Hugo Boss Ag · XETR:BOSS

Hugo Boss — Q4 2024 Earnings Presentation

39 slides from Hugo Boss's earnings presentation, Mar 16, 2025

1. Slide 1: Full Year 2024 Results

   FULL YEAR 2024 RESULTS © 2022 HUGO BOSS

2. Slide 2: Agenda

   AGENDA STRATEGIC REVIEW 2024 FINANCIAL REVIEW 2024 OUTLOOK 2025 © 2022 HUGO BOSS

3. Slide 3: Strategic Review

   FULL YEAR 2024 2022 RESULTS PAGE 3 STRATEGIC REVIEW DANIEL GRIEDER, CEO © 2022 HUGO BOSS

4. Slide 4: We continued our growth journey despite mounting external headwinds

   FULL YEAR 2024 RESULTS PAGE 4 GROUP SALES WE CONTINUED OUR 4,307 EUR MILLION GROWTH JOURNEY EBIT DESPITE MOUNTING 361 EXTERNAL HEADWINDS EUR MILLION

5. Slide 5: Macroeconomic and geopolitical challenges weigh on global consumer sentiment

   FULL YEAR 2024 RESULTS PAGE 5 MACROECONOMIC AND GEOPOLITICAL CHALLENGES WEIGH ON GLOBAL CONSUMER SENTIMENT GEOPOLITICAL TENSIONS SECTOR SLOWDOWN ECONOMIC UNCERTAINTY Conflicts in Ukraine & Middle East Soft consumer sentiment Inflationary pressure Uncertainty around elections Promotional environment

6. Slide 6: Rigorous implementation of Claim 5 leads to record sales in 2024

   FULL YEAR 2024 RESULTS PAGE 6 RIGOROUS IMPLEMENTATION OF “CLAIM 5” LEADS TO RECORD SALES IN 2024 GROUP SALES €4.3 B 2024 €4.2 B 2023 €3.7 B 2022 €2.8 B 2021 €1.9 B 2020 SUCCESSFUL EXECUTION OF “CLAIM 5“ SINCE MID-2021 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

7. Slide 7: +11M followers since 2021

   FULL YEAR 2024 RESULTS PAGE 7 DRIVING BRAND REACH AND RELEVANCE WITH CLEAR FOCUS ON SOCIAL MEDIA +11M > 130B IMPRESSIONS ACROSS ALL CHANNELS FOLLOWERS SINCE 2021 ON SOCIAL > 3B ENGAGEMENTS MEDIA ON SOCIAL CHANNELS

8. Slide 8: We are operating from a position of strength

   FULL YEAR 2024 RESULTS PAGE 8 SIGNIFICANT INVESTMENTS IN BRAND, PRODUCT, DIGITAL, DISTRIBUTION, AND OPERATIONS WE ARE OPERATING FROM A POSITION OF STRENGTH

9. Slide 9: Our approach to handling external challenges in 2024

   FULL YEAR 2024 RESULTS PAGE 9 OUR APPROACH TO HANDLING EXTERNAL CHALLENGES IN 2024 FOCUS FOCUS prioritizing driving game-changing initiatives, efficiency gains along our to capitalize on our growth business to support opportunities. profitability.

10. Slide 10: Long-term strategic partnership with David Beckham announced

    FULL YEAR 2024 RESULTS PAGE 10 LONG-TERM STRATEGIC PARTNERSHIP DRIVING IMPACTFUL WITH DAVID BECKHAM ANNOUNCED INITIATIVES BOSS FALL/WINTER BOSS ONE BODYWEAR 2024 CAMPAIGN CAMPAIGN APPEARANCE AS BOSS SELECTED BY ~3 BILLION CAMPAIGN FACE BECKHAM IMPRESSIONS IN ONE MONTH

11. Slide 11: Global marketing activations foster engagement with BOSS and HUGO

    FULL YEAR 2024 RESULTS PAGE 11 GLOBAL MARKETING ACTIVATIONS DRIVING IMPACTFUL FOSTER ENGAGEMENT WITH BOSS AND HUGO INITIATIVES BOSS FALL/WINTER BOSS SPRING/SUMMER HUGO X FORMULA 1 2024 CAMPAIGN 2025 FASHION SHOW EVENT MIAMI x2 > 40 10 MORE ENGAGEMENTS MILLION MILLION VS. FALL/WINTER LIVE-STREAMING E

12. Slide 12: Fueling product momentum through the launch of HUGO Blue

    FULL YEAR 2024 RESULTS PAGE 12 FUELING PRODUCT MOMENTUM DRIVING IMPACTFUL THROUGH THE LAUNCH OF HUGO BLUE INITIATIVES HUGO BLUE SALES SHARE OF HUGO BLUE IN % OF TOTAL HUGO WE LAUNCHED HUGO BLUE EXPANDING OUR DENIMWEAR OFFERING HSD% IN 2024

13. Slide 13: Deepening customer engagement with HUGO BOSS XP

    FULL YEAR 2024 RESULTS PAGE 13 DEEPENING CUSTOMER ENGAGEMENT DRIVING IMPACTFUL WITH HUGO BOSS XP INITIATIVES Launch of new loyalty program in key markets such as Germany and the UK Expansion to further markets planned in 2025 GROWTH OF TOTAL MEMBER BASE MEMBER BASE +25% >10M VS. 2023 END OF 2024 © 2

14. Slide 14: Our approach to handling external challenges in 2024

    FULL YEAR 2024 RESULTS PAGE 14 OUR APPROACH TO HANDLING EXTERNAL CHALLENGES IN 2024 FOCUS FOCUS prioritizing driving game-changing initiatives, efficiency gains along our to capitalize on our growth business to support opportunities. profitability.

15. Slide 15: Unlocking efficiency gains across key business areas

    FULL YEAR 2024 RESULTS PAGE 15 UNLOCKING EFFICIENCY GAINS ENHANCING ACROSS KEY BUSINESS AREAS COST EFFICIENCY ECONOMIES VENDOR AIRFREIGHT B&M RETAIL MARKETING GENERAL OF SCALE PORTFOLIO SHARE EFFICIENCY EFFECTIVENESS ADMIN COSTS FY 2024 H1 2024 H2 2024 >200bp +6% +1% VS. H1 2023 VS. H2 2023 VS. FY 2

16. Slide 16: Strong organizational and operational setup

    FULL YEAR 2024 RESULTS PAGE 16 STRONG ORGANIZATIONAL AND OPERATIONAL SETUP FOUNDATION THE BACKBONE FOR FURTHER EFFICIENCY PROFITABLE GROWTH IMPROVEMENTS TARGETED

17. Slide 17: Financial Review

    FULL YEAR 2024 2022 RESULTS PAGE 17 FINANCIAL REVIEW YVES MÜLLER, CFO/COO © 2022 HUGO BOSS

18. Slide 18: Solid top-line improvements despite difficult market environment

    FULL YEAR 2024 RESULTS PAGE 18 SOLID TOP-LINE IMPROVEMENTS DESPITE DIFFICULT MARKET ENVIRONMENT GROUP SALES 4,307 +3% CURRENCY-ADJUSTED +3% IN GROUP CURRENCY EUR MILLION VS. FY 2023 EBIT 361 (12)% EUR MILLION VS. FY 2023

19. Slide 19: Sequential acceleration in revenue growth during the second half of 2024

    FULL YEAR 2024 RESULTS PAGE 19 SEQUENTIAL ACCELERATION IN REVENUE GROWTH DURING THE SECOND HALF OF 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 +13% +6% (1)% +1% +6% GROUP SALES* VS. 2023 CONSUMER SENTIMENT IMPACTED BY MACROECONOMIC AND GEOPOLITICAL UNCERTAINTIES *CURRENCY-ADJUSTED

20. Slide 20: Momentum in Q4 supported by successful activation of holiday season

    FULL YEAR 2024 RESULTS PAGE 20 MOMENTUM IN Q4 SUPPORTED BY SUCCESSFUL ACTIVATION OF HOLIDAY SEASON GROUP SALES* +6% VS. Q4 2023 OVERALL* BRANDS REGIONS CHANNELS BOSS +7% AMERICAS +13% B&M RETAIL +2% MENSWEAR BOSS +3% EMEA +6% B&M WHS +15% WOMENSWEAR *CURRENCY-ADJUSTED HUGO +6% ASIA/PACIFIC (2)% DIGI

21. Slide 21: Broad-based growth across all brands and wearing occasions

    FULL YEAR 2024 RESULTS PAGE 21 BROAD-BASED GROWTH ACROSS ALL BRANDS AND WEARING OCCASIONS +3% * +3% * +5% * *CURRENCY-ADJUSTED VS. FY 2023 VS. FY 2023 VS. FY 2023 BOSS BOSS HUGO MENSWEAR WOMENSWEAR

22. Slide 22: Growth trajectory in the Americas and EMEA continues while China weighs on Asia/Pacific

    FULL YEAR 2024 RESULTS PAGE 22 GROWTH TRAJECTORY IN THE AMERICAS AND EMEA CONTINUES WHILE CHINA WEIGHS ON BUSINESS DEVELOPMENT IN ASIA/PACIFIC AMERICAS EMEA ASIA/PACIFIC +8% * +3% * (2)% * VS. FY 2023 VS. FY 2023 VS. FY 2023 All markets contributed to growth, Growth driven by sales increases Develop

23. Slide 23: B&M wholesale and digital business with robust momentum in 2024

    FULL YEAR 2024 RESULTS PAGE 23 B&M WHOLESALE AND DIGITAL BUSINESS WITH ROBUST MOMENTUM IN 2024 B&M RETAIL B&M WHOLESALE DIGITAL +0% * +8% * +6% * VS. FY 2023 VS. FY 2023 VS. FY 2023 Muted consumer sentiment Robust demand for Sales increases at both in key markets such as BOSS and HUGO collections hu

24. Slide 24: Gross margin improves in 2024 due to sourcing efficiency gains

    FULL YEAR 2024 RESULTS PAGE 24 GROSS MARGIN IMPROVES IN 2024 DUE TO SOURCING EFFICIENCY GAINS GROSS PROFIT & MARGIN in EUR million Q1 623 61.4% +0 bp Channel/ Product regional Sourcing costs mix Q2 638 62.9% +50 bp efficiency FX Q3 619 60.2% (50) bp Rebates Q4 780 62.4% +90 bp 61.8% 30 bp 61.5% Q4 G

25. Slide 25: Growth in operating expenses successfully mitigated following cost efficiency measures

    FULL YEAR 2024 RESULTS PAGE 25 GROWTH IN OPERATING EXPENSES SUCCESSFULLY MITIGATED FOLLOWING IMPLEMENTATION OF COST EFFICIENCY MEASURES H1 H2 COST MEASURES underlying growth in operating expenses underlying growth in operating expenses FOCUS ON B&M RETAIL EFFICIENCY +1% +6% INCREASE IN MARKETING EFF

26. Slide 26: Sourcing efficiencies and disciplined cost management support bottom-line development

    FULL YEAR 2024 RESULTS PAGE 26 SOURCING EFFICIENCIES AND DISCIPLINED COST MANAGEMENT SUPPORT BOTTOM-LINE DEVELOPMENT IN 2024 Q4 2024 CHANGE FY 2024 CHANGE GROSS MARGIN 62.4% +90 BP 61.8% +30 BP 654 2,299 OPERATING EXPENSES EUR MILLION +8% EUR MILLION +6% OPERATING EXPENSES 52.3% +110 BP 53.4% +170 B

27. Slide 27: Working capital improvements driven by efficient management of receivables and payables

    FULL YEAR 2024 RESULTS PAGE 27 WORKING CAPITAL IMPROVEMENTS DRIVEN BY EFFICIENT MANAGEMENT OF RECEIVABLES AND PAYABLES ABSOLUTE AND RELATIVE DEVELOPMENT OF TNWC Improvement in trade net working capital mainly reflects efficient 870 management of trade receivables 791 and trade payables. TNWC IN % OF

28. Slide 28: Strong free cash flow development underlines cash-generative business model

    FULL YEAR 2024 RESULTS PAGE 28 STRONG FREE CASH FLOW DEVELOPMENT UNDERLINES CASH-GENERATIVE BUSINESS MODEL 2021–2024 KEY DRIVERS FREE CASH FLOW IN EUR MILLION 560 497 Strong working capital improvements as well as capital 166 expenditure discipline 96 2021 2022 2023 2024 © 2022 HUGO BOSS

29. Slide 29: Progressive dividend reflects confidence in ongoing robust cash flow generation

    FULL YEAR 2024 RESULTS PAGE 29 PROGRESSIVE DIVIDEND REFLECTS CONFIDENCE IN ONGOING ROBUST CASH FLOW GENERATION +4% 60% EUR DIVIDEND PAYOUT RATIO EUR 1.40 1.35 50% EUR 30‒50% 1.00 PAYOUT RATIO 45% 40% EUR 0.70 35% 36% 30% 33% 20% 2021 2022 2023 2024* DIVIDEND PER SHARE 2021 2022 2023 2024* *DIVIDEND

30. Slide 30: Outlook 2025

    FULL YEAR 2024 RESULTS PAGE 30 OUTLOOK 2025 © 2022 HUGO BOSS

31. Slide 31: We will put an even stronger focus on delivering profitability improvements

    FULL YEAR 2024 RESULTS PAGE 31 LOOKING AHEAD WE REMAIN VIGILANT WITH REGARDS TO ONGOING MACROECONOMIC AND GEOPOLITICAL UNCERTAINTIES WE WILL PUT AN EVEN STRONGER FOCUS ON DELIVERING PROFITABILITY IMPROVEMENTS © 2022 HUGO BOSS

32. Slide 32: Outlook

    FULL YEAR 2024 RESULTS PAGE 32 OUTLOOK SALES FY 2025 ASSUMPTIONS MACROECONOMIC BACKDROP TO REMAIN 4.2 TO 4.4 A KEY SOURCE OF UNCERTAINTY (2)% TO +2% MUTED CONSUMER SENTIMENT TO WEIGH EUR BILLION ON BUSINESS PERFORMANCE 2025E FOCUS ON BRAND AND PRODUCT INITIATIVES TO INSPIRE CONSUMERS EBIT ONGOING IN

33. Slide 33: Sales outlook by region

    FULL YEAR 2024 RESULTS PAGE 33 SALES OUTLOOK BY REGION LOW-SINGLE-DIGIT BROADLY MODERATE INCREASE STABLE DECLINE VS. FY 2024 VS. FY 2024 VS. FY 2024 24/7 lifestyle positioning offers additional Soft consumer sentiment in Business environment and consumer business opportunities in the U.S. several Eu

34. Slide 34: Key brand and product initiatives to inspire consumers in 2025

    FULL YEAR 2024 RESULTS PAGE 34 KEY BRAND AND PRODUCT INITIATIVES TO INSPIRE CONSUMERS IN 2025 LOWER IMPLEMENT MAINTAIN AIRFREIGHT DIGITAL COST BRAND SHARE HERO TWIN PUSH PRODUCT DISCIPLINE LOYALTY CAMPAIGNS PRODUCTS FOOTWEAR INNOVATION PROGRAM

35. Slide 35: Important profitability levers to deliver robust improvements in EBIT

    FULL YEAR 2024 RESULTS PAGE 35 IMPORTANT PROFITABILITY LEVERS TO DELIVER ROBUST IMPROVEMENTS IN EBIT GROSS MARGIN DRIVING EXPANSION DUE TO EFFICIENCY GAINS FURTHER SOURCING ALONG OUR BUSINESS EFFICIENCIES LEVERAGING OUR OPERATIONAL AND ORGANIZATIONAL PLATFORM

36. Slide 36: Profitability improvements through gross margin expansion and disciplined cost management

    FULL YEAR 2024 RESULTS PAGE 36 PROFITABILITY IMPROVEMENTS THROUGH GROSS MARGIN EXPANSION AND DISCIPLINED COST MANAGEMENT GROSS MARGIN EXPANSION Leveraging COGS efficiencies Optimization of freight modes Normalization in material and energy prices +60 BP TO 160 BP 9.0–10.0% EBIT MARGIN COST EFFICIENC

37. Slide 37: Our commitment: driving sustainable, profitable growth

    FULL YEAR 2024 RESULTS PAGE 37 OUR COMMITMENT DRIVING SUSTAINABLE, PROFITABLE GROWTH. DRIVING LONG-TERM SHAREHOLDER VALUE. © 2022 HUGO BOSS

38. Slide 38: Questions: press * followed by 1

    FULL YEAR 2024 RESULTS PAGE 38 IF YOU’D LIKE TO ASK A QUESTION, PRESS * FOLLOWED BY 1 © 2022 HUGO BOSS

39. Slide 39: Forward-looking statements contain risks

    FULL YEAR 2024 RESULTS PAGE 39 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”, “project”, “sho

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