Hugo Boss Ag · XETR:BOSS
Hugo Boss — Q2 2019 Earnings Presentation
28 slides from Hugo Boss's earnings presentation, Aug 1, 2019
Slide 1: Second Quarter 2019 Results Presentation
1 SECOND QUARTER 2019 RESULTS PRESENTATION SECOND QUARTER 2019 RESULTS PRESENTATION AUGUST 1, 2019
Slide 2: Yves Müller, Chief Financial Officer
2 SECOND QUARTER 2019 RESULTS PRESENTATION SECOND QUARTER 2019 RESULTS PRESENTATION YVES MÜLLER I CHIEF FINANCIAL OFFICER
Slide 3: Solid sales growth in the second quarter of 2019
3 SECOND QUARTER 2019 RESULTS PRESENTATION Group sales (in EUR million) 2%* 653 675 Q2 2018 Q2 2019 Solid sales growth in the second quarter of 2019 *Currency-adjusted
Slide 4: Further progress along strategic growth drivers
4 SECOND QUARTER 2019 RESULTS PRESENTATION +16%* +3% +8%* +3%* ONLINE RETAIL ASIA HUGO PRODUCTIVITY Further progress along strategic growth drivers *Currency-adjusted
Slide 5: Momentum in Asia/Pacific accelerates in the second quarter
5 SECOND QUARTER 2019 RESULTS PRESENTATION Asia/Pacific sales (in EUR million) Asia/Pacific Sales in China grow 7% currency- 8%* adjusted, driven by double-digit comp store sales increases 110 Strong momentum in Mainland 100 China continues in Q2 Japan and Southeast Asia record double-digit sales in
Slide 6: Europe with solid sales increases in the second quarter
6 SECOND QUARTER 2019 RESULTS PRESENTATION Europe sales (in EUR million) Europe 2%* Retail and wholesale with low- single-digit sales increases each 399 408 Revenues in France and the UK grow 6% and 2%, respectively Sales in Germany decline, reflecting challenging market environment Q2 2018 Q2 2019
Slide 7: Challenging market environment continues to weigh on performance
7 SECOND QUARTER 2019 RESULTS PRESENTATION Americas sales (in EUR million) Americas Market environment for the U.S. and Canada remains challenging (3)%* Both distribution channels in the U.S. negatively affected 137 139 Robust top-line momentum in Latin America continues Q2 2018 Q2 2019 Challenging
Slide 8: Retail comp store sales grow 2% in the second quarter
8 SECOND QUARTER 2019 RESULTS PRESENTATION Retail sales (in EUR million) 3%* 460 442 Q2 2018 Q2 2019 BOSS Store, Tokyo Retail comp store sales grow 2% in the second quarter *Currency-adjusted
Slide 9: Further roll-out of new BOSS store concept
9 SECOND QUARTER 2019 RESULTS PRESENTATION BOSS STORE BOSS STORE NEW BOSS MEXICO CITY AMSTERDAM STORE CONCEPT 52 BOSS STORES WITH NEW CONCEPT 8 RENOVATIONS IN Q2 2019 Further roll-out of new BOSS store concept
Slide 10: Expansion of HUGO stores with own store concept continues
10 SECOND QUARTER 2019 RESULTS PRESENTATION HUGO STORE HUGO STORE HUGO STORE TOKYO MOSCOW CONCEPT 26 HUGO STORES IN TOTAL 3 OPENINGS IN Q2 2019 Expansion of HUGO stores with own store concept continues
Slide 11: Wholesale business remains stable in the second quarter
11 SECOND QUARTER 2019 RESULTS PRESENTATION Wholesale sales (in EUR million) Wholesale Currency-adjusted sales in Europe 0%* and Asia/Pacific increase 1% and 14%, respectively 194 197 Online sales with marketplaces and department stores continue to grow at double-digit rates Q2 2018 Q2 2019 Wholesal
Slide 12: License business with ongoing strong momentum in Q2
12 SECOND QUARTER 2019 RESULTS PRESENTATION License sales License business Robust sales increases mainly driven by fragrance and eyewear businesses Momentum in fragrance business driven by new product launches +8% such as BOSS Bottled Infinite and HUGO Reversed Q2 2019 vs. Q2 2018* License business
Slide 13: Businesswear and casualwear drive growth at BOSS
13 SECOND QUARTER 2019 RESULTS PRESENTATION 2%* 568 587 Q2 2018 Q2 2019 Businesswear and casualwear drive growth at BOSS Sales in EUR million *Currency-adjusted
Slide 14: Personalization services further enhanced
14 SECOND QUARTER 2019 RESULTS PRESENTATION BOSS Made for Me “BOSS Made for Me” expands personalization offering for suits and shoes Personalization of key product groups by choosing preferred fabrics, linings and buttons Personalization services further enhanced
Slide 15: Mark Chao becomes the new face of BOSS in Asia/Pacific
15 SECOND QUARTER 2019 RESULTS PRESENTATION NEW BRAND AMBASSADOR Partnership to further increase desirability of BOSS in Asia/Pacific Successful launch of jointly developed "Luxury Travel" collection Mark Chao becomes the new face of BOSS in Asia/Pacific
Slide 16: HUGO with double-digit increases in casualwear
16 SECOND QUARTER 2019 RESULTS PRESENTATION 3%* 85 88 Q2 2018 Q2 2019 HUGO with double-digit increases in casualwear Sales in EUR million *Currency-adjusted
Slide 17: HUGO announces partnership with Liam Payne
17 SECOND QUARTER 2019 RESULTS PRESENTATION HUGO announces partnership with Liam Payne Exclusive capsule launch party with new brand ambassador at Berlin Fashion Week
Slide 18: EBIT returns to growth reflecting strong operating leverage
18 SECOND QUARTER 2019 RESULTS PRESENTATION EBIT returns to growth reflecting strong operating leverage (4) % (100) bp +2 % (90) bp +3 % (1) % Operating expenses Gross margin Operating expenses* EBIT* Net income* in % of sales* 66.0% EUR 369 MILLION 54.7% EUR 76 MILLION EUR 53 MILLION *Excluding IFR
Slide 19: Further progress in reducing inventory growth
19 SECOND QUARTER 2019 RESULTS PRESENTATION Inventory growth yoy (in % currency-adjusted) Inventories and TNWC 20% Further reduction in inventory 20 growth reflecting ongoing strict 16% focus on inventory management 16 14% TNWC up 6% currency-adjusted, 12 reflecting temporary increase in 9% trade re
Slide 20: Free cash flow development impacted by higher capital expenditure
20 SECOND QUARTER 2019 RESULTS PRESENTATION Capital expenditure Free cash flow* Free cash flow Capital expenditure increases to EUR 48 million, mainly due to ongoing store renovations as well as further IT investments +15 EUR million (7) EUR million Free cash flow decreases to EUR 72 million, reflec
Slide 21: HUGO BOSS reconfirms outlook for full year 2019
21 SECOND QUARTER 2019 RESULTS PRESENTATION HUGO BOSS reconfirms outlook for full year 2019 GROUP SALES * EBIT ** INCREASE INCREASE AT A MID-SINGLE-DIGIT AT A HIGH SINGLE-DIGIT PERCENTAGE RATE PERCENTAGE RATE *Currency-adjusted **Excluding IFRS 16 impact
Slide 22: E-concessions and store renovations to deliver important stimuli for H2 2019
22 SECOND QUARTER 2019 RESULTS PRESENTATION E-concessions and store renovations to deliver important stimuli for H2 2019 BOSS Store, Paris
Slide 23: BOSS Fashion Shows in Milan and Shanghai
23 SECOND QUARTER 2019 RESULTS PRESENTATION BOSS Fashion Shows in Milan and Shanghai
Slide 24: #SuitChallenge
24 SECOND QUARTER 2019 RESULTS PRESENTATION #SuitChallenge Show us what you can do in a suit Increasing community engagement with marketing campaign
Slide 25: Cooperation BOSS x Porsche well underway
25 SECOND QUARTER 2019 RESULTS PRESENTATION Launch of 2nd capsule collection for Fall/Winter 2019 Cooperation BOSS x Porsche well underway
Slide 26: HUGO BOSS reconfirms outlook for full year 2019
26 SECOND QUARTER 2019 RESULTS PRESENTATION HUGO BOSS reconfirms outlook for full year 2019 GROUP SALES * EBIT ** INCREASE INCREASE AT A MID-SINGLE-DIGIT AT A HIGH SINGLE-DIGIT PERCENTAGE RATE PERCENTAGE RATE *Currency-adjusted **Excluding IFRS 16 impact
Slide 27: Q&A
27 SECOND QUARTER 2019 RESULTS PRESENTATION Q&A
Slide 28: Forward-looking statements contain risks
28 SECOND QUARTER 2019 RESULTS PRESENTATION Forward-looking statements contain risks This document contains forward-looking statements that reflect management's current views with respect to future events. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “p