Hugo Boss AG · XETR:BOSS
Hugo Boss — Investor Day (November 2011)
19 slides from Hugo Boss's investor day presentation, Nov 8, 2011
Slide 1: HUGO BOSS
HUGO BOS S$
Slide 2: Europe Strategy
Europe Strategy Knut Brokelmann, Regional Director Europe, Middle East, Africa & India November 8, 2011 HUGO BOSS Investor Day 2011 // Europe Strategy HUGO BOSS © November 8, 2011 2 / 19
Slide 3: About me
About me ■ Born 21 January 1968 in Stade, Germany ■ Education ■ 1989-1991 Business Academy Bielefeld, Germany ■ Professional background ■ 1991-1992 Sales Manager at Doerge Agency, London Sales Representative for HUGO BOSS UK ■ 1992-1994 Sales Agent for Joop! Menswear, Germany KNUT BROKELMANN ■ 1994-
Slide 4: Europe – The core region of HUGO BOSS
EUROPE – The core region of HUGO BOSS Sales by Region FY 2010 ■ Biggest and most profitable region within 3% // Royalties the Group 62% // Europe 13% // Asia/Pacific ■ Unrivalled wholesale partnerships ■ Leading market positions in Western Europe 22% // Americas ■ Strong recovery from crisis lows Sa
Slide 5: HUGO BOSS in Europe today
HUGO BOSS in Europe today ~7.900 ~84 ~4.700 EMPLOYEES COUNTRIES POINTS OF SALE 292 ~4.400 ~2.800 RETAIL WHOLESALE WHOLESALE PARTNERS POINTS OF SALE POINTS OF SALE HUGO BOSS ©
Slide 6: Europe - Key industry dynamics
EUROPE - Key industry dynamics ■ Competitive market environment ■ Wholesale consolidation ■ New cooperation models between brands and wholesale partners ■ Growing importance of own retail ■ Emergence of new growth markets HUGO BOSS Investor Day 2011 // Europe Strategy HUGO BOSS © November 8, 2011 6
Slide 7: Clear growth strategy in place
Clear growth strategy in place HUGO BOSS Investor Day 2011 // Europe Strategy HUGO BOSS © November 8, 2011 7 / 19
Slide 8: Dominant market position in menswear with growth opportunities in other categories
Dominant market position in menswear clothing with ample growth opportunities in other categories WOMENSWEAR SHOES & BOSS SELECTION ACCESSORIES HUGO BOSS Investor Day 2011 // Europe Strategy HUGO BOSS © November 8, 2011 8 / 19
Slide 9: Wholesale – Further develop successful partnerships
WHOLESALE – Further develop successful partnerships ■ Strong portfolio of leading wholesale partners ■ Attractive brand proposition ■ Superior sell-throughs ■ Reliable delivery and replenishment performance P&C KAERNTNERSTRASSE, VIENNA Leveraging brand strength key to gaining space in wholesale HUGO
Slide 10: Retail – Strong medium-term growth potential in retail
RETAIL – Strong medium-term growth potential in retail ■ Targeted additions in Western Europe ■ Accelerated retail rollout in Eastern Europe Sales split by channel // Europe Retail 21% 25% 24% 29% 35% 50% Wholesale 79% 76% 75% 71% 65% 50% … 2006 2007 2008 2009 2010 2011e 2015e Retail to account for
Slide 11: Retail – Active management of wholesale space
RETAIL – Active management of wholesale space an increasingly important distribution concept ■ Potential levers for productivity improvements: ■ Comprehensive control of merchandise flow and assortment ■ Targeted bestseller management ■ Superior customer service through dedicated staff ■ Attractive
Slide 12: Retail – Renovations offer potential for productivity gains
RETAIL – Renovations offer potential for productivity gains ■ Flexible space allocation due to modular brand concept ■ Upgrade of store furniture concepts ■ Optimized consumer flow HUGO BOSS STORE, MILAN HUGO BOSS Investor Day 2011 // Europe Strategy HUGO BOSS © November 8, 2011 12 / 19
Slide 13: Project D.R.I.V.E. – Implementation in full swing (I)
PROJECT D.R.I.V.E. – Implementation in full swing (I) Example: 4-season cycle Current delivery ■ Cycle shift fully curve reflected in retail P A S ■ Fresher merchandise T DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV offering 2 main collections and 2 much smaller pre-collections ■ Better adjustmen
Slide 14: Project D.R.I.V.E. – Implementation in full swing (II)
PROJECT D.R.I.V.E. – Implementation in full swing (II) Example: 4-season cycle (cont.) D J F M A M J J A S O N D SPRING Spring 1 Spring 2 Spring 3 Order: ~ Jul / Aug Summer 2 Summer 1 Summer 3 SUMMER Order: ~ Oct / Nov spring / summer core themes FALL Fall 1 Fall 2 Fall 3 Order: ~ Jan / Feb WINTER W
Slide 15: Project D.R.I.V.E. – Implementation in full swing (III)
PROJECT D.R.I.V.E. – Implementation in full swing (III) Example: Core range Introduced in all markets… …with only limited exchange quotas max. 20% non-core 80% core range Consistent brand presentation 60% less retail complexity across all markets HUGO BOSS Investor Day 2011 // Europe Strategy HUGO B
Slide 16: Capitalizing on strong brand momentum in key markets
Capitalizing on strong brand momentum in key markets Germany ■ “Must have” brand in Menswear Clothing ■ Own retail opportunities in metropolitan areas ■ New cooperation models with wholesale partners UK ■ Strong brand perception based on perfect fit, high quality and superior value proposition ■ Gro
Slide 17: Expanding brand presence in fast-growing markets
Expanding brand presence in fast-growing markets Eastern Europe ■ Take full control of distribution step-by-step ■ Extend own retail presence ■ Continuously invest into brand strength HUGO BOSS Investor Day 2011 // Europe Strategy HUGO BOSS © November 8, 2011 17 / 19
Slide 18: Summary
SUMMARY ■ Region Europe set for continued growth ■ Good opportunities to leverage brand strength across portfolio of wholesale partners ■ Improving retail sophistication opens up new growth opportunities HUGO BOSS Investor Day 2011 // Europe Strategy HUGO BOSS © November 8, 2011 18 / 19
Slide 19: HUGO BOSS
HUGO BOS S$