HUGO BOSS : The drift is on

Research evidence excerpt

HUGO BOSS : The drift is on

EQUITIES

LUXURY GOODS

HUGO BOSS UNDERPERFORMPRICE* EUR37.0  TARGET PRICE EUR27 (DOWNSIDE 27%)

HUGO BOSS ADR UNDERPERFORMPRICE* USD8.8  TARGET PRICE USD6.5 (DOWNSIDE 26%)

The drift is on

Topline dynamics aligned with December strategy in 1Q12 MAY 2026

Securities Research Report In Dec-25, Hugo Boss shared its FY26-28 Touchdown gameplan (Tackled before Touchdown)

Production time: 05:19* (London time) calling for SKU reduction, network right-sizing, wholesale re-focus, Womenswear re-work and HUGO

Research Analysts & Publishing Entities repositioning. With lower markdowns and selective price hikes – coupled with sourcing efficiencies

Anthony Charchafji – 1Q26 results reflected the strategy. OSG was -6% with Hugo -21% and Womenswear worse.

BNP Paribas London Branch Wholesale underperformed at -10% whilst Boss Menswear was relatively resilient in Retail. Gross(+44) 20 3430 8536

anthony.charchafji@uk.bnpparibas.com margin expanded by 110bp on sourcing efficiencies. EBIT was down 43% y/y.

Antoine Belge Is the drift under control?BNP Paribas SA

(+33) 01 44 95 68 51 Back in March, management expected 1Q/4Q to be weaker than 2Q/3Q. Two months later, they now

antoine.belge@bnpparibas.com see further softening of the trends in retail, not just in the Middle East but also on tourism flows

(Europe/UK). It also seems that the decision to not participate in mid-season sales is proving moreMelania Grippo

BNP Paribas SA painful than expected. Whilst it should benefit gross margin, the risk of being forced back into

(+39) 02 89 63 1724 discounting to deliver guidance (-M/HSD% OSG, EUR300-350m EBIT) should not be ruled out.

melania.grippo@bnpparibas.com

Marketing cut of 15% in 1Q26 was a surprise and should be partially recovered in the next few

quarters.