81 million versus €95 million a year earlier; 9M EBIT declined 26% to €175 million.

• Q3 net income was €49 million and EPS €0.70, down 18% YoY; 9M net income was €101 million and EPS €1.43, down 30%.

• Operating expenses rose 2% to €518 million; Q3 free cash flow before leases was €155 million versus €66 million, and 9M reached €293 million versus €137 million.

Outlook and guidance

• FY26 currency-adjusted sales are expected to decline in the high-single-digit range, versus the previous mid- to high-single-digit decline outlook; EBIT guidance is €250 million–€300 million, down from €300 million–€350 million.

• Guidance reflects softer Q4 demand and higher non-cash D&A from shortened useful lives of selected IT and software assets; further gross-margin expansion and cost discipline are assumed.

• FY26 trade net working capital is expected at ~21% of sales, reflecting lower trade payables after supplier payment-term adjustments; CapEx is expected at 4%–5% of sales.

• FY26 free cash flow is expected well below the original plan, reflecting lower EBIT, higher net working capital and CapEx, and less year-end trade-payables support.