Hugo Boss Ag · XETR:BOSS
Hugo Boss — FY2020 Earnings Presentation
31 slides from Hugo Boss's earnings presentation, Mar 11, 2021
Slide 1: Full Year 2020 Results Presentation
FULL YEAR 2020 RESULTS PRESENTATION MARCH 11, 2021
Slide 2: Yves Müller, Spokesperson of the Managing Board
YVES MÜLLER SPOKESPERSON OF THE MANAGING BOARD
Slide 3: HUGO BOSS successfully overcomes challenges associated with the pandemic
3 FULL YEAR 2020 RESULTS PRESENTATION HUGO BOSS successfully overcomes challenges associated with the pandemic
Slide 4: Key priorities while managing the pandemic
4 FULL YEAR 2020 RESULTS PRESENTATION Key priorities while managing the pandemic JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 MANAGING THE PANDEMIC Executing measures to maintain financial stability and flexibility Gradual recovery of bu
Slide 5: Successful execution of comprehensive measures to protect financial stability
5 FULL YEAR 2020 RESULTS PRESENTATION Successful execution of comprehensive measures to protect financial stability Strict cost Postponement management of investments ~ EUR 200 million* ~ EUR 70 million • Significant payroll as well as rental savings achieved • Postponement of store openings and ren
Slide 6: Strong free cash flow generation in 2020
6 FULL YEAR 2020 RESULTS PRESENTATION Strong free cash flow generation in 2020 FY 2020 Successful execution of comprehensive measures safeguards free cash flow EUR Revolving syndicated loan of EUR 633 million 164 only utilized in the amount of EUR 105 million Additional credit commitments totaling E
Slide 7: ~20% of global store network closed on average in fiscal year 2020
7 FULL YEAR 2020 RESULTS PRESENTATION ~20% of global store network closed on average in fiscal year 2020 100% 75% 50% STORE OPENING RATE * 25% Q1 2020 Q2 2020 Q3 2020 Q4 2020 0% ~85% ~50% ~95% ~85% * NUMBER OF OWN RETAIL POINTS OF SALE NOT AFFECTED BY TEMPORARY CLOSINGS DIVIDED BY TOTAL NUMBER OF OW
Slide 8: Third consecutive year with strong double-digit online sales growth
8 FULL YEAR 2020 RESULTS PRESENTATION + 49 % * Own online sales of EUR 221 million achieved in 2020 Share of own online business more than doubles to 11% of Group sales Successful expansion of hugoboss.com to 32 additional markets Third consecutive year with strong double-digit online sales growth *
Slide 9: Renewed lockdowns in Europe weigh on sales towards year end
9 FULL YEAR 2020 RESULTS PRESENTATION EUROPE SALES ** Major markets, including the UK, Germany, and France with low to mid-double-digit sales declines (31)% * Markets in southern Europe particularly hit by lower tourist flows in light of international travel restrictions On average, around 25% of ow
Slide 10: Gradual business recovery in the Americas continues
10 FULL YEAR 2020 RESULTS PRESENTATION AMERICAS SALES Business in the U.S. and Canada severely impacted by lockdown-related store closures and lower tourist (42)% * flows Sequential business recovery in the U.S. continues in Q4, supported by robust local demand Latin America returns to growth in the
Slide 11: Recovery in Asia/Pacific driven by double-digit sales growth in mainland China
11 FULL YEAR 2020 RESULTS PRESENTATION ASIA/PACIFIC SALES Mainland China continues its double-digit growth trajectory with sales up 24% in Q4 (20)% * Markets such as Australia and Japan record sequential improvements in the fourth quarter Lower tourist flows continue to negatively impact business in
Slide 12: Casualwear benefits from ongoing trend towards casualization
12 FULL YEAR 2020 RESULTS PRESENTATION Casualwear benefits from ongoing trend towards casualization (32) % HUGO BOSS (27) % * CURRENCY-ADJUSTED
Slide 13: Unique product assortment across all wearing occasions
13 FULL YEAR 2020 RESULTS PRESENTATION Unique product assortment across all wearing occasions
Slide 14: HUGO BOSS records operating profit in Q4
14 FULL YEAR 2020 RESULTS PRESENTATION HUGO BOSS records operating profit in Q4 GROUP SALES IN Q4 (26)% * EBIT IN Q4 EUR 13 MILLION * CURRENCY-ADJUSTED
Slide 15: Execution of comprehensive cost-saving measures limits EBIT decline in 2020
15 FULL YEAR 2020 RESULTS PRESENTATION Execution of comprehensive cost-saving measures limits EBIT decline in 2020 Group sales Gross margin Operating expenses ** EBIT ** Net income ** EUR EUR EUR EUR 1,946 61.0 1,313 (126) (131) MILLION % MILLION MILLION MILLION (31)%* (400) bp (14)% <(100)% <(100)%
Slide 16: Pushing ahead with execution of strategic initiatives
16 FULL YEAR 2020 RESULTS PRESENTATION Pushing ahead with execution of strategic initiatives EXPLOIT CREATE GLOBAL SALES BRAND HEAT & OPPORTUNITIES PRODUCT DESIRE
Slide 17: Exploiting the full potential of mainland China
17 FULL YEAR 2020 RESULTS PRESENTATION Exploiting the full potential of mainland China Momentum continues into 2021, supported by strong activation around Chinese New Year Local brand ambassadors drive awareness among younger customers Leveraging full potential through space expansion and strong foc
Slide 18: Strong double-digit growth trajectory of online business to continue
18 FULL YEAR 2020 RESULTS PRESENTATION Strong double-digit growth trajectory of online business to continue Own online sales well on track to break EUR 400 million mark in 2022 Global expansion of hugoboss.com in full swing Strong focus on further elevating the shopping experience
Slide 19: Driving brand desirability
19 FULL YEAR 2020 RESULTS PRESENTATION Driving brand desirability
Slide 20: Community engagement on social media further accelerates
20 FULL YEAR 2020 RESULTS PRESENTATION Community engagement on social media further accelerates AVERAGE NUMBER OF INSTAGRAM LIKES PER POST FOLLOWERS MORE THAN GROW 2X double double-dgi double-digit 2020 VS. 2019 2020 VS. 2019
Slide 21: Chris Hemsworth is the global face of BOSS
21 FULL YEAR 2020 RESULTS PRESENTATION Chris Hemsworth is the global face of BOSS
Slide 22: BOSS x AJBXNG gains further momentum
22 FULL YEAR 2020 RESULTS PRESENTATION BOSS x AJBXNG gains further momentum FATHER‘S DAY CAMPAIGN
Slide 23: Successful launch of exclusive BOSS x NBA capsule
23 FULL YEAR 2020 RESULTS PRESENTATION Successful launch of exclusive BOSS x NBA capsule
Slide 24: Creating excitement with the launch of
24 FULL YEAR 2020 RESULTS PRESENTATION CREATING EXCITEMENT WITH THE LAUNCH OF
Slide 25: HUGO Louder makes young musicians' voice heard
25 FULL YEAR 2020 RESULTS PRESENTATION HUGO Louder makes young musicians’ voice heard
Slide 26: HUGO x Liam Payne supports Cotton made in Africa
26 FULL YEAR 2020 RESULTS PRESENTATION HUGO x Liam Payne supports “Cotton made in Africa”
Slide 27: Share of responsible styles to almost double in 2021
27 FULL YEAR 2020 RESULTS PRESENTATION 2020 2021 ~ 15% ~ 25% Share of RESPONSIBLE styles to almost double in 2021
Slide 28: HUGO BOSS included in the DJSI World for the fourth consecutive year
28 FULL YEAR 2020 RESULTS PRESENTATION HUGO BOSS included in the DJSI World for the fourth consecutive year
Slide 29: Outlook for full year 2021
29 FULL YEAR 2020 RESULTS PRESENTATION Outlook for full year 2021
Slide 30: Oliver Timm started on January 1, 2021 as new CSO
30 FULL YEAR 2020 RESULTS PRESENTATION OLIVER TIMM STARTED ON JANUARY 1, 2021 AS NEW CSO
Slide 31: Q&A
31 FULL YEAR 2020 RESULTS PRESENTATION Q&A