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1. Company Snapshot

1.a. Company Description

Hugo Boss AG, together with its subsidiaries, develops, markets, and distributes clothes, shoes, and accessories for men and women worldwide.It offers business, casual, athleisure, and evening wear; shoes and accessories; and licensed products, including fragrances, eyewear, and watches, as well as children's fashion products.The company markets and sells its products under the BOSS and HUGO brand names through online stores, freestanding stores, shop-in-shops, and factory outlets.


As of December 31, 2021, it operated 1,228 retail points of sale.The company was founded in 1924 and is headquartered in Metzingen, Germany.

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1.b. Last Insights on BOSS

Breaking News: Hugo Boss AG recently unveiled its new strategy, Claim 5 Touchdown, aimed at driving sustainable and profitable growth through 2028. However, alongside this announcement, the company issued a painful forecast for 2026, warning of a sales decline due to brand realignment efforts. This news led to a significant drop in shares. The company is focusing on "better before bigger" as it steers towards its growth goals. Analysts at Deutsche Bank recommend a hold, while those at UBS recommend a buy, citing potential for long-term growth.

1.c. Company Highlights

2. HUGO BOSS Posts Stable Q3 Earnings Amidst Challenging Consumer Landscape

HUGO BOSS reported a decline in group sales of 1% year-over-year on a currency-adjusted basis, primarily due to the unfavorable timing of wholesale deliveries. The revenue decline was more pronounced in reported terms, down 4%, due to substantial currency headwinds, particularly from the weaker U.S. dollar. The company's EBIT remained stable at EUR 95 million, with the EBIT margin improving by 30 basis points to 9.6%. Earnings per share (EPS) came in at EUR 0.85, beating analyst estimates of EUR 0.824.

Publication Date: Nov -11

📋 Highlights
  • Revenue Decline: Group sales fell 1% YoY (currency-adjusted), with reported revenue down 4% due to weaker USD and unfavorable wholesale timing.
  • EBIT Stability: EBIT remained stable at EUR 95 million, with margin improving 30 bps to 9.6% driven by gross margin expansion.
  • Gross Margin Expansion: Margin rose 100 bps to 61.2% from sourcing efficiency, lower product costs, and reduced freight rates.
  • Operating Cost Discipline: Operating expenses fell 3% YoY for the fifth consecutive quarter, reflecting strict cost management.
  • Full-Year Outlook: Sales guidance revised to EUR 4.2 billion (down EUR 100 million from currency headwinds), with EBIT projected at EUR 380 million (EUR 20 million lower due to forex).

Gross Margin Expansion Drives Profitability

The company's gross margin expanded by a strong 100 basis points to 61.2%, driven by efficiency gains in sourcing, lower product costs, and reduced global freight rates. This improvement was a key driver of the company's profitability, enabling HUGO BOSS to maintain stable EBIT despite the decline in sales. As Yves Muller, CFO and COO, noted, "We executed with discipline and focus, prioritizing the levers within our control, and achieved robust gross margin improvements and notable bottom line enhancements."

Operational Highlights

The company's brick-and-mortar retail business showed a modest sequential improvement, with sales remaining stable versus the prior year period. The digital business continued its positive trajectory, with sales up 2% year-over-year. Operating expenses declined 3% year-over-year, marking five consecutive quarters of disciplined OpEx management.

Valuation and Outlook

With a P/E Ratio of 11.46 and an EV/EBITDA ratio of 4.91, the market appears to have priced in a moderate growth outlook for HUGO BOSS. Analysts estimate revenue growth of 2.7% for next year. The company's confirmed full-year outlook for both sales and EBIT, with expectations of being at the lower end of the guidance ranges, reflects the ongoing volatility in the global consumer environment. The dividend yield of 3.82% provides a relatively stable return for investors.

3. NewsRoom

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Hugo Boss unveils Claim 5 Touchdown strategy to steer growth through 2028

Dec -03

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Hugo Boss Reveals New Strategy Alongside Painful Forecast for 2026

Dec -03

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Hugo Boss Shares Fall After Brand Realignment Triggers Sales Drop Warning

Dec -03

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Coty Inc (COTY) Q1 2026 Earnings Call Highlights: Navigating Challenges and Seizing Growth ...

Nov -13

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Is Now The Time To Look At Buying Hugo Boss AG (ETR:BOSS)?

Nov -10

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Hugo Boss AG (BOSSY) Q3 2025 Earnings Call Highlights: Navigating Currency Headwinds and ...

Nov -04

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After Flat Q3, Hugo Boss to Reveal a Strategy Update

Nov -04

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Hugo Boss Expects Sales, Earnings at Lower End of Guidance Amid Economic Volatility

Nov -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.64%)

6. Segments

EMEA

Expected Growth: 4.5%

EMEA region is expected to drive growth for Hugo Boss AG, driven by increasing demand for luxury fashion, expanding middle class, and growing tourism in key markets such as the UK, Germany, and the UAE.

Americas

Expected Growth: 4.5%

The Americas segment of Hugo Boss AG is expected to grow driven by increasing demand for premium fashion, expanding e-commerce presence, and strategic partnerships in the region.

Asia/Pacific

Expected Growth: 5.5%

The Asia-Pacific region is expected to drive growth for Hugo Boss AG, driven by increasing demand for luxury goods in China, Japan, and Australia, as well as a growing middle class with rising disposable incomes.

Licenses

Expected Growth: 4.5%

The growth of licensed products, such as watches, eyewear, and fragrances, is driven by increasing demand for luxury goods, expansion into emerging markets, and strategic partnerships with manufacturers and distributors.

7. Detailed Products

BOSS Menswear

High-quality, stylish clothing for men, including suits, dress shirts, and casual wear

BOSS Womenswear

Fashionable, high-quality clothing for women, including dresses, tops, and pants

HUGO Menswear

Edgy, avant-garde clothing for men, including denim, leather, and statement pieces

HUGO Womenswear

Trendy, fashion-forward clothing for women, including dresses, tops, and pants

BOSS Accessories

High-quality accessories, including watches, sunglasses, and leather goods

HUGO Accessories

Edgy, fashion-forward accessories, including hats, scarves, and bags

BOSS Fragrances

High-quality fragrances for men and women, including perfumes and aftershaves

8. Hugo Boss AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Hugo Boss AG is medium, as there are some alternatives available in the market, but they are not very close substitutes. The company's strong brand image and high-quality products make it difficult for substitutes to gain significant market share.

Bargaining Power Of Customers

The bargaining power of customers for Hugo Boss AG is low, as the company operates in the premium segment and has a strong brand image. Customers are willing to pay a premium for the company's high-quality products, reducing their bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Hugo Boss AG is medium, as the company relies on a few large suppliers for its raw materials. However, the company's strong brand image and high-volume purchases give it some bargaining power over its suppliers.

Threat Of New Entrants

The threat of new entrants for Hugo Boss AG is low, as the company operates in a highly competitive market and has a strong brand image. New entrants would need significant resources and investment to compete with the company's established brand.

Intensity Of Rivalry

The intensity of rivalry for Hugo Boss AG is high, as the company operates in a highly competitive market with many established players. The company needs to continuously innovate and invest in marketing and advertising to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.89%
Debt Cost 5.39%
Equity Weight 72.11%
Equity Cost 11.03%
WACC 9.46%
Leverage 38.67%

11. Quality Control: Hugo Boss AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
De'Longhi

A-Score: 6.2/10

Value: 5.4

Growth: 5.7

Quality: 6.8

Yield: 6.9

Momentum: 6.5

Volatility: 6.0

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LPP

A-Score: 5.7/10

Value: 3.8

Growth: 8.0

Quality: 5.7

Yield: 6.2

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

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Hugo Boss

A-Score: 5.5/10

Value: 7.4

Growth: 5.1

Quality: 5.6

Yield: 4.4

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Moncler

A-Score: 5.2/10

Value: 3.2

Growth: 7.4

Quality: 8.1

Yield: 3.8

Momentum: 3.5

Volatility: 5.0

1-Year Total Return ->

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Frasers

A-Score: 4.8/10

Value: 7.4

Growth: 6.6

Quality: 4.9

Yield: 0.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

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Zegna

A-Score: 4.3/10

Value: 4.4

Growth: 5.6

Quality: 4.4

Yield: 2.5

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.42$

Current Price

35.42$

Potential

-0.00%

Expected Cash-Flows