Hugo Boss Ag · XETR:BOSS

Hugo Boss — Q3 2022 Earnings Presentation

25 slides from Hugo Boss's earnings presentation, Nov 3, 2022

Slide 4: HUGO BOSS with record quarterly sales in Q3
THIRD QUARTER 2022 RESULTS PAGE 4 HUGO BOSS WITH RECORD QUARTERLY SALES IN Q3 GROUP SALES 933 +18 %* EUR MILLION VS Q3 2021 EBIT 92 +8 % EUR MILLION VS Q3 2021 © 2022 HUGO BOSS *CURRENCY-ADJUSTED
Slide 5: Strong top-line momentum continues in third quarter
THIRD QUARTER 2022 RESULTS PAGE 5 STRONG TOP-LINE MOMENTUM CONTINUES IN THIRD QUARTER GROUP SALES DEVELOPMENT VS 2019 LEVELS (CURRENCY-ADJUSTED) 29% 27% 17% 12% 7% Q3 Q4 Q1 Q2 Q3 2021 2021 2022 2022 2022 © 2022 HUGO BOSS
Slide 6: Star-studded Fall/Winter 2022 campaign builds on successful branding refresh
THIRD QUARTER 2022 RESULTS PAGE 6 STAR-STUDDED FALL/WINTER 2022 CAMPAIGN BUILDS ON SUCCESSFUL BRANDING REFRESH © 2022 HUGO BOSS
Slide 7: Exciting marketing and product initiatives spur brand heat in Q3
THIRD QUARTER 2022 RESULTS PAGE 7 EXCITING MARKETING AND PRODUCT INITIATIVES SPUR BRAND HEAT IN Q3 FALL/WINTER 2022 CAMPAIGN BOSS X ALICA BOSS FASHION SHOW BOSS X MATTEO © 2022 HUGO BOSS
Slide 8: Momentum for BOSS womenswear strongly accelerates
THIRD QUARTER 2022 RESULTS PAGE 8 MOMENTUM FOR BOSS WOMENSWEAR STRONGLY ACCELERATES +20%* +13%* VS Q3 2021 VS Q3 2021 BOSS BOSS *CURRENCY-ADJUSTED MENSWEAR WOMENSWEAR © 2022 HUGO BOSS
Slide 9: Fall/Winter 2022 campaign fuels brand relevance for HUGO
THIRD QUARTER 2022 RESULTS PAGE 9 FALL/WINTER 2022 CAMPAIGN FUELS BRAND RELEVANCE FOR HUGO © 2022 HUGO BOSS
Slide 10: Marketing and product initiatives drive engagement in Q3
THIRD QUARTER 2022 RESULTS PAGE 10 MARKETING AND PRODUCT INITIATIVES DRIVE ENGAGEMENT IN Q3 FALL/WINTER 2022 CAMPAIGN HUGO X REPLAY HUGO FASHION SHOW HUGO X IMAGINARY ONES © 2022 HUGO BOSS
Slide 11: HUGO successfully continues its double-digit growth trajectory
THIRD QUARTER 2022 RESULTS PAGE 11 HUGO SUCCESSFULLY CONTINUES ITS DOUBLE-DIGIT GROWTH TRAJECTORY +13% * VS Q3 2021 HUGO © 2022 HUGO BOSS *CURRENCY-ADJUSTED
Slide 12: Momentum in brick-and-mortar retail further accelerates
THIRD QUARTER 2022 RESULTS PAGE 12 MOMENTUM IN BRICK-AND-MORTAR RETAIL FURTHER ACCELERATES RETAIL WHOLESALE DIGITAL +18%* vs Q3 2021 +18%* vs Q3 2021 +20%* vs Q3 2021 Growth accelerates to Strong demand from Double-digit growth of +25% vs 2019 levels, wholesale partners hugoboss.com and with momentu
Slide 13: Robust consumer demand drives growth in Europe
THIRD QUARTER 2022 RESULTS PAGE 13 ROBUST CONSUMER DEMAND DRIVES GROWTH IN EUROPE EUROPE SALES INCL. MIDDLE EAST AND AFRICA Growth in brick-and-mortar retail further accelerates compared to 2019 levels +17% * Delivery shift effects limit growth in brick-and-mortar wholesale in Q3 vs Q3 2021 Robust i
Slide 14: The Americas enjoy ongoing strong momentum in Q3
THIRD QUARTER 2022 RESULTS PAGE 14 THE AMERICAS ENJOY ONGOING STRONG MOMENTUM IN Q3 AMERICAS SALES Sequential revenue improvements in brick-and- mortar retail on a 3-year-stack basis +18% * The U.S. (+12%) and Canada (+17%) with double- digit sales increases in the third quarter vs Q3 2021 Latin Ame
Slide 15: Revenues in Asia/Pacific return to double-digit sales increases
THIRD QUARTER 2022 RESULTS PAGE 15 REVENUES IN ASIA/PACIFIC RETURN TO DOUBLE-DIGIT SALES INCREASES ASIA/PACIFIC SALES Double-digit sales improvements in Q3, driven by significant uptick in consumer sentiment +33% * Business in South East Asia & Pacific recovers strongly, leading to double-digit sale
Slide 16: Strong full price sell-through supports gross margin development
THIRD QUARTER 2022 RESULTS PAGE 16 STRONG FULL PRICE SELL-THROUGH SUPPORTS GROSS MARGIN DEVELOPMENT Sourcing & Channel Regional Q3 2021 Full price freight cost FX mix mix Q3 2022 61.7% 60.8% (90) bp © 2022 HUGO BOSS
Slide 17: Robust bottom-line improvements despite ongoing investments
THIRD QUARTER 2022 RESULTS PAGE 17 ROBUST BOTTOM-LINE IMPROVEMENTS DESPITE ONGOING INVESTMENTS Q3 2022 CHANGE GROSS MARGIN 60.8% (90) BP STRONG FULL-PRICE SELL-THROUGH OFFSET BY EXTERNAL FACTORS OPERATING EXPENSES (IN % OF SALES) 50.9% INCREASE IN OPEX +50 BP EBIT 92 +8% ROBUST GROWTH SPURRED BY STR
Slide 18: Composition of inventories remains very healthy and of high quality
THIRD QUARTER 2022 RESULTS PAGE 18 COMPOSITION OF INVENTORIES REMAINS VERY HEALTHY AND OF HIGH QUALITY INVENTORY DEVELOPMENT IN EUR MILLION 910 Increase in inventories to support strong +41%* top-line momentum and robust order intake for upcoming seasons 588 Earlier receipt of core merchandise to en
Slide 19: Trade net working capital weighs on free cash flow development
THIRD QUARTER 2022 RESULTS PAGE 19 TRADE NET WORKING CAPITAL WEIGHS ON FREE CASH FLOW DEVELOPMENT SEP 30, 2022 CHANGE INVENTORIES 910 INCREASE IN INVENTORIES TO SUPPORT FUTURE TOP-LINE GROWTH EUR MILLION +41%* TNWC (AS A % OF SALES) IMPROVEMENTS DRIVEN BY STRONG INCREASE IN SALES 14.0% (660) BP CAPI
Slide 20: HUGO BOSS raises outlook for full year 2022
THIRD QUARTER 2022 RESULTS PAGE 20 HUGO BOSS RAISES OUTLOOK FOR FULL YEAR 2022 OUTLOOK © 2022 HUGO BOSS
Slide 21: Sales outlook for full year 2022
THIRD QUARTER 2022 RESULTS PAGE 21 SALES OUTLOOK FOR FULL 25% TO 30% YEAR 2022 Increase in sales outlook following strong top-line performance in Q3 Broad-based growth expected across all brands, channels, and regions 2.8 3.5 3.6 EUR BILLION EUR BILLION 2021 2022E © 2022 HUGO BOSS
Slide 22: EBIT outlook for full year 2022
THIRD QUARTER 2022 RESULTS PAGE 22 EBIT OUTLOOK FOR FULL 35% TO 45% YEAR 2022 Increase in EBIT outlook despite ongoing investments Persisting high levels of macroeconomic uncertainties taken into account 228 310 330 EUR MILLION EUR MILLION 2021 2022E © 2022 HUGO BOSS
Slide 23: 2022 a record year for HUGO BOSS
THIRD QUARTER 2022 RESULTS PAGE 23 2022 A RECORD YEAR FOR HUGO BOSS Broad-based top-line momentum Robust foundation laid to continue success story for BOSS and HUGO 2022 to be an important milestone in achieving 2025 financial ambition © 2022 HUGO BOSS

Hugo Boss — Q3 2022 Earnings Presentation on 6ix

Hugo Boss — Q3 2022 Earnings Presentation

Slide 1: © 2022 HUGO BOSS

Slide 2: Third Quarter 2022 Results

Slide 3: Yves Müller, CFO/COO

Slide 4: HUGO BOSS with record quarterly sales in Q3

Slide 5: Strong top-line momentum continues in third quarter

Slide 6: Star-studded Fall/Winter 2022 campaign builds on successful branding refresh

Slide 7: Exciting marketing and product initiatives spur brand heat in Q3

Slide 8: Momentum for BOSS womenswear strongly accelerates

Slide 9: Fall/Winter 2022 campaign fuels brand relevance for HUGO

Slide 10: Marketing and product initiatives drive engagement in Q3

Slide 11: HUGO successfully continues its double-digit growth trajectory

Slide 12: Momentum in brick-and-mortar retail further accelerates

Slide 13: Robust consumer demand drives growth in Europe

Slide 14: The Americas enjoy ongoing strong momentum in Q3

Slide 15: Revenues in Asia/Pacific return to double-digit sales increases

Slide 16: Strong full price sell-through supports gross margin development

Slide 17: Robust bottom-line improvements despite ongoing investments

Slide 18: Composition of inventories remains very healthy and of high quality

Slide 19: Trade net working capital weighs on free cash flow development

Slide 20: HUGO BOSS raises outlook for full year 2022

Slide 21: Sales outlook for full year 2022

Slide 22: EBIT outlook for full year 2022

Slide 23: 2022 a record year for HUGO BOSS

Slide 24: Q&A

Slide 25: © 2022 HUGO BOSS