Hugo Boss (BOSS) AI Stock Analysis

• Market Cap: €2.68B
• Dividend Yield: 3.1%
• Average Volume (3M): 211.58K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.18
• Revenue Growth: 1.18%
• EPS Growth: -19.47%
• Country: DE
• Employees: 18,376
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.51
• Shares Outstanding: 70,400,000
• 10 Day Avg. Volume: 225,564
• 30 Day Avg. Volume: 211,582
• PEG Ratio: -1.11
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €43.41
• Price Target Upside: 11.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: €43.00 ▲(10.60%Upside)

Hugo Boss's strong financial performance and reasonable valuation are the primary strengths, offering a solid foundation for future growth. Technical analysis suggests a neutral trend without significant bullish or bearish momentum. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Cash Flow

Strong free cash flow generation of €0.5bn supported by good working capital control and capex discipline, representing around 20% of the stock's current market cap.

Operational Efficiency

Sourcing efficiencies and tight opex control are protecting margins.

Valuation

The stock trades at a valuation below its past 10-year average forward P/E, suggesting it may be undervalued.

Negative Factors

Consumer Sentiment

Hugo Boss is up against a more challenging external environment due to subdued consumer sentiment across key markets like the US and China in light of lingering uncertainty over tariffs.

Retail Environment

The group's retail productivity got even lower last year, with lower traffic leading brick-and-mortar sales productivity to decline by 8%.

Sales Performance

Analysts expect a slow start to the year for Hugo Boss, with a sales decline and reduced EBIT margin.

Hugo Boss Business Overview & Revenue Model

Company Description

Hugo Boss AG, together with its subsidiaries, develops, markets, and distributes clothes, shoes, and accessories for men and women worldwide. It offers business, casual, athleisure, and evening wear; shoes and accessories; and licensed products, including fragrances, eyewear, and watches, as well as children's fashion products. The company markets and sells its products under the BOSS and HUGO brand names through online stores, freestanding stores, shop-in-shops, and factory outlets. As of December 31, 2021, it operated 1,228 retail points of sale. The company was founded in 1924 and is headquartered in Metzingen, Germany.

How the Company Makes Money

Hugo Boss generates revenue through multiple streams, primarily from the sale of its high-quality clothing and accessories. The company's revenue model is centered around its retail operations, including company-owned stores and an expansive e-commerce platform. Wholesale distribution to third-party retailers also contributes significantly to its earnings. Additionally, Hugo Boss benefits from licensing agreements, particularly in the fragrance and eyewear segments, which allow it to leverage its brand across diverse product categories. Strategic partnerships with fashion influencers and brand ambassadors further enhance its market presence and drive sales. The company's focus on innovation, brand management, and global expansion plays a crucial role in sustaining its profitability.

Hugo Boss Financial Statement Overview

Summary

Hugo Boss demonstrates strong financial performance with consistent revenue growth and efficient cash flow management. While profitability margins show stability, there is potential for improvement. Leverage is well-managed, providing a solid foundation for future growth in the competitive apparel and luxury industry.

Income Statement

Hugo Boss has shown consistent revenue growth over the years, with a revenue increase from 2023 to 2024. The gross profit margin and net profit margin have slightly decreased, indicating stable profitability but with room for improvement. EBIT and EBITDA margins demonstrate healthy operational efficiency, which remains a strength.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting a balanced leverage position. Return on equity has shown a slight decline, suggesting a need for improved profitability relative to shareholder equity. The equity ratio shows a stable financial structure, highlighting financial stability.

Cash Flow

Hugo Boss has a strong operating cash flow to net income ratio, indicating efficient cash generation from operations. Although free cash flow growth has varied, the free cash flow to net income ratio remains robust, supporting its ability to reinvest and manage financial obligations.

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	636.67M	525.35M	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	210.62M	118.33M	188.74M	312.16M	145.99M
Total Debt	1.40B	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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BOSS, the sentiment is Positive. The current price of 38.88 is above the 20-day moving average (MA) of 38.87, above the 50-day MA of 38.23, and below the 200-day MA of 39.02, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 67.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:BOSS.

Hugo Boss Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOSS	71 Outperform	€2.68B	12.75	15.00%	3.10%	1.18%	-19.47%
Sector *	61 Neutral	AU$2.78B	25.79	5.01%	5.27%	2.63%	-29.95%
PMMAF		$3.96B	18.78	7.25%	2.59%	―	―
0OLD		€35.64B	34.72	19.28%	0.86%	―	―
0QXN		€7.04B	26.05	10.57%	―	―	―
GFG	48 Neutral	€69.00M	―	-34.04%	―	-11.28%	54.27%
YOU		€1.15B	―	-47.97%	―	―	―