HUGO BOSS AG Sponsored ADR (BOSSY) AI Stock Analysis

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HUGO BOSS AG Sponsored ADR

(OTC:BOSSY)

Rating:78Outperform

Price Target:

$11.50

▲(19.17% Upside)

HUGO BOSS AG has a strong financial foundation with robust revenue growth and effective cash flow management. The positive technical indicators reinforce a bullish outlook. However, the stock's valuation is moderate, limiting its immediate income appeal. Addressing declining profit margins could further enhance its attractiveness.

HUGO BOSS AG Sponsored ADR (BOSSY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.31B

Dividend Yield3.19%

Average Volume (3M)22.00

Price to Earnings (P/E)13.8

Beta (1Y)0.83

Revenue Growth1.62%

EPS Growth-0.76%

CountryUS

Employees18,376

SectorConsumer Cyclical

Sector Strength71

IndustryApparel - Manufacturers

Share Statistics

EPS (TTM)0.79

Shares Outstanding352,000,000

10 Day Avg. Volume56

30 Day Avg. Volume22

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.37

Enterprise Value/Revenue1.05

Enterprise Value/Gross Profit1.71

Enterprise Value/Ebitda6.37

Forecast

1Y Price Target

$11.50

Price Target Upside19.17% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

HUGO BOSS AG Sponsored ADR Business Overview & Revenue Model

Company DescriptionHUGO BOSS AG is a leading global fashion and lifestyle group, primarily involved in the design, development, and distribution of premium apparel and accessories. The company operates in the fashion industry, offering a wide range of high-quality clothing, including menswear, womenswear, and youth apparel, under its core brands BOSS and HUGO. Known for its sophisticated and innovative designs, HUGO BOSS serves customers worldwide through a blend of retail, wholesale, and digital channels.

How the Company Makes MoneyHUGO BOSS AG generates revenue through multiple streams, primarily from the sale of its branded apparel and accessories. The company's revenue model is centered around its two main brands, BOSS and HUGO, which cater to different market segments and fashion preferences. A significant portion of its income comes from its retail operations, including owned retail stores, outlets, and an extensive online presence that allows for direct consumer sales. Additionally, HUGO BOSS engages in wholesale activities, distributing its products through a network of third-party retailers and department stores globally. The company also benefits from licensing agreements, which allow third parties to produce and sell products under the HUGO BOSS brand, such as fragrances, eyewear, and watches, thus diversifying its revenue streams. Key factors contributing to its earnings include brand strength, global expansion strategies, effective supply chain management, and strategic partnerships that enhance its market reach and consumer engagement.

HUGO BOSS AG Sponsored ADR Earnings Call Summary

Earnings Call Date:Aug 05, 2025

(Q2-2025)

% Change Since: 2.66%|

Next Earnings Date:Nov 04, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mix of positive and negative aspects. While there are solid performances in certain segments like BOSS Menswear and digital sales, challenges persist with declines in BOSS Womenswear and HUGO, as well as continued softness in key markets like China. The company's strict cost management and strategic initiatives are positive, but the overall macroeconomic environment remains challenging.

Q2-2025 Updates

Positive Updates

Solid Second Quarter Performance

Group sales increased by 1% to just over EUR 1 billion, marking an improvement compared to Q1 when sales were down by 2%. EBIT rose by 15% to EUR 81 million, with an EBIT margin increase of 120 basis points to 8.1%.

Strong Performance of BOSS Menswear

Revenues at BOSS Menswear increased by 5% in Q2, driven by the successful launch of the Beckham x BOSS collection, which outperformed previous collaborations on social media.

Growth in EMEA and Americas Regions

Sales in the EMEA region increased by 3% year-over-year, and revenues in the Americas grew by 2%, indicating a return to growth following a softer start to the year.

Digital Business Growth

Digital sales grew by 7%, primarily driven by stronger digital sales through partners, demonstrating continued growth in the digital segment.

Strict Cost Management

Operating expenses were reduced by 3% year-over-year, resulting in strong cost leverage of 120 basis points. EBIT margin improved to 8.1%.

Negative Updates

Decline in BOSS Womenswear and HUGO Revenues

BOSS Womenswear revenues declined by 8%, while HUGO was down 12%, reflecting the impact of transitional changes and strategic adjustments in product assortments and distribution.

Continued Softness in China

Sales in the Asia Pacific region declined by 5%, largely due to muted consumer confidence in China, impacting demand in Q2.

Challenges in Brick-and-Mortar Retail

Brick-and-mortar retail sales ended 1% below the prior year level, with store traffic continuing to decline, despite slight improvements in conversion rates and sales per transaction.

Inventory and Trade Net Working Capital Increase

Trade net working capital increased by 5% due to a 7% rise in inventories, driven by higher goods in transit and a planned increase in inventory coverage, particularly in the U.S.

Company Guidance

During the Q2 2025 Results Conference Call, HUGO BOSS reported a solid performance with a 1% increase in group sales, reaching over EUR 1 billion, and a 15% rise in EBIT to EUR 81 million, translating to an EBIT margin of 8.1%. BOSS Menswear saw a 5% revenue increase, while BOSS Womenswear and HUGO experienced declines of 8% and 12%, respectively. Regionally, sales grew by 3% in EMEA and 2% in the Americas, whereas Asia Pacific sales declined by 5%. Brick-and-mortar retail sales decreased by 1%, with wholesale sales growing by 3% and digital business sales increasing by 7%. The company maintained a stable gross margin of 62.9% due to sourcing efficiencies and reduced airfreight costs. Operating expenses decreased by 3%, emphasizing cost discipline. Looking forward, HUGO BOSS reaffirmed its FY2025 outlook, expecting group sales between EUR 4.2 billion and EUR 4.4 billion, with EBIT rising to EUR 380-440 million, achieving an EBIT margin of 9-10%.

HUGO BOSS AG Sponsored ADR Financial Statement Overview

Summary

HUGO BOSS AG shows a solid financial performance with strong revenue growth and efficient cash flow management. While there is a need to address declining profit margins, the company's balance sheet remains stable with moderate leverage and improved equity.

Income Statement

Very Positive

HUGO BOSS AG has demonstrated a strong revenue growth with a 10.7% increase from 2022 to 2023, and a consistent gross profit margin of around 61.7% in 2023. However, the EBIT margin has declined slightly from 9.8% to 8.5%, indicating some operational cost pressures. The net profit margin also decreased from 6.2% to 5.0%, suggesting a need for improved cost management.

Balance Sheet

Positive

The company's debt-to-equity ratio is 0.88, showing a moderate level of leverage, which is reasonable for the industry. Return on equity improved to 15.0%, reflecting strong shareholder returns. The equity ratio improved to 38.2%, indicating a solid financial structure, though the company could benefit from reducing debt.

Cash Flow

Very Positive

HUGO BOSS AG exhibited robust cash flow management with a significant increase in free cash flow by 426.8% from 2022 to 2023. The operating cash flow to net income ratio is 3.68, highlighting effective cash generation beyond profitability. Free cash flow to net income ratio is 1.93, demonstrating strong cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.31B	4.20B	3.65B	2.79B	1.95B
Gross Profit	2.66B	2.58B	2.26B	1.72B	1.19B
EBITDA	771.94M	744.42M	656.40M	558.72M	220.54M
Net Income	213.47M	258.37M	209.50M	137.34M	-219.18M
Balance Sheet
Total Assets	3.78B	3.47B	3.13B	2.74B	2.57B
Cash, Cash Equivalents and Short-Term Investments	259.96M	118.33M	188.74M	312.16M	145.99M
Total Debt	1.25B	1.12B	914.10M	912.31M	1.13B
Total Liabilities	2.33B	2.16B	1.99B	1.80B	1.81B
Stockholders Equity	1.43B	1.29B	1.12B	925.39M	753.81M
Cash Flow
Free Cash Flow	498.32M	94.53M	167.01M	556.56M	161.83M
Operating Cash Flow	785.51M	393.64M	357.26M	658.11M	239.91M
Investing Cash Flow	-288.60M	-297.64M	-191.70M	-99.01M	-75.75M
Financing Cash Flow	-404.73M	-122.44M	-307.30M	-407.64M	-167.29M

HUGO BOSS AG Sponsored ADR Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price9.65

Price Trends

50DMA

9.37

Positive

100DMA

8.73

Positive

200DMA

8.70

Positive

Market Momentum

MACD

0.03

Positive

RSI

49.21

Neutral

STOCH

59.82

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOSSY, the sentiment is Neutral. The current price of 9.65 is above the 20-day moving average (MA) of 9.63, above the 50-day MA of 9.37, and above the 200-day MA of 8.70, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.21 is Neutral, neither overbought nor oversold. The STOCH value of 59.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BOSSY.

HUGO BOSS AG Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOSSY	78 Outperform	$3.31B	13.80	16.13%	3.19%	1.62%	-0.76%
RL	76 Outperform	$17.48B	23.03	32.55%	1.13%	9.61%	21.14%
ZGN	65 Neutral	$3.14B	23.26	8.89%	1.78%	2.26%	-37.52%
Sector *	61 Neutral	$17.22B	11.58	-7.48%	3.16%	1.46%	-15.87%
VFC	48 Neutral	$4.77B	56.22	7.83%	2.95%	-7.41%	―
UFI	48 Neutral	$81.34M	―	-15.73%	―	2.51%	32.95%
UA	46 Neutral	$2.15B	21.55	5.50%	―	-8.02%	―

* Consumer Cyclical Sector Average

Performance Comparison

BOSSY

HUGO BOSS AG Sponsored ADR

9.58

1.61

20.20%

Ralph Lauren

299.68

139.66

87.28%

Under Armour

4.88

-2.94

-37.60%

UFI

Unifi

4.46

-1.15

-20.50%

VFC

12.21

-5.22

-29.95%

ZGN

Ermenegildo Zegna

7.92

-2.09

-20.88%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025