Overall assessment of the Managing Board on the economic situation and expected development of the Group development of the Group

HUGO BOSS looks back on a successful 2018. The Group has achieved its targets set for fiscal year 2018. At the same time, it has made considerable progress in the implementation of its strategic priorities. Besides the successful realignment of the BOSS and HUGO brands, which became visible to customers for the first time with the launch of the Spring/Summer 2018 collection, the Group also successfully further developed its distribution strategy in 2018, especially in the online business. Moreover, HUGO BOSS has perceptibly driven forward the digitization of its business model. The consistent implementation of its strategic priorities and continued strict cost management had a positive impact on the Group’s course of business. Group Strategy

With a currency-adjusted increase of 4%, Group sales were within the original forecast range. In addition to the accelerating sales momentum in the Group’s own retail business, growth in the wholesale business also contributed to this development. EBITDA before special items remained stable in the fiscal year and was thus in line with the target set at the beginning of the year. Positive effects from the increase in sales and the strict cost management were offset by a decrease in the gross profit margin as well as investments in the digital transformation of the business model. At EUR 170 million, free cash flow was within the original forecast range. In light of its healthy balance sheet structure and its strong cash flow development that is expected to continue in the future, the Group continues to be in an exceedingly solid economic situation.Earnings Development Financial Position

HUGO BOSS is convinced that it will achieve sustainable profitable growth in 2019 and beyond. The current year will therefore focus entirely on implementing the Business Plan 2022. In this connection, HUGO BOSS will personalize its products even more and accelerate important business processes. In doing so, the Group increases brand desirability and sets an important milestone in the achievement of its mid-term targets. The Group aims at growing sales in the next four years by an average of 5% to 7% on a currency-adjusted basis, thereby outgrowing the relevant market segment. In addition, the operating margin (EBIT margin) is forecasted to increase to 15%. For 2019, HUGO BOSS expects to increase currency-adjusted Group sales at a mid-single-digit percentage rate. At the same time, operating profit (EBIT) is expected to grow at a high single-digit rate, and thus significantly faster than sales. Group Strategy, Business Plan 2022 Outlook

Metzingen, February 20, 2019

HUGO BOSS AG
The Managing Board

Mark Langer
Bernd Hake
Yves Müller
Ingo Wilts