Hugo Boss AG · XETR:BOSS

Hugo Boss — Q1 2022 Earnings Presentation

22 slides from Hugo Boss's earnings presentation, May 4, 2022

  1. Slide 1: First Quarter 2022 Results

    FIRST QUARTER 2022 RESULTS HUGO BOSS

  2. Slide 2: Yves Müller, CFO

    YVES MULLER CFO HUGO BOSS

  3. Slide 3: HUGO BOSS with record Q1 sales

    FIRST QUARTER 2022 RESULTS PAGE 3 HUGO BOSS WITH RECORD Q1 SALES +17% +12% +7% (4)% (23)% GROUP SALES EUR 772 MILLION Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 +52% * VS Q1 2021 SALES GROWTH* VS 2019 *CURRENCY-ADJUSTED

  4. Slide 4: Star-studded campaigns create strong buzz for BOSS and HUGO

    FIRST QUARTER 2022 RESULTS PAGE 4 STAR-STUDDED CAMPAIGNS CREATE STRONG BUZZ FOR BOSS AND HUGO ~ 24 BN Impressions within 3 months 1 BN Social ~ engagements within 3 months BOOST BRANDS

  5. Slide 5: Social media KPIs for BOSS strongly improve in Q1

    FIRST QUARTER 2022 RESULTS PAGE 5 SOCIAL MEDIA KPIS FOR BOSS STRONGLY IMPROVE IN Q1 ~10 M | +5% FOLLOWERS ON BOSS INSTAGRAM 16% ENGAGEMENT RATE ON INSTAGRAM MORE THAN DOUBLES >32 M VIEWS RECORD-BREAKING RESULTS OF DUBAI SHOW ON YOUTUBE

  6. Slide 6: HUGO kicks off the music festival season at Coachella

    FIRST QUARTER 2022 RESULTS PAGE 6 HUGO KICKS OFF THE MUSIC FESTIVAL SEASON AT COACHELLA >1.3 BN IMPRESSIONS ~200 M VIEWS ON TIKTOK 26% ENGAGEMENT RATE ON INSTAGRAM

  7. Slide 7: Brand sales growth (BOSS and HUGO)

    FIRST QUARTER 2022 RESULTS PAGE 7 +53%* +41%* +52%* *CURRENCY-ADJUSTED VS Q1 2021 VS Q1 2021 +17%* 0%* +26% * VS Q1 2021 © 2021 HUGO BOSS VS Q1 2019 VS Q1 2019 VS Q1 2019

  8. Slide 8: Momentum in Europe further accelerates

    FIRST QUARTER 2022 RESULTS PAGE 8 MOMENTUM IN EUROPE FURTHER ACCELERATES EUROPE SALES INCL. MIDDLE EAST AND AFRICA Momentum further accelerates, driven by robust local demand in key European markets +69% +21% * * Revenues in the UK and France strongly exceed pre-pandemic levels, up double-digits vs

  9. Slide 9: Strong growth trajectory in the Americas continues

    FIRST QUARTER 2022 RESULTS PAGE 9 STRONG GROWTH TRAJECTORY IN THE AMERICAS CONTINUES AMERICAS SALES increases vs 2019 levels +56% +17% * * Momentum in the U.S. market continues, due to strong progress in fostering 24/7 brand image vs Q1 2021 vs Q1 2019 Latin America with particular strength, as refl

  10. Slide 10: Renewed COVID-19 restrictions weigh on sentiment in China

    FIRST QUARTER 2022 RESULTS PAGE 10 RENEWED COVID-19 RESTRICTIONS WEIGH ON SENTIMENT IN CHINA ASIA/PACIFIC SALES Mainland China with double-digit sales improvements in the run-up to Chinese New Year +3% (1)% * * Lockdowns weigh on sentiment and traffic in mainland China from mid-March onwards vs Q1 2

  11. Slide 11: Digital business continues double-digit growth trajectory

    FIRST QUARTER 2022 RESULTS PAGE 11 DIGITAL BUSINESS CONTINUES DOUBLE-DIGIT GROWTH TRAJECTORY +22% * Double-digit improvements across all regions and digital touchpoints vs Q1 2021 Successful relaunch of hugoboss.com drives increase in traffic and AOV +145% * Digital sales account for ~20% of overall

  12. Slide 12: Brick-and-mortar retail business

    FIRST QUARTER 2022 RESULTS PAGE 12 DRIVES BRICK-AND-MORTAR RETAIL BUSINESS +76% * Robust consumer sentiment in key regions drives overall momentum vs Q1 2021 Prior-year period impacted by an average store closure rate of ~25% +5% * New store concept implemented in ~30 points of sale vs Q1 2019

  13. Slide 13: Brick-and-mortar wholesale returns to 2019 levels

    FIRST QUARTER 2022 RESULTS PAGE 13 BRICK-AND-MORTAR WHOLESALE RETURNS TO 2019 LEVELS +44% * Robust demand of wholesale partners for the Spring/Summer vs Q1 2021 2022 collections Delivery shift effects limit growth in B&M wholesale by ~10pp +2% * Strong order book for Fall/Winter vs Q1 2019 2022 to d

  14. Slide 14: Gross margin improvement mainly reflects higher share of full-price sales

    FIRST QUARTER 2022 RESULTS PAGE 14 GROSS MARGIN IMPROVEMENT MAINLY REFLECTS HIGHER SHARE OF FULL-PRICE SALES Q1 2021 Full price Channel Inventory Sourcing & FX Q1 2022 mix valuation freight cost 61.6% 60.4% +120 bp

  15. Slide 15: Significant step-up in brand and digital investments

    FIRST QUARTER 2022 RESULTS PAGE 15 SIGNIFICANT STEP-UP IN BRAND AND DIGITAL INVESTMENTS EUR EUR 80 +98% 51 +43% MILLION vs Q1 2021 MILLION vs Q1 2021 BRAND DIGITAL INVESTMENTS INVESTMENTS

  16. Slide 16: Strong bottom-line improvements despite significant investments

    FIRST QUARTER 2022 RESULTS PAGE 16 STRONG BOTTOM-LINE IMPROVEMENTS DESPITE SIGNIFICANT INVESTMENTS GROSS MARGIN SELLING & ADMINISTRATION EBIT NET INCOME Q1 2022 DISTRIBUTION EXPENSES Q1 2022 ATTRIBUTABLE TO EXPENSES Q1 2022 SHAREHOLDERS Q1 2022 Q1 2022 EUR EUR EUR EUR 61.6% 344 92 40 24 MILLION MILL

  17. Slide 17: Free cash flow with strong improvements year on year

    FIRST QUARTER 2022 RESULTS PAGE 17 FREE CASH FLOW WITH STRONG IMPROVEMENTS YEAR ON YEAR TNWC CAPITAL FREE Inventories decrease 3%* EXPENDITURE CASH FLOW reflecting strong sales growth MARCH 31, 2022 JANUARY MARCH 2022 JANUARY MARCH 2022 in the first quarter EUR EUR EUR TNWC in % of sales declines to

  18. Slide 18: HUGO BOSS confirms outlook for full year 2022

    FIRST QUARTER 2022 RESULTS PAGE 18 HUGO BOSS CONFIRMS OUTLOOK FOR FULL YEAR 2022 OUTLOOK

  19. Slide 19: Sales outlook for full year 2022

    FIRST QUARTER 2022 RESULTS PAGE 19 SALES OUTLOOK FOR FULL +10% TO +15% YEAR 2022 Broad-based growth across all brands, channels, and key regions expected 2.8 3.1-3.2 EUR BILLION EUR BILLION Strong brand momentum and robust order intake for Fall/Winter 2022 to drive top-line growth 2021 2022e

  20. Slide 20: EBIT outlook for full year 2022

    FIRST QUARTER 2022 RESULTS PAGE 20 EBIT OUTLOOK FOR FULL +10% TO +25% YEAR 2022 Robust bottom-line improvements anticipated, despite significant step-up 228 250-285 EUR MILLION EUR MILLION Expected top-line growth and robust market positioning to compensate for current macroeconomic uncertainties 20

  21. Slide 21: Successful start into fiscal 2022

    FIRST QUARTER 2022 RESULTS PAGE 21 SUCCESSFUL START INTO FISCAL 2022 Strong top- and bottom-line improvements, as momentum further accelerates in Q1 Successful branding refresh drives relevance and perception of BOSS and HUGO Sales and earnings outlook for full year 2022 confirmed

  22. Slide 22: Q&A

    FIRST QUARTER 2022 RESULTS PAGE 22 Q&A

Hugo Boss — Q1 2022 Earnings Presentation on 6ix