HUGO BOSS AG Sponsored ADR (BOSSY) AI Stock Analysis

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HUGO BOSS AG Sponsored ADR

(OTC:BOSSY)

Rating:81Outperform

Price Target:

$10.50

▲(8.70%Upside)

HUGO BOSS AG achieves a strong overall stock score driven by robust financial performance and positive technical indicators. The company demonstrates effective cash flow management and solid revenue growth, although there is room for improvement in profit margins. The stock's valuation is attractive, with a reasonable P/E ratio and a healthy dividend yield. The technical analysis reflects bullish momentum, further supporting the positive outlook.

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

Market Cap

$3.33B

Dividend Yield3.16%

Average Volume (3M)7.00

Price to Earnings (P/E)14.7

Beta (1Y)0.80

Revenue Growth0.19%

EPS Growth-20.15%

CountryUS

Employees18,376

SectorConsumer Cyclical

Sector Strength69

IndustryApparel - Manufacturers

Share Statistics

EPS (TTM)0.58

Shares Outstanding352,000,000

10 Day Avg. Volume0

30 Day Avg. Volume7

Financial Highlights & Ratios

PEG Ratio-20.87

Price to Book (P/B)2.00

Price to Sales (P/S)0.00

P/FCF Ratio5.74

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$10.50

Price Target Upside8.70% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

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:May 06, 2025

(Q4-2024)

% Change Since: 19.85%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with significant achievements in sales growth and strategic execution, particularly in the Americas and through digital expansion. However, challenges were evident in the Asia Pacific region and the overall retail environment, with specific impacts from the Chinese market and retail impairments. The company remains optimistic about its CLAIM 5 strategy and future profitability improvements.

Q4-2024 Updates

Positive Updates

Record Group Sales

HUGO BOSS achieved group sales of €4.3 billion, marking a record level despite a difficult market environment.

Successful CLAIM 5 Strategy

Continued execution of the CLAIM 5 strategy resulted in enhanced brand relevance, with BOSS and HUGO driving revenue improvements.

Strong Regional Performance in Americas

The Americas region delivered 8% growth, with the U.S. market seeing high single-digit growth, driven by improvements across all touchpoints.

Robust Wholesale and Digital Growth

Brick-and-mortar wholesale delivered 8% growth, and digital sales increased by 6%, with digital now accounting for 20% of group sales.

Improved Gross Margin

Gross margin improved by 30 basis points to 61.8% in 2024, supported by sourcing efficiency and reduced airfreight usage.

Increased Free Cash Flow

Free cash flow reached €497 million, marking a substantial increase compared to the prior year.

Dividend Increase

A dividend of €1.40 per share was proposed for fiscal year 2024, representing an increase of €0.05 versus the prior year.

Negative Updates

Challenging Market Environment

The global market environment deteriorated, with muted consumer demand impacting business performance, especially over the summer months.

Decline in Asia Pacific Sales

Sales in Asia Pacific declined 2% year-over-year, with China experiencing a low-teens decline due to muted local demand.

Retail Impairment Charges

EBIT development was negatively impacted by a €50 million year-on-year swing in noncash impairment charges related to brick-and-mortar retail.

Flat Brick-and-Mortar Retail Growth

Brick-and-mortar retail revenues remained on par with the prior year level, affected by lower store traffic in key markets such as China and the U.K.

Company Guidance

In the Q4 Full Year 2024 Results Conference Call, HUGO BOSS reported a record group sales of €4.3 billion and an EBIT of €361 million, despite challenging market conditions. The brand achieved a 3% increase in overall sales, driven by strong performances in the Americas (8% growth) and EMEA (3% growth), while sales in Asia Pacific declined by 2%. Digital sales grew by 6%, contributing to digital's 20% share of total sales. EBIT margin stood at 8.4%, while the gross margin improved to 61.8% due to sourcing efficiencies. The company also highlighted the growth in its loyalty program, exceeding 10 million members, and the successful launch of HUGO Blue. Looking forward to 2025, HUGO BOSS anticipates sales to range between €4.2 billion and €4.4 billion, with an expected EBIT increase of 5% to 22%, driven by further cost efficiencies and gross margin improvements.

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

Positive

Last Price9.66

Price Trends

50DMA

9.17

Positive

100DMA

8.57

Positive

200DMA

8.62

Positive

Market Momentum

MACD

0.19

Positive

RSI

58.36

Neutral

STOCH

18.01

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOSSY, the sentiment is Positive. The current price of 9.66 is above the 20-day moving average (MA) of 9.40, above the 50-day MA of 9.17, and above the 200-day MA of 8.62, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 18.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOSSY.

HUGO BOSS AG Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOSSY	81 Outperform	$3.33B	14.75	14.92%	3.16%	0.19%	-20.15%
RL	76 Outperform	$17.54B	24.94	29.49%	1.46%	6.75%	19.71%
ZGN	76 Outperform	$3.68B	27.21	8.89%	1.51%	2.26%	-37.52%
Sector *	64 Neutral	£1.71B	10.36	6.12%	4.48%	0.55%	-32.84%
UA	62 Neutral	$2.84B	―	-9.95%	―	-7.47%	-131.70%
UFI	55 Neutral	$85.38M	―	-15.73%	―	2.51%	32.95%
VFC	49 Neutral	$4.78B	―	-2.39%	3.67%	-7.52%	94.28%

* Consumer Cyclical Sector Average

Performance Comparison

BOSSY

HUGO BOSS AG Sponsored ADR

9.66

1.50

18.38%

Ralph Lauren

289.49

123.74

74.65%

Under Armour

6.46

-0.07

-1.07%

UFI

Unifi

4.65

-1.30

-21.85%

VFC

12.26

-3.68

-23.09%

ZGN

Ermenegildo Zegna

9.02

-2.12

-19.03%

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: Jun 05, 2025