Hugo Boss Ag · XETR:BOSS
Hugo Boss — FY2019 Earnings Presentation
26 slides from Hugo Boss's earnings presentation, Mar 5, 2020
Slide 1: Full Year 2019 Results Presentation
1 FY 2019 RESULTS PRESENTATION FULL YEAR 2019 RESULTS PRESENTATION MARCH 5, 2020
Slide 2: Mark Langer, Chief Executive Officer
2 FY 2019 RESULTS PRESENTATION MARK LANGER CHIEF EXECUTIVE OFFICER
Slide 3: HUGO BOSS with strong sales and earnings growth in Q4
3 FY 2019 RESULTS PRESENTATION Group sales* EBIT** +4% +9% EUR 825 MILLION EUR 122 MILLION HUGO BOSS with strong sales and earnings growth in Q4 * Currency-adjusted **Excluding IFRS 16 impact
Slide 4: Adjusted full year 2019 targets achieved
4 FY 2019 RESULTS PRESENTATION Adjusted full year 2019 targets achieved +2 CURRENCY-ADJUSTED % GROUP SALES 2019 EUR 2.9 BILLION
Slide 5: Own online business generates sales of EUR 151 million in FY 2019
5 FY 2019 RESULTS PRESENTATION ONLINE + 35 %* New online partnerships contribute strongly to sales growth in 2019 Successful expansion of own online store hugoboss.com to Scandinavia and Ireland Own online business generates sales of EUR 151 million in FY 2019 * Currency-adjusted
Slide 6: Increase in retail productivity supported by rollout of store concept
6 FY 2019 RESULTS PRESENTATION RETAIL PRODUCTIVITY + 4 %** Further optimization of global store network through renovations and new openings New store concept implemented in around 100 BOSS stores Increase in retail productivity supported by rollout of store concept
Slide 7: Momentum at HUGO accelerates, driven by casualwear
7 FY 2019 RESULTS PRESENTATION HUGO + 5 %** Casualwear with strong double- digit sales increases in 2019 Logo-inspired products very well received by HUGO customers Momentum at HUGO accelerates, driven by casualwear * Currency-adjusted
Slide 8: Collaboration with Liam Payne successfully initiated in 2019
8 FY 2019 RESULTS PRESENTATION Collaboration with Liam Payne successfully initiated in 2019 HUGO X LIAM PAYNE CAPSULE COLLECTION HUGO X LIAM PAYNE BERLIN EVENT
Slide 9: Above-average growth in Asia/Pacific reflects the region's high potential
9 FY 2019 RESULTS PRESENTATION ASIA/ PACIFIC + 5 %** Mainland China with double-digit growth on a comparable store basis Hong Kong impacted by political unrest and demonstrations Japan, South Korea, and Singapore with robust growth in 2019 Above-average growth in Asia/Pacific reflects the region’s h
Slide 10: Li Yifeng named new BOSS Brand Ambassador
10 FY 2019 RESULTS PRESENTATION Li Yifeng named new BOSS Brand Ambassador
Slide 11: Strong momentum in the UK drives sales growth in Europe
11 FY 2019 RESULTS PRESENTATION Strong momentum in the UK drives sales growth in Europe Americas sales Europe sales** Asia/Pacific sales ( 7)% * + 4% * + 5% * • Sales increase in the UK and France • Challenging market environment in Germany continues in 2019 * Currency-adjusted **Including Middle Ea
Slide 12: Americas impacted by challenging market environment in North America
12 FY 2019 RESULTS PRESENTATION Americas impacted by challenging market environment in North America Americas sales Europe sales Asia/Pacific sales ( 7)% * + 4% * + 5% * • Sales in North America decline, reflecting challenging environment in U.S. wholesale • Brazil and Mexico with robust sales * Cur
Slide 13: Yves Müller, Chief Financial Officer
13 FY 2019 RESULTS PRESENTATION YVES MÜLLER CHIEF FINANCIAL OFFICER
Slide 14: EBIT development impacted by lower gross margin and increase in operating expenses
14 FY 2019 RESULTS PRESENTATION EBIT development impacted by lower gross margin and increase in operating expenses (4) % (20) bp +4 % +70 bp (4) % (10) % Operating expenses Gross margin Operating expenses* EBIT* Net income* in % of sales* 65.0 % EUR 1,543 MILLION 53.5% EUR 333 MILLION EUR 212 MILLIO
Slide 15: Normalization of inventory growth over the course of 2019
15 FY 2019 RESULTS PRESENTATION Inventory growth YOY (in % currency-adjusted) Ongoing strict focus on inventory management leads to 14% normalization of inventory growth Trade net working capital declines 9% by 3% 3% 1% 0% Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Normalization of inventory growth ove
Slide 16: Free cash flow with strong improvement in 2019
16 FY 2019 RESULTS PRESENTATION Capital expenditure Free cash flow* Jan.–Dec. Jan.–Dec. Higher capital expenditure mainly driven by further investments in own retail +24% + 22% Free cash flow up 22% due to improvements in trade net working capital YOY YOY EUR 192 MILLION EUR 207 MILLION Free cash fl
Slide 17: Increase in dividend reflects strong improvement in free cash flow
17 FY 2019 RESULTS PRESENTATION Increase in dividend reflects strong improvement in free cash flow Dividend per share (in EUR) Dividend proposal of EUR 2.75 per share (+2% versus prior year) 2.75* 2.70 2.65 Total dividend payment of 2.60 EUR 190 million (2018: EUR 186 million) Payout ratio of 93% (2
Slide 18: Mark Langer, Chief Executive Officer
18 FY 2019 RESULTS PRESENTATION MARK LANGER CHIEF EXECUTIVE OFFICER
Slide 19: Focus remains on further executing strategic initiatives
19 FY 2019 RESULTS PRESENTATION Focus remains on further executing strategic initiatives ONLINE RETAIL ASIA HUGO PRODUCTIVITY
Slide 20: Driving brand desirability with Fall/Winter 2020 Fashion Show
20 FY 2019 RESULTS PRESENTATION Driving brand desirability with Fall/Winter 2020 Fashion Show FALL/WINTER 2020 FASHION SHOW MILAN, ITALY
Slide 21: Driving brand desirability with innovative product launches
21 FY 2019 RESULTS PRESENTATION Driving brand desirability with innovative product launches
Slide 22: Focus on strengthening the business in North America
22 FY 2019 RESULTS PRESENTATION Focus on strengthening the business in North America
Slide 23: Update on coronavirus
23 FY 2019 RESULTS PRESENTATION Update on coronavirus
Slide 24: Outlook for the full year 2020
24 FY 2019 RESULTS PRESENTATION Outlook for the full year 2020 GROUP Development within a range of 0% to +2% SALES EUR 320 million to EUR 350 million EBIT* * Including the effects of IFRS 16
Slide 25: Investor Day
25 FY 2019 RESULTS PRESENTATION Investor Day 2020 JUNE METZINGEN, GERMANY 18 19
Slide 26: Q&A
26 FY 2019 RESULTS PRESENTATION Q&A