Q2 2026 Hugo Boss AG Earnings Call

August 4, 2026

Speaker #1: Ladies and gentlemen, welcome to the Q2 2026 results conference call and live webcast. I am Sandra, the call operator. I would like to remind you that all participants are in listen-only mode and the conference is being recorded.

Operator: Ladies and gentlemen, welcome to the Q2 2026 results conference call and live webcast. I am Sandra, the Chorus Call operator. I would like to remind you that all participants have been listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing Star and One on your telephone. For operator assistance, please press Star and Zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Christian Stoehr, Senior Vice President, Investor Relations. Please go ahead, sir.

Operator: Ladies and gentlemen, welcome to the Q2 2026 results conference call and live webcast. I am Sandra, the Chorus Call operator. I would like to remind you that all participants have been listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Christian Stoehr, Senior Vice President, Investor Relations. Please go ahead, sir.

Speaker #1: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone.

Speaker #1: For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Christian Stoehr, Senior Vice President, Investor Relations.

Speaker #1: Please go ahead, sir.

Speaker #2: Good morning, ladies and gentlemen, and welcome to our second quarter 2026 results presentation. Today's call will be hosted by Danik Wieder, CEO of HUGO BOSS, and Yves Müller, CFO and COO.

Christian Stoehr: Good morning, ladies and gentlemen, and welcome to our Q2 2026 results presentation. Today's call will be hosted by Daniel Grieder, CEO of Hugo Boss, and Yves Müller, CFO and COO. Before we begin, please be reminded that all revenue growth rates will be discussed on a currency adjusted basis, unless stated otherwise. Also, as usual, during the Q&A session, we kindly ask all analysts to limit their questions to two. With that, let me hand over to Daniel.

Speaker #2: Before we begin, please be reminded that all revenue growth rates will be discussed on a currency-adjusted basis, unless stated otherwise. Also, as usual, during the Q&A session, we kindly ask all analysts to limit their questions to two.

Speaker #2: And with that, let me hand over to Daniel.

Speaker #3: Thank you, Christian. Good morning, ladies and gentlemen. Thank you for joining us today. The second quarter marked another important step in the execution of our strategy, Claim 5 Touchdown.

Daniel Grieder: Thank you, Christian. Good morning, ladies and gentlemen. Thank you for joining us today. The Q2 marked another important step in the execution of our strategy, CLAIM 5 TOUCHDOWN. While consumers demand remained weak and market conditions continued to be volatile, we made further progress on our key priorities, strengthening brand equity, enhancing earnings quality, and driving long-term value creation. As we outlined at the beginning of the year 2026, the year 2026 is a deliberate year of realignment. We are taking targeted actions to build a stronger and more productive Hugo Boss, even if these measures temporarily weigh on volumes. The progress achieved in the Q2 confirms that these actions are working, especially when it comes to gross margin expansion, inventory optimization, and cash generation.

Speaker #3: While consumer demand remains weak and market conditions continue to be volatile, we made further progress on our key priorities: strengthening brand equity, enhancing earnings quality, and driving long-term value creation.

Speaker #3: As we outlined at the beginning of the year 2026, in the year 2026, this is a deliberate year of realignment. We are talking targeted actions to build a stronger and more productive Hugo Boss even if these measures temporarily wait on volumes.

Speaker #3: The progress achieved in the second quarter confirms that these actions are working, especially when it comes to gross margin expansion, inventory optimization, and cash generation.

Speaker #3: While there is still work ahead of us, these improvements strengthen our confidence that our strategy enhances the quality of our business and positions HUGO BOSS for sustainable value creation over time.

Daniel Grieder: While there is still work ahead of us, these improvements strengthen our confidence that our strategy enhances the quality of our business and positions Hugo Boss for sustainable value creation over time. Before we discuss the quarter in more detail, let me briefly touch on the voluntary takeover offer by Frasers Group. Frasers has been a long-standing partner of Hugo Boss for many years, both as a customer and as our single largest shareholder. We value the constructive relationship we built and appreciate the continued support for our strategic direction. Following a comprehensive review process, supported by two independent external opinions, both the managing board and Supervisory Board concluded that the offer price of EUR 38 per share does not reflect the long-term potential of Hugo Boss. We therefore jointly recommended that shareholders do not accept the offer.

Speaker #3: Before we discuss the quarter in more detail, let me briefly touch on the voluntary takeover offer by Frasers Group. Frasers has been a longstanding partner of Hugo Boss for many years, both as a customer and as our single largest shareholder.

Speaker #3: We value the constructive relationship we have built and appreciate the continued support for our strategic direction. Following a comprehensive review process, supported by two independent external opinions, both the Managing Board and the Supervisory Board concluded that the offer price of $38 per share does not reflect the long-term potential of Hugo Boss.

Speaker #3: We therefore jointly recommend that shareholders do not accept the offer. Our assessment reflects our conviction in the standalone value creation potential of our company.

Daniel Grieder: Our assessment reflects our conviction in the standalone value creation potential of our company. The progress we have achieved on the CLAIM 5 TOUCHDOWN reinforces our confidence in our ability to strengthen profitability in the long run, increase cash generation, and create sustainable value for all shareholders. Against this backdrop, our focus remains unchanged. We execute our strategy with discipline and unlock the tremendous potential of our two brands, BOSS and HUGO. Let me therefore briefly revisit CLAIM 5 TOUCHDOWN, which builds on three strategic pillars: brand excellence, distribution excellence, and operational excellence. We often describe it as a shift from scale towards value creation, being more selective in how we drive growth, placing greater emphasis on profitability, and fostering cash generation. From a value creation perspective, three elements are therefore particularly important.

Speaker #3: The progress we have achieved on the Claim Five touchdown reinforces our confidence in our ability to strengthen profitability in the long run, increase cash generation, and create sustainable value for all shareholders.

Speaker #3: Against this backdrop, our focus remains unchanged. We execute our strategy with discipline and unlock the tremendous potential of our two brands, BOSS and HUGO.

Speaker #3: Let me therefore briefly revisit claim five touchdown, which builds on three strategic pillars: brand excellence, distribution excellence, and operational excellence. We often describe it as a shift from scale towards value creation, being more selective in how we drive growth, placing greater emphasis on profitability, and fostering cash generation.

Speaker #3: From a value creation perspective, three elements are therefore particularly important. First, strengthening our brands and distribution by enhancing consumer relevance, sharpening our product offering, and driving distribution quality.

Daniel Grieder: First, strengthening our brands and distribution by enhancing consumer relevance, sharpening our product offering, and driving distribution quality. Second, improving profitability through gross margin expansion and disciplined cost management. Third, enhancing cash generation through simplified operations, lower working capital, and disciplined capital allocation. Taken together, CLAIM 5 TOUCHDOWN is designed to strengthen the quality of our business while laying the foundation for long-term shareholder value creation. As outlined in our release this morning, the Q2 was characterized by both a volatile market environment and deliberate realignment actions. Sales declined by 9%, which reflects softer consumer demand, as well as our strategic realignment measures. At the same time, we delivered improvements across key value drivers of the business. Gross margin improvement by 200 basis points to 64.9%. Operating expenses declined by 4%, and free cash flow before leases reached EUR 105 million.

Speaker #3: Second, improving profitability through gross margin expansion and disciplined cost management. Third, enhancing cash generation through simplified operations, lower working capital, and disciplined capital allocation.

Speaker #3: Taken together, CLAIM 5 TOUCHDOWN is designed to strengthen the quality of our business while laying the foundation for long-term shareholder value creation. As outlined in our release this morning, the second quarter was characterized by both a volatile market environment and deliberate realignment actions.

Speaker #3: Sales declined by 9%, which reflects both consumer demand and our strategic realignment measures. At the same time, we delivered improvements across key value drivers of the business.

Speaker #3: Gross margin improved by 200 basis points to 64.9%, operating expenses declined by 4%, and free cash flow before leases reached €105 million. These improvements demonstrate that our priorities are translating into measurable outcomes.

Daniel Grieder: These improvements demonstrate that our priorities are translating into measurable outcomes. As part of the first strategic pillar, brand excellence, our priority is to strengthen the relevance of BOSS and HUGO and deepen consumer engagement. Throughout the H1, we continued to invest in our brands while further improving marketing effectiveness. Our brand spring-summer 2026 campaigns, together with activations like the BOSS OPEN and the BOSS Summer Club, supported brand visibility worldwide. This contributed to an increase in our social media community to almost 30 million followers. Beyond marketing, we continue to sharpen our product offering and reduce product complexity for the upcoming 2026 winter collection. Together, these actions will strengthen brand equity, drive efficiency, and create a more focused assortment architecture. We remain committed to further investing in our brands. In the H2, marketing investments are expected to increase in line with our planned phasing.

Speaker #3: As part of the first strategic pillar, brand excellence, our priority is to strengthen the relevance of BOSS and HUGO and deepen consumer engagement. Throughout the first half, we continued to invest in our brands while further improving marketing effectiveness.

Speaker #3: Our brands' Spring/Summer 2026 campaigns, together with activations like the BOSS Open and the BOSS Summer Club, supported brand visibility worldwide. This contributed to an increase in our social media community to almost 30 million followers.

Speaker #3: Beyond marketing, we continue to sharpen our product offering and reduce product complexity for the upcoming Winter 2026 collection. Together, these actions will strengthen brand equity, drive efficiency, and create a more focused assortment architecture.

Speaker #3: And we remain committed to further investing in our brands. In the second half, marketing investments are expected to increase in line with our planned phasing.

Speaker #3: We will support key commercial moments across BOSS and HUGO, including our winter and holiday campaigns, additional BOSS by Beckham activations, and the launch of our new Fall authentic luxury campaign featuring Japanese baseball superstar Shohei Ohtani.

Daniel Grieder: We will support key commercial moments across BOSS and HUGO, including our winter and holiday campaigns, additional BOSS by Beckham activations, and the launch of our new fall authentic luxury campaign, featuring Japanese baseball superstar Shohei Ohtani. Together with our more focused product offering, these investments will further strengthen consumer engagement and brand desirability. Under our pillar distribution excellence, we remain focused on improving distribution quality, strengthening full price sell-through, and increased store productivity. Our loyalty program, HUGO BOSS XP, continues to gain momentum. In the H1, membership increased by 16% year over year to more than 14 million members. Particularly encouraging is the growing relevance of BOSS and HUGO amongst younger consumer, who accounted for nearly half of new member acquisitions. At the same time, we remain disciplined in prioritizing full price sell-through and maintain tight control over markdown activity.

Speaker #3: Together with our more focused product offering, these investments will further strengthen consumer engagement and brand desirability. Under our pillar "Distribution Excellence," we remain focused on improving distribution quality, strengthening full-price sell-through, and increasing store productivity.

Speaker #3: Our loyalty program, Hugo Boss XP, continues to gain momentum in the first half. Membership increased by 16% year over year to more than 14 million members.

Speaker #3: Particularly encouraging is the growing relevance of Boss and Hugo among younger consumers, who accounted for nearly half of new member acquisitions.

Speaker #3: At the same time, we remain disciplined in prioritizing full-price sell-through and maintain tight control over markdown activity. This contributed to the strong gross margin development achieved in the second quarter and supports our focus on enhancing earnings quality.

Daniel Grieder: This contributed to the strong gross margin development achieved in the Q2 and supports our focus on enhancing earnings quality. We also continue to optimize our global store network. In the H1, Hugo Boss recorded a net closure of 21 stores. At the same time, we continued to refine our store portfolio, including the opening of the first dedicated BOSS Green store in the US market. While these actions temporarily affect volume, they support higher productivity and a healthier distribution footprint over time. In our third pillar, operational excellence, we are building a more agile, efficient, and productive business. We continue to simplify process across our value chain, reduce complexity, and improve buying decisions. Increasingly, we embedded AI into planning and inventory management, which helps us improve forecasting accuracy and product allocation. Together with a more focused operating model, these efforts support productivity and better full price execution.

Speaker #3: We also continue to optimize our global store network. In the first half, HUGO BOSS recorded a net closure of 21 stores. At the same time, we continue to refine our store portfolio, including the opening of the first dedicated BOSS Green store in the U.S. market.

Speaker #3: While these actions temporarily affect volumes, they support higher productivity and a healthier distribution footprint over time. In our third pillar, operational excellence, we are building a more agile, efficient, and productive business.

Speaker #3: We continue to simplify processes across our value chain, reduce complexity, and improve buying decisions. Increasingly, we embed AI into planning and inventory management, which helps us improve forecasting accuracy and product allocation.

Speaker #3: Together with a more focused operating model, these efforts support productivity and better full-price execution. Inventory management remains a key focus area for us.

Daniel Grieder: Inventory management remains a key focus area for us. Discipline buying, more focused assortments, and ongoing inventory optimization are improving inventory efficiency, as demonstrated by our H1 performance. At the same time, we remain selective in our investment with a clear focus on our strategic priorities. An important milestone in this context is the successful go live of the extension of our distribution center in Filderstadt in the Q2. This investment of more than EUR 100 million will further strengthen the efficiency of our logistics operations in the year to come. With that, let me hand over to Yves for a more detailed review of our financial performance. Yves, over to you.

Speaker #3: Disciplined buying, more focused assortments, and ongoing inventory optimization are improving inventory efficiency, as demonstrated by our first-half performance. At the same time, we remain selective in our investments, with a clear focus on our strategic priorities.

Speaker #3: An important milestone in this context is the successful go-live of the extension of our distribution center in Filderstadt in the second quarter. This investment of more than €100 million will further strengthen the efficiency of our logistics operations in the year to come.

Speaker #3: And with that, let me hand over to Eve for a more detailed review of our financial performance. Eve, over to you.

Speaker #2: Thank you, Daniel, and a warm welcome from my side as well. I will now walk you through our financial performance for the second quarter, before discussing our outlook for the remainder of the year.

Yves Müller: Thank you, Daniel, and a warm welcome from my side as well. I will now walk you through our financial performance for the Q2 before discussing our outlook for the remainder of the year. In the Q2 of 2026, sales declined by 9%, reflecting both our deliberate strategic realignment and the challenging consumer backdrop. At the same time, gross margin expansion, disciplined cost management, and strong cash generation demonstrate that we are making good progress in strengthening the fundamentals of our business, even as market conditions remain challenging. Let me first turn to our top-line performance across brands, regions, and channels. Starting with our brands, revenues at BOSS declined by 8% in the Q2. This reflects targeted measures to strengthen brand equity and profitability, especially in womenswear.

Speaker #2: In the second quarter of 2026, sales declined by 9%, reflecting both our deliberate strategic realignment and the challenging consumer backdrop. At the same time, gross margin expansion, disciplined cost management, and strong cash generation demonstrate that we are making good progress and strengthening the fundamentals of our business, even as market conditions remain challenging.

Speaker #2: Let me first turn to our top-line performance across brands, regions, and channels. Starting with our brands, revenues at BOSS declined by 8% in the second quarter.

Speaker #2: This reflects targeted measures to strengthen brand equity and profitability, especially in womenswear. At the same time, BOSS Menswear continues to benefit from its strong 24/7 lifestyle positioning, from tailoring to casualwear and leisure.

Yves Müller: At the same time, BOSS menswear continues to benefit from its strong 24/7 lifestyle positioning, from tailoring to casual wear and athleisure. HUGO revenues declined by 14%, reflecting the ongoing repositioning of the brand towards a more focused assortment and stronger contemporary tailoring offering. These actions temporarily impact volumes but strengthens HUGO's positioning over time. From a regional perspective, EMEA declined by 13%, impacted by softer local demand, weaker tourism, and lower traffic in the Middle East following geopolitical developments. The Americas declined by 1%, with resilient US brick and mortar performance and moderate growth in Latin America. Asia Pacific declined by 5%, reflecting lower revenues in China and Southeast Asia Pacific, while Japan continued to perform comparatively well. Looking at our channels, retail revenues decreased by 8%, reflecting softer traffic and an ongoing network optimization, including a 4% reduction in net selling space.

Speaker #2: HUGO revenues declined by 14%, reflecting the ongoing repositioning of the brand toward a more focused assortment and stronger contemporary tailoring offering. These actions temporarily impact volumes but strengthen HUGO's positioning over time.

Speaker #2: From a regional perspective, EMEA declined by 13%, impacted by softer local demand, weaker tourism, and lower traffic in the Middle East following geopolitical developments.

Speaker #2: The Americas declined by 1%, with resilient U.S. brick-and-mortar performance and moderate growth in Latin America. Asia Pacific declined by 5%, reflecting lower revenues in China and Southeast Asia Pacific, while Japan continued to perform comparatively well.

Speaker #2: Looking at our channels, retail revenues decreased by 8%, reflecting softer traffic and ongoing network optimization, including a 4% reduction in net selling space.

Speaker #2: Comparable store sales in brick and mortar were down 6%, proving more resilient than the overall retail business. Wholesale revenues declined by 10%, reflecting our focus on distribution quality and the transition to a more selective partner and assortment approach.

Yves Müller: Comparable store sales in brick and mortar were down 6%, proving more resilient than the overall retail business. Wholesale revenues declined by 10%, reflecting our focus on distribution quality and the transition to a more selective partner and assortment approach. Turning to profitability, gross margin remains a key indicator of our strategic progress. In Q2, gross margin increased by 200 basis points to 64.9%. The improvement was broad-based, driven by continued sourcing efficiencies, implemented price increases associated with our spring-summer 2026 collection, and a higher share of full-price sales. Our disciplined approach to distribution and sell-through also supported the improvement despite lower volumes. Importantly, these structural drivers remain in place. Turning to operating expenses, costs declined by 4% in Q2, reflecting our continued focus on efficiency and disciplined cost management.

Speaker #2: Turning to profitability, gross margin remains a key indicator of our strategic progress. In the second quarter, gross margin increased by 200 basis points to 64.9%.

Speaker #2: The improvement was broad-based, driven by continued sourcing efficiencies, implemented price increases associated with our Spring/Summer 2026 collection, and a higher share of full-price sales.

Speaker #2: Our disciplined approach to distribution and sell-through also supported the improvement, despite lower volumes. Importantly, these structural drivers remain in place. Turning to operating expenses, costs declined by 4% in the second quarter, reflecting our continued focus on efficiency and disciplined cost management.

Speaker #2: Selling and marketing expenses decreased by 6%, driven by productivity improvements across our retail operations as well as our focus on marketing effectiveness and a more balanced phasing of brand investments throughout the year.

Yves Müller: Selling and marketing expenses decreased by 6%, driven by productivity improvements across our retail operations as well as our focus on marketing effectiveness and a more balanced phasing of brand investments throughout the year. Administration expenses increased by 3%, primarily reflecting continued investments in our digital capabilities, as well as one-time fees in the mid-single-digit million euro range related to the takeover offer. Excluding these expenses, our underlying cost discipline remained intact. Gross margin expenses and disciplined cost management helped mitigate the impact of lower sales, resulting in EBIT of EUR 59 million and a margin of 6.5%. As expected, lower volumes resulted in operating deleverage. Last but not least, net income after minorities accounted to EUR 33 million, translating into earnings per share of EUR 0.49. Let me now turn to cash generation. Working capital discipline remained a clear priority throughout H1.

Speaker #2: Administration expenses increased by 3%, primarily reflecting continued investments in our digital capital as well as one-time fees in the mid-single-digit million euro range related to the take offer.

Speaker #2: Takeover offer. Excluding these expenses, our underlying cost discipline remained intact. Gross margin expenses and disciplined cost management helped mitigate the impact of lower sales, resulting in EBIT of €49 million, €59 million, and a margin of 6.5%.

Speaker #2: As expected, lower volumes resulted in operating deleverage. Last but not least, net income after minorities amounted to €33 million, translating into earnings per share of €0.49.

Speaker #2: Let me now turn to cash generation. Working capital discipline remained a clear priority throughout the first half of the year. As of June 30, inventories were down 15% on a currency-adjusted basis year over year, representing 23.1% of goods sales—a notable improvement of 240 basis points versus the prior year.

Yves Müller: As of 30 June, inventories were down 15% on the currency adjusted basis, year-over-year, representing 23.1% of group sales, a notable improvement of 240 basis points versus the prior year. This reflects disciplined buying, more focused assortments, and ongoing inventory optimization. Supported by lower inventories and receivables, trade net working capital declined by 11% on a currency adjusted basis. On a rolling four-quarter basis, trade net working capital amounted to 19.8% of group sales, remaining around the upper end of our midterm target range of 18% to 20%. We also maintained a disciplined approach to capital expenditure. CapEx amounted to EUR 31 million in Q2, corresponding to 3.4% of group sales, thus well in line with our midterm target of 3% to 4% of sales. Investments continued to focus on selective retail refurbishments, digital initiatives, and infrastructure to support our strategic priorities.

Speaker #2: This reflects disciplined buying, more focused assortments, and ongoing inventory optimization. Supported by lower inventories in receivables, trade net working capital declined by 11% on a currency-adjusted basis.

Speaker #2: On a rolling four-quarter basis, trade net working capital amounted to 19.8% of Group sales, remaining around the upper end of our midterm target range of 18% to 20%.

Speaker #2: We also maintained a disciplined approach to capital expenditure. Capex amounted to €31 million in Q2, corresponding to 3.4% of group sales, thus well in line with our midterm target of 3% to 4% of sales.

Speaker #2: Investments continued to focus on selective retail refurbishments, digital initiatives, and infrastructure to support our strategic priorities. As a result, free cash flow before leases reached €105 million in Q2, increasing to €137 million in the first six months.

Yves Müller: As a result, free cash flow before leases reached EUR 105 million in Q2, an increase to EUR 137 million in H1. These results underline the strength of our cash generation, and they provide the flexibility to continue investing in our business while maintaining a strong balance sheet. The operational progress achieved during H1 supports our confidence in delivering on our full year guidance. While market visibility remains limited and geopolitical uncertainty continues to weigh on consumer sentiment, our priorities remain unchanged: enhance earnings quality, improve cash generation, and strengthen our business fundamentals. Consequently, we continue to expect currency adjusted group sales to decline in the mid to high single-digit range. While our strategic realignment is progressing according to plan, we expect the external environment to remain volatile during H2, particularly given ongoing geopolitical uncertainty and its impact on consumer demand.

Speaker #2: These results underline the strength of our cash generation, and they provide the flexibility to continue investing in our business while maintaining a strong balance sheet.

Speaker #2: The operational progress achieved during the first half of the year supports our confidence in delivering on our full-year guidance. While market visibility remains limited and geopolitical uncertainty continues to weigh on consumer sentiment, our priorities remain unchanged.

Speaker #2: Enhanced earnings quality, improved cash generation, and strengthened our business fundamentals. Consequently, we continue to expect currency-adjusted Group sales to decline in the mid- to high-single-digit range.

Speaker #2: While our strategic realignment is progressing according to plan, we expect the external environment to remain volatile during the second half, particularly given ongoing geopolitical uncertainty.

Speaker #2: And it and its impact on consumer demand. Currency translation is expected to remain a moderate headwind to reported sales. From a regional perspective, we now expect sales in EMEA to decline in the high single digit to low 10 percentage range thereby also incorporating the situation in the Middle East and its spill away effect.

Yves Müller: Currency translation is expected to remain a moderate headwind to reported sales. From a regional perspective, we now expect sales in EMEA to decline in the high single digit to low teen percentage range, thereby also incorporating the situation in the Middle East and its spillover effect. At the same time, the Americas and Asia Pacific are now anticipated to decline in the low to mid single digit range. For EBIT, we continue to expect a range of between EUR 300 and 350 million. Targeted gross margin improvements and continued cost discipline are expected to support profitability, while lower revenues are anticipated to result in deleverage. While visibility remains limited, the operational progress achieved in H1 supports the execution of our plans for the remainder of the year. With that, let me hand back to Daniel.

Speaker #2: At the same time, the Americas and Asia Pacific are now anticipated to decline in the low- to mid-single-digit range. For EBIT, we continue to expect a range of between €300 and €350 million.

Speaker #2: Targeted gross margin improvements and continued cost discipline are expected to support profitability, while our revenues are anticipated to result in deleverage. While visibility remains limited, the operational progress achieved in the first half supports the execution of our plans for the remainder of the year.

Speaker #2: With that, let me hand back to Daniel.

Speaker #1: Thank you, Yves. Ladies and gentlemen, let me close with three key messages. First, the first half of 2026 demonstrates tangible progress on the CLAIM 5 touchdown.

Daniel Grieder: Thank you, Yves. Ladies and gentlemen, let me close with three key messages. First, H1 2026 demonstrates tangible progress on the CLAIM 5 TOUCHDOWN. Despite top line pressure from our strategic realignment and the challenging market environment, we are strengthening the fundamentals of the business. Gross margin is expanding, inventories are lower, and cash generation is strong. Second, 2026 remains a deliberate year of realignment. We are prioritizing long-term value creation over short-term volume, building a stronger, more productive, and more profitable Hugo Boss. Third, we remain convinced of the long-term value creation potential of our business. Based on our two strong brands, a clear strategic roadmap, and disciplined execution, we remain focused on creating attractive shareholder returns over time. Thank you very much for your attention. We are now happy to take your questions.

Speaker #1: Despite top-line pressure from our strategic realignment and the challenging market environment, we are strengthening the fundamentals of the business. Gross margin is expanding, inventories are lower, and cash generation is strong.

Speaker #1: Second, 2026 remains a deliberate year of realignment. We are prioritizing long-term value creation over short-term volume, building a stronger, more productive, and more profitable Hugo Boss.

Speaker #1: And third, we remain convinced of the long-term value creation potential of our business. Based on our two strong brands, a clear strategic roadmap, and disciplined execution, we remain focused on creating attractive shareholder returns over time.

Speaker #1: Thank you very much for your attention. We are now happy to take your questions.

Speaker #3: We will now begin the question and answer session. Analysts who wish to ask a question may press star and one on the telephone. You will hear a tone to confirm that you have entered the queue.

Operator: We will now begin the question and answer session. Analyst who wishes to ask a question may press star and one on the telephone. You will hear a tone to confirm that you've entered a queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume of the webcast while asking a question. In the interest of time, please limit yourself to two questions. Anyone with a question may press star and one at this time. Our first question comes from Grace Smalley from Morgan Stanley. Please go ahead.

Speaker #3: If you wish to remove yourself from the question queue, you may press star and two. The question is on the phone, and we request you to disable loudspeaker mode and turn off the volume of the webcast while asking your question.

Speaker #3: In the interest of time, please limit yourself to two questions. Anyone who has a question may press star and one at this time. Our first question comes from Grace Smelly from Morgan Stanley.

Speaker #3: Please go ahead.

Speaker #4: Hi, good morning. Thank you for taking my questions. The first one would be on EMEA. If you could just elaborate further on what you've seen in Europe as we move through the second quarter and then into July, I guess touching on both the direct and indirect impact from the events in the Middle East.

Grace Smalley: Hi. Good morning. Thank you for taking my questions. The first one will be on EMEA. If you could just elaborate further on what you've seen in Europe as we move through Q2 and then into July, I guess touching on both the direct and indirect impact from the events in the Middle East, so on the direct region, but also consumer sentiment and tourism. My second question would just be on gross margin. Very strong performance in Q2. As we look ahead to H2 of the year, should we be expecting a kind of similar level of year-over-year expansion in H2 as we did in Q2? Is there anything we should expect that's different in terms of the gross margin build in H2? Thank you very much.

Speaker #4: So on the direct region, but also consumer sentiment and tourism. And then my second question would just be on gross margin—very strong performance in Q2.

Speaker #4: As we look ahead to the second half of the year, should we be expecting a similar level of year-over-year expansion in the second half as we did in Q2, or is there anything we should expect that's different in terms of the gross margin build in the second half?

Speaker #4: Thank you very much.

Speaker #5: Thank you very much, Grace. I will take both of your questions. So perhaps starting with gross margin—first of all, I want to really reiterate that we are really happy with how we performed with our gross margin.

Yves Müller: Thank you very much, Grace Smalley. I will take your both questions. Perhaps starting with gross margin. First of all, I want to really reiterate that we are really happy how we performed with our gross margin, plus 200 basis points versus prior year. It's a very good performance thanks to a lot of sourcing efficiency, higher full price sales, lower markdowns, and some pricing effects. We are going in the right direction. We see that the execution of CLAIM 5 TOUCHDOWN is really bearing the fruits here. The majority of those effects will continue since we are committed to continue the execution of our CLAIM 5, especially if you look at the measurements that we are taking.

Yves Müller: Thank you very much, Grace. I will take your both questions. Perhaps starting with gross margin. First of all, I want to really reiterate that we are really happy how we performed with our gross margin, plus 200 basis points versus prior year. It's a very good performance thanks to a lot of sourcing efficiency, higher full price sales, lower markdowns, and some pricing effects. We are going in the right direction. We see that the execution of CLAIM 5 TOUCHDOWN is really bearing the fruits here. The majority of those effects will continue since we are committed to continue the execution of our CLAIM 5, especially if you look at the measurements that we are taking.

Speaker #5: Plus 200 basis points versus prior year. It's a very good performance, thanks to a lot of sourcing efficiency, higher full-price sales, lower markdowns, and some pricing effects.

Speaker #5: So, we are going in the right direction. We see that the execution of Claim 5 Touchdown is really bearing fruit here, and the majority of those effects will continue.

Speaker #5: Since we are committed to continuing the execution of our Claim Five, especially if you look at the measurements that we are taking—for example, from the product shortening point of view—we are reducing the collection complexity.

Yves Müller: For example, from the product assortment point of view, we are reducing the collection complexity that has a kind of triple effect that we are capable of really driving economies of scale in sourcing, while at the same time further reducing the number of vendors that we're having. We are placing a higher number of volume behind one order for a vendor. This is really helping us in our gross margin improvement. Also we stick to our game plan. We will continue to drive high-quality revenues over short-term volumes, this will also help us with lower markdowns, especially in the retail environment that we can influence on our own. Structurally, this is strategically intended is that our gross margin will be improving, I think there is more to come in the next quarters.

Speaker #5: That has a kind of ripple effect, that we are capable of really driving economies of scale in sourcing while at the same time further reducing the number of vendors that we're having.

Speaker #5: So we are placing a higher volume behind one order for a vendor. This is really helping us with our gross margin improvement.

Speaker #5: And also, we stick to our game plan. We will continue to drive high-quality revenues over short-term volumes, and this will also help us with lower markdowns, especially in the retail environment that we can influence on our own.

Speaker #5: So, structurally, this is strategically intended in that our gross margin will be improving. And I think there is more to come in the next quarters, and also long term, we want to get the gross margin up further, as we discussed.

Yves Müller: Also long-term wise, we want to get the gross margin up further as we discuss this. Regarding EMEA, I think you make a comment regarding the recent performance. I think I have already some comments during my presentations. Definitely, you have to keep in mind the direct impact of the Middle East region in our EMEA numbers. First of all, it's, I think, clear in comparison to Q1 that we operated the full quarter in this kind of situation of the Middle East crisis. Of course, this was not helping not only the UAE and Qatar, but also indirectly our wholesale business in Israel and in some adjacent countries in this kind of region. This was not helping. On top of this, I think, as we all know, that Hugo Boss is by majority exposed to European markets, including Middle East.

Speaker #5: Regarding EMEA, I think you made a comment regarding the recent performance. I think I already gave some comments during my presentations. So, definitely, you have to keep in mind the direct impact of the Middle East region on our EMEA numbers.

Speaker #5: So first of all, I think, clear comparison to Q1, that we operated the full quarter in this kind of situation of the Middle East crisis, and of course, this was not helping not only the UAE and Qatar but also indirectly our wholesale business in Israel and in some adjacent countries in this kind of region.

Speaker #5: So this was not helping. On top of this, I think, as we all know, Hugo Boss is by majority exposed to European markets, including the Middle East.

Speaker #5: It means, like, 65% of our business. We also saw some indirect effects coming from lower travel activities, and consumer sentiment was down. You have seen higher food and fuel prices, which led to the fact that people were going less to specific destinations.

Yves Müller: It means like 65% of our business. We saw also some indirect effects coming from lower travel activities, also consumer sentiment was down. You have seen higher fuel prices led to the fact that people were going less to specific destinations, also to outlets. Traffic was low, within the majority of a lot of countries like UK, Germany, and France, that was driving this kind of development.

Speaker #5: Also to outlets. So traffic was low within the majority of a lot of countries like the UK, Germany, and France. And that was driving this kind of development.

Speaker #4: Okay, thank you. And if I could just follow up, have you seen that continue in terms of current trading today, on the kind of European impact on consumer sentiment and tourism? And maybe a broader comment on current trading globally as well?

Grace Smalley: Okay. Thank you. If I could just follow up, have you seen that continue in terms of current trading to date on the kind of European impact on consumer sentiment and tourism and maybe a broader comment on current trading globally as well? Thank you.

Speaker #4: Thank you.

Speaker #5: Yeah, I think I would perhaps highlight the overall global, let's say, information around current trading. I mean, Grace, as you all know, we are not very specific regarding current trading.

Yves Müller: Yeah, I think I would perhaps highlight the overall global, let's say, information around current trading. Grace, as you all know, we are not very specific regarding current trading. I think we all should be aware of the fact that we are taking a lot of strategic measurements, and that we are in the middle of executing a lot of, let's say, strategic steps within our CLAIM 5 strategy. What I can say is, and what I want to say that for how we started in the quarter, and we've just started, it's just one third of this quarter. We are in line with our expectations, how we operate.

Speaker #5: I think we all should be aware of the effect that we are taking a lot of strategic measures, and that we are in the middle of executing a lot of, let's say, strategic steps within our CLAIM 5 strategy.

Speaker #5: So, what I can say is—and what I want to say is that regarding how we started in the quarter, we've just begun; it's just one third of the quarter.

Speaker #5: We are in line with our expectations for how we operate.

Speaker #4: Okay, perfect. Thank you very much, Yves.

Grace Smalley: Okay. Perfect. Thank you very much, Yves.

Speaker #3: The next question comes from Dar Manjari from RBC. Please go ahead.

Operator: The next question comes from Dhar Manjari from RBC. Please go ahead.

Speaker #4: Hi, good morning, Daniel, Yves, and Christian. Thank you for taking my questions. I also had two, if I may. My first question was on the "Führerstaat" extension.

Dhar Manjari: Hi. Morning, Daniel, Yves, and Christian. Thank you for taking my questions. I also have two, if I may. My first question was on the Filderstadt extension. I just wondered if you could give us some color on how we should think about the timeline of the ramp up there and what sort of savings we should expect as that gets up and running. My second question was a follow-up from Grace's question on gross margin. I just wondered if you could give us some more color on the sort of expectations for further sourcing efficiencies. You've obviously seen a lot of benefits so far, but in terms of work left to do, how much is left and how long should we expect sourcing efficiency benefits to persist? Thank you.

Manjari Dhar: Hi. Morning, Daniel, Yves, and Christian. Thank you for taking my questions. I also have two, if I may. My first question was on the Filderstadt extension. I just wondered if you could give us some color on how we should think about the timeline of the ramp up there and what sort of savings we should expect as that gets up and running. My second question was a follow-up from Grace's question on gross margin. I just wondered if you could give us some more color on the sort of expectations for further sourcing efficiencies. You've obviously seen a lot of benefits so far, but in terms of work left to do, how much is left and how long should we expect sourcing efficiency benefits to persist? Thank you.

Speaker #4: I just wondered if you could give us some color on how we should think about the timeline of the ramp-up there, and what sort of savings we should expect as that gets up and running.

Speaker #4: And then my second question was a follow-up to Grace's question on gross margin. I just wondered if you could give us some more color on the expectations for further sourcing efficiencies.

Speaker #4: You've obviously seen a lot of benefits so far, but in terms of work left to do, how much is left, and how long should we expect sourcing efficiency benefits to persist?

Speaker #4: Thank you.

Speaker #5: So, good morning, Manjari. Thank you very much for your questions. So, regarding Führerstaat, this is our flat goods warehouse close to Stuttgart, where we invested more than €100 million.

Yves Müller: Good morning, Manjari. Thank you very much for your questions. Regarding Filderstadt, this is our flat goods warehouse, close to Stuttgart, where we invested more than EUR 100 million. We have had now the go live in a very automated way. With this, we are now capable of insourcing our HUGO apparel operations, which has been outsourced to third party. Now with the winter campaign and the next campaigns coming in, we will directly route them to Filderstadt. We terminated the contract with the third party for HUGO apparel, and this will give us efficiency gains in the low double-digit million EUR amount going forward, starting actually with Q3 going forward. All these measurements will make us more efficient when it comes to unit cost, how we operate.

Speaker #5: We have now had the go-live in a very automated way. And with this, we are now capable of insourcing our HUGO apparel operations, which had been outsourced to a third party.

Speaker #5: So, now with the winter campaign and the next campaign coming in, we will directly route them to Führerstaat. So, we terminated the contract with the third party for Hugo apparel.

Speaker #5: And this will give us efficiency gains in the low double-digit million euro amount going forward, starting actually with Q3. So all these measures will make us more efficient when it comes to unit cost and how we operate. Plus, of course, we will have some savings on the transportation piece once we deliver, especially wholesale and retail, to our European customers because we can combine this with Hugo and Boss together.

Yves Müller: Plus, of course, we will have some savings on the transportation piece once we deliver, especially wholesale and retail to our European customers because we can combine this with HUGO and BOSS together.

Speaker #5: Regarding gross margin, we keep on going, especially with product assortment and collection complexity. We intend to further reduce the collection complexity and further intend to reduce our vendors.

Yves Müller: Regarding gross margin, we keep on going, especially with product assortment collection complexity. We intend to further reduce the collection complexity. We further intend to reduce our vendors. This is a phenomenon that's going to prevail over the next 4 quarters, as I can say. This will keep on going. Also on the air freight share, as a matter of fact, we were finalizing the year 2025 with still a high single-digit number. We want to really completely go have a kind of no air freight policy going forward and have just the exceptions. There's still more in the pipeline to come when it comes to sourcing efficiency, really to be more efficient. I still want to highlight this trickle-down effect. Once we reduce the assortment, this is also really helping us on the gross margin side.

Speaker #5: So this is a phenomenon that's going to prevail over the next four quarters, as I can say. So this will keep on going.

Speaker #5: Also on the air freight share, as a matter of fact, we were finalizing the year '25. We're still at a high single-digit number. We really want to completely have a kind of no air freight policy going forward and just have exceptions.

Speaker #5: So we are so there's still more in the pipeline to come when it comes to sourcing efficiency really to be more efficient. But I want still want to highlight this dripple down effect.

Speaker #5: Once we reduce the assortment, this is also really helping us on the gross margin side.

Speaker #4: Very clear. Thank you.

Dhar Manjari: Very clear. Thank you.

Manjari Dhar: Very clear. Thank you.

Speaker #3: Next question comes from Jürgen Kolb from Kepler Cheuvreux. Please go ahead.

Operator: Next question comes from Jürgen Kolb from Kepler Cheuvreux. Please go ahead.

Speaker #2: Thanks very much indeed, guys. Two questions. First one, we're deeper in the year. I was going—I was wondering if you could maybe share some thoughts on your audit book, after, obviously, sales are down 9%. At some stage, the switch has to flip again to growth.

Jürgen Kolb: Thanks very much indeed, guys. Two questions. First one, we're deeper in the year. I was wondering if you could maybe share some thoughts on your order book. After, obviously, sales are down 9%, at some stage, the switch has to flip again to growth. Maybe a few comments on what you're seeing maybe for early 2027 in terms of orders from customers. Secondly, specifically on HUGO and BOSS Women, how far are you with the realignment process there? Is that all going according to plan? Also here, maybe an add-on comment from what retailers are giving you as a feedback. That would be very helpful. Thank you very much, guys.

Speaker #2: So maybe a few comments on what you're seeing, maybe for early 2027, in terms of orders from customers. And then, secondly, specifically on Hugo and Boss Woman, how far are you with the realignment process there?

Speaker #2: Is all of that going according to plan? And also, maybe here an additional comment on what retailers are giving you as feedback—that would be very helpful.

Speaker #2: Thank you very much, guys.

Speaker #1: Thank you, Jürgen. I'll take this question about the order book. So, in line with what Claim Five touched on, we are deliberately sharpening our wholesale distribution by reducing long-tail exposure.

Daniel Grieder: Thank you, Jürgen. I take this question about the order book. In line with CLAIM 5 TOUCHDOWN, we are deliberately sharpening our wholesale distribution by reducing long-tail exposure. We also do prioritize full price quality over volume. That's a clear measurement that we decided to do, and building an even healthier order book going forward. Against this backdrop, as well as the still challenging macroeconomic environment and continued inventory discipline amongst wholesale partners, order intake remains below the prior year level. That's clear. Importantly, engagement with our key strategic partner remains strong, giving us confidence in the long-term development of the wholesale business. We are having a very strong relationship to all our key customers. When you see our visibility in the stores, it's stronger. We continuously gain space in the stores.

Speaker #1: We also do prioritize full-price quality over volume. That's a clear measurement that we decided to implement, and we're building an even healthier order book going forward.

Speaker #1: Against this backdrop, as well as the still challenging macroeconomic environment and continued inventory discipline amongst wholesale partners, order intake remains below the prior-year level.

Speaker #1: That's clear. But importantly, engagement with our key strategic partner remains strong, giving us confidence in the long-term development of the wholesale business. We are maintaining a very strong relationship with all our key customers.

Speaker #1: When you see us, our visibility in the stores is stronger. We continuously gain space in the stores. I would like to underline our sub-brands—the initiative that we took, or the strategic initiative we took in the beginning to add sub-brands—which helps us really expand our footprint in retail, especially in department stores.

Daniel Grieder: Would like to underline our sub-brands, the initiative that we take or the strategic initiative we take in the beginning to add sub-brands that helps us to really expand our footprint in the retail, especially in department stores. Sales through numbers show positive, and we remain absolutely positive that the results of our wholesale business continue to be positive, especially in BOSS Men's. Womenswear, I think we have also did a lot of progress there. It's always a bit early to see, but I think we are undertaking, and Kerstin has undertaken already activities to address the current challenges in the business. The implementation or the real results you're going to see in H2 2027, when the real collection is at the moment fully developed under her direction.

Speaker #1: And sales through numbers show positive, and we remain absolutely positive that the results of our wholesale business continue to be positive, especially in BOSS Men's.

Speaker #1: Women's wear. I think we have also made a lot of progress there. It's always a bit early to see, but I think we have—we actually, you know, we are undertaking, and Kerstin has undertaken already, activities to address the current challenges in the business.

Speaker #1: But the implementation, or, you know, the real results, you're going to see in the second part of 2027, when the real collection is, at the moment, fully developed under her direction.

Speaker #1: But anyway, quick wins have already immediately improved some results. And we are positive that we are going to gain market share back in women's wear.

Daniel Grieder: Anyway, quick wins has already immediately improved some results, and we are positive that we're going to gain market shares back on Womenswear, but it always takes some time, as we said, we don't want to go too fast. We want to build it on full price, on a long-term view. Therefore, we are not rushing into something that is on risk. Again, Kerstin has really put the new handwriting in, and that you will see in H2 next year.

Speaker #1: But it always takes some time, as we don't want to—as we said, we don't want to go too fast. We want to build it on full price, on a long-term view; therefore, we are not rushing into something that is a risk.

Speaker #1: But again, Kerstin has really put the new handwriting in, and that you will see in the second half of next year.

Speaker #2: Very good. Very good. Maybe a quick follow-up. You mentioned you opened the first green store in North America. What do you see as a potential target number for that specific collection?

Jürgen Kolb: Very good. Maybe a quick follow-up. You mentioned you opened the first BOSS Green store in North America. What do you see as a potential target number for that specific collection?

Speaker #1: Well, that's a bit early to say. However, the demand for green is really growing because, knowing all these brands coming from Asia, to us—let's talk about Arc'teryx—and actually, the fact that we are the brand that has this sport element combined with fashion really gives us a unique placing in the market.

Daniel Grieder: Well, that's a bit early to say. However, the demand for BOSS Green is really growing because knowing all these brands coming from Asia to us, let's talk about Arc'teryx. Actually that we are the brand that has this sport element combined with fashion really gives us a unique placing in the market. As you know, we already had golf wear, we had tennis wear

Speaker #1: As you know, we already have golf wear. We have tennis wear. We also have a capsule collection in the auto industry.

Daniel Grieder: We have a capsule collection also in the auto industry, especially our coming event, the Australian Open, where we have taken position as the outfit of the Australian Open, will help us to further put relevance into that market. Always with a positioning, not as a completely sport brand, but a sport/fashion brand that goes into that area. We also, with our testimonials like Taylor Fritz, it shows clearly that the interest of having and wearing fashion brands on these events is growing, and we were one of the first that have taken there a step. We are very positive on BOSS Green. There's more shops to come, and so far the results are very promising.

Speaker #1: And especially our upcoming event, the Australian Open, where we have taken position as the outfitter of the Australian Open, will help us to further put relevance into that market.

Speaker #1: Always with a positioning not as a you know completely sport brand but a sports less fashion brand that goes into that area and we also with our testimonials like Taylor Fritz and they show and it shows clearly that the interest of having and wearing fashion brands on these events is growing and we were one of the first that has taken their step.

Speaker #1: So, we are very positive on BOSS Green. There are more shops to come, and so far the results are very promising.

Speaker #2: Got it. Thanks very much, guys. All the best.

Jürgen Kolb: Got it. Thanks very much, guys. All the best.

Speaker #3: Next question comes from Thomas Chauvet. Please go ahead.

Operator: Next question comes from Thomas Chauvet. Please go ahead.

Speaker #4: Good morning, gentlemen. Two questions, please. The first one on the XP loyalty program: you indicated a 16% increase in membership to 14 million customers. That's a big number.

Thomas Chauvet: Good morning, gentlemen. Two questions, please. The first one on the XP loyalty program. You indicated a 16% increase in membership to 14 million customers. That's a big number. Could you give us some color on how the average XP member compares to a normal BOSS customer, if I can say, in terms of age or frequency of visit, average basket? I suspect a lot of these members are recruiting online. How do you explain the directly operated digital channel was down double-digit in H1 when the XP membership increased by a double-digit %? My second question on Frasers' shareholding, and your earlier comment, Daniel.

Speaker #4: Could you give us some color on how the average XP member compares to a normal BOSS customer, if I can say, in terms of age, frequency of visits, or average basket?

Speaker #4: And I suspect a lot of these members are recruiting online. So how do you explain that the directly operated digital channel was up double digits in the first half, when the XP membership increased by a double-digit percentage?

Speaker #4: And my second question is on Frasers' shareholding. In your earlier comment, Daniel, after their recent options exercise and the initial results of the offer before the extension to next week, they have close to 38% of the capital, if I'm not mistaken, and an additional 30% exposure through short put positions.

Thomas Chauvet: After their recent options exercise and the initial results of the offer before the extension to next week, they have close to 38% of the capital, if I'm not mistaken, an additional 30% exposure through short put positions, and the Marzotto family is still at 14%. The free float is now just under 50%. Could you comment on how, obviously, the nature and frequency of your engagement with them has evolved maybe a bit beyond the existing wholesale relationship? How do you manage good governance and the independence of the company considering also that Frasers' CEO sits at the Hugo Boss Supervisory Board, which is maybe a little bit unusual in a way? Thank you.

Speaker #4: And the Marzotto family is still at 14%. So the free float is now just under 50%. Could you comment on how, obviously, the nature and frequency of your engagement with them has evolved—maybe a bit beyond the existing wholesale relationship?

Speaker #4: How do you manage good governance and the independence of the company, considering also that phrase of the CEO sitting on the Hugo Boss Supervisory Board, which, you know, is maybe a little bit unusual in a way?

Speaker #4: Thank you.

Speaker #2: For your two questions, I'll start with the XP. So, we interrogated this program nearly two years ago, and we always said that we do not just want to have customers who come into our store.

Daniel Grieder: For your 2 questions. I start with the XP. We integrated this program nearly 2 years ago, and we always said that we not just want to have customers that come into our store. Our intention is to turn customers into fans. What this XP program is just giving us is really demonstrate with clear results that these customers shop more, either online or also in our stores. The return on investment is good, but we are gaining these customers not just with discount. We give them an added value. We invite them to our events that we are organizing. We really get to go close with them in relationship and with the brand and activate the brand in their mind. The result also to gain younger consumers through that program is exactly what our aim was in the past.

Speaker #2: So our intention is to turn customers into fans. And what this XP program is really giving us is a demonstration with clear results that these customers shop more, either online or in our stores.

Speaker #2: So the return on investment is good but we aren't gaining these customers not just with you know with discount. We give them an added value.

Speaker #2: We, you know, invite them to our events that we are organizing. We really got close with them in relationship and with the brand, and activate the brand in their mind.

Speaker #2: And the results also, to gain younger consumers through that program, are exactly what our aim was in the past. And you know, we always say it doesn't matter where the customer buys.

Daniel Grieder: We always say it doesn't matter where the customer buy. Is it online or offline? As long as he is a loyal BOSS customer, that's what counts. Some goes in the store, some is online, it doesn't matter. With our omni-channel, we want to be omnipresent. I think with the customer loyalty program, we have the perfect part and the perfect program in place, I would say. That is the first question, then if we come back to Frasers. First of all, I want to say that we maintain a regular and constructive dialogue with all of our shareholders, and especially also with Frasers Group. We value also Frasers Group as a long-term shareholder and expect to continue our constructive and very professional relationship with them ongoing.

Speaker #2: Is it online or offline? As long as he is a loyal BOSS customer, that's what counts. And, you know, some goes in the store, some is online.

Speaker #2: It doesn't matter. We have to be omni with our omnichannel; we want to be omnipresent. And I think with the customer loyalty program, we have the perfect part and the perfect program in place, I would say.

Speaker #1: That is the first question. And then, if we come back to Frasers—so, first of all, I want to say that we maintain a regular and constructive dialogue with all of our shareholders, and especially also with Frasers Group.

Speaker #1: We also value phrases group as a long-term shareholder and expect to continue our constructive and very professional relationship with them ongoing. At the same time, you know we have a clear strategic framework through "Claim 5"—"Touchdown" in our focus—and we remain also disciplined to execute that strategy.

Daniel Grieder: At the same time, we have a clear strategic framework through CLAIM 5 TOUCHDOWN in our focus, we remain also disciplined to execute that strategy. We get full support from our Supervisory Board. We get full support also from Frasers'. We can expect that we continue our strategy and that there is no change on the strategy whatsoever. We are very positive and pleased with how much support we get also from the Marzotto as a main shareholder. That is continuing on a very good pace, I would say.

Speaker #1: And we get full support from our advisory board. We get full support also from Frasers, so we can expect that we, you know, continue our strategy and that there is no change in the strategy whatsoever.

Speaker #1: So, we are very positive and pleased with how much support we get, also from Marzotto as a main shareholder. So, that is continuing at a very good pace, I would say.

Speaker #1: And then also, you know, just on what we said with the, you know, phrases confirmed in the official document for the voluntary takeover offer only a few weeks ago, that they fully support the chairman of the Supervisory Board, the entire Management Board, and also me.

Yves Müller: On what we said with the, Frasers confirmed in the official document for the voluntary takeover offer only a few weeks ago that they fully support the chairman of the Supervisory Board, the entire Management Board, and also me. I think that was clear statement there. Following the rumors, Frasers also confirmed this position to us, and again, confirmed it again. There is nothing more to comment on the rumors. Anything else? I think that's it from your question.

Daniel Grieder: On what we said with the, Frasers confirmed in the official document for the voluntary takeover offer only a few weeks ago that they fully support the chairman of the Supervisory Board, the entire Management Board, and also me. I think that was clear statement there. Following the rumors, Frasers also confirmed this position to us, and again, confirmed it again. There is nothing more to comment on the rumors. Anything else? I think that's it from your question.

Speaker #1: And I think that was a clear statement there. So, you know, following the rumors, phrases also confirmed this position to us, and again confirmed it again.

Speaker #1: So, there is, you know, nothing more to comment on the rumors. Anything else? I think that's it from your questions.

Speaker #4: That's clear. Thank you, Daniel. Thank you.

Thomas Chauvet: That's clear. Thank you, Daniel. Thank you.

Speaker #3: As a reminder, if you wish to register for a question, please press star followed by one. The next question comes from Suzanna Putz from UBS.

Operator: As a reminder, if you wish to register for a question, please press star followed by one. The next question comes from Zuzanna Pusz from UBS. Please go ahead.

Speaker #3: Please go ahead.

Speaker #4: Hello, it's Rob from UBS. I just had one question about gross margin development. It was very impressive in Q2, but on the last call you mentioned that you are pretty confident about the outlook for raw materials into 2026.

[Analyst] (UBS): Hello, it's Rob from UBS. I just had one question about gross margin development. It was very impressive in Q2. Last call, you mentioned that you are pretty confident about the outlook for raw materials into 2026. How should we be thinking about 2027 given the recent oil prices? I know it's quite volatile. It came off a bit, again, go up. How should we be thinking about 2027? We hear a lot of efficiencies coming from supply chain, but is there going to be a headwind? If you could even quantify the raw materials headwind, that would be great. Thank you.

Speaker #4: How should we be thinking about 2027, given the recent oil prices? I know it's quite volatile. It came off a bit, then went up again.

Speaker #4: So how should we be thinking about 2027? We hear a lot about efficiencies coming from the supply chain, but is there going to be a headwind, or—if you could even quantify the raw materials headwind, that would be great.

Speaker #4: Thank you.

Speaker #2: Thank you very much, Rob, for your question. First of all, regarding the raw materials, I think it's clear for 2026 that we expect no material effect coming from raw materials.

Yves Müller: Thank you very much, Rob, for your question. First of all, regarding the raw materials, I think it's clear for 2026, we expect no material effect coming from raw materials. Still going forward, you know that we are living in volatile markets going up and down. Also some other influences regarding, for example, wool prices are happening. On the other side, you have also the freight and the spot rates there. I wouldn't view this as a big headwind going into next year. I think we are well aware of this, and we can manage this. For the time being, the visibility what we are having, with our internal measurements, we can by far outweigh any, let's say, external effects also coming into the year 2027.

Speaker #2: And still, going forward, I mean, you know that we are living in volatile markets, going up and down. Also, some other influences—regarding, for example, wool prices—are happening.

Speaker #2: On the other side, you also have the freight and the spot rates there. I wouldn't view this as a big headwind going into next year.

Speaker #2: I think we are well aware of this and we can manage this. And for the time being, with the visibility we have and with our internal measurements, we can by far outweigh any, let’s say, external effects.

Speaker #2: Also coming into the year 2027.

Speaker #3: The next question comes from Chiara Battistini from JP Morgan. Please go ahead.

Operator: Next question comes from Chiara Battistini from J.P. Morgan. Please go ahead.

Operator: Next question comes from Chiara Battistini from JPMorgan. Please go ahead.

Speaker #5: Good morning. Thank you very much for taking my questions. I have two. The first one is if you could already share some initial color or outlook on the pricing for next year, for fiscal '27.

Chiara Battistini: Good morning. Thank you very much for taking my questions. I have two. The first one, if you could share already some initial color or outlook on the pricing for next year, for fiscal 2027. The second question on OpEx into H2. Can you please remind us on marketing, how much that was down in Q2? Also to think about the phasing of the marketing spend in H2, please. Thank you.

Speaker #5: And the second question on OPEX into H2. Can you please remind us, on marketing, how much that was down in Q2 and also how to think about the phasing of the marketing spend in H2, please?

Q2 2026 Hugo Boss AG Earnings Call

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