Hugo Boss Ag · XETR:BOSS
Hugo Boss — Q1 2020 Earnings Presentation
20 slides from Hugo Boss's earnings presentation, May 5, 2020
Slide 1: First Quarter 2020 Results Presentation
1 Q1 2020 RESULTS PRESENTATION FIRST QUARTER 2020 RESULTS PRESENTATION MAY 5, 2020
Slide 2: Mark Langer, CEO
2 Q1 2020 RESULTS PRESENTATION MARK LANGER CEO
Slide 3: HUGO BOSS takes social responsibility seriously
3 Q1 2020 RESULTS PRESENTATION HUGO BOSS takes social responsibility seriously PRODUCTION OF REUSABLE FACE MASKS, PROTECTIVE OVERALLS, & FACE SHIELDS
Slide 4: Temporary store closures to protect customers and employees
4 Q1 2020 RESULTS PRESENTATION Temporary store closures to protect customers and employees Open Closed Germany France UK Europe* US Americas Mainland Hong Kong/ Asia/ Group China Macau Pacific As of March 31, 2020 *Including Middle East and Africa
Slide 5: Pandemic weighs on business performance in the first quarter
5 Q1 2020 RESULTS PRESENTATION GROUP SALES Q1 2020 EUR 555 MILLION (17)% CURRENCY-ADJUSTED Pandemic weighs on business performance in the first quarter
Slide 6: Gradual recovery of business in Mainland China
6 Q1 2020 RESULTS PRESENTATION ASIA/ PACIFIC (31) %* <<<<<< * Three weeks of strong double-digit growth in the run-up to Chinese New Year. Q1 sales in China significantly affected by temporary store closures. Encouraging and steady improvement in Mainland China since the end of March. Online busines
Slide 7: Store closures weigh on performance in Europe
7 Q1 2020 RESULTS PRESENTATION EUROPE ** (14) %* <<<<<< * Strong momentum from Q4/2019 continues in many key markets in January and February. Store closures in mid-March lead to a decline in retail sales of 10% currency-adjusted. Wholesale sales down 19% currency-adjusted, reflecting lower deliverie
Slide 8: Positive momentum in the Americas halted by COVID-19
8 Q1 2020 RESULTS PRESENTATION AMERICAS (17) %* <<<<<< * Encouraging sales development in January and February, with solid comp store sales improvements in the U.S. market. Temporary store closures weigh on business in the U.S. and Canada, starting in mid-March. Latin America records sales growth, a
Slide 9: Online continues its double-digit growth trajectory
9 Q1 2020 RESULTS PRESENTATION ONLINE + 39% * Online business records tenth consecutive quarter of strong double-digit growth. Share of online business increases to 11% of own retail revenues compared to 7% in the prior-year period. Online business with strong acceleration in April. Online continues
Slide 10: Retail and wholesale equally affected by COVID-19
10 Q1 2020 RESULTS PRESENTATION RETAIL (17)%* Retail comp store sales down 20% in the first quarter. Non-like-for-like retail business benefits from online expansion and store refurbishments in 2019. Wholesale performance impacted by lower deliveries to partners as well as (18)%* several conversion
Slide 11: HUGO BOSS well equipped to manage the COVID-19 pandemic
11 Q1 2020 RESULTS PRESENTATION HUGO BOSS WELL EQUIPPED TO MANAGE THE COVID-19 PANDEMIC.
Slide 12: Yves Müller, CFO
12 Q1 2020 RESULTS PRESENTATION YVES MÜLLER CFO
Slide 13: Top-line development weighs on bottom-line performance in the first quarter
13 Q1 2020 RESULTS PRESENTATION Top-line development weighs on bottom-line performance in the first quarter Gross margin Selling & distribution Administration EBIT* Net income* expenses* expenses* EUR EUR EUR EUR 62.9 288 75 (14) (18) % MILLION MILLION MILLION MILLION (90) bp 0% (6)% <(100)% <(100)%
Slide 14: Profit development weighs on free cash flow
14 Q1 2020 RESULTS PRESENTATION TNWC* Capital expenditure Free cash flow March 31, 2020 Jan.–Mar. Jan.–Mar. Trade net working capital positively impacted by lower trade receivables. EUR EUR EUR Inventory growth of 6% reflects temporary store closures. 592 18 (86) MILLION Lower capital expenditure du
Slide 15: Comprehensive measures to secure financial stability
15 Q1 2020 RESULTS PRESENTATION 1 2 Strict cost management Postponement Additional cost savings of at of investments Comprehensive least EUR 150 million targeted CAPEX budget cut measures to secure by around one third financial stability and flexibility 3 4 Limitation of Retention of net profit TNWC
Slide 16: Comprehensive measures to secure financial stability
16 Q1 2020 RESULTS PRESENTATION 1 2 Strict cost management Postponement Additional cost savings of at of investments Comprehensive least EUR 150 million targeted CAPEX budget cut measures to secure by around one third financial stability and flexibility 3 4 Limitation of Retention of net profit TNWC
Slide 17: Comprehensive measures to secure financial stability
17 Q1 2020 RESULTS PRESENTATION 1 2 Strict cost management Postponement Additional cost savings of at of investments Comprehensive least EUR 150 million targeted CAPEX budget cut measures to secure by around one third financial stability and flexibility 3 4 Limitation of Retention of net profit TNWC
Slide 18: Comprehensive measures to secure financial stability
18 Q1 2020 RESULTS PRESENTATION 1 2 Strict cost management Postponement Additional cost savings of at of investments Comprehensive least EUR 150 million targeted CAPEX budget cut measures to secure by around one third financial stability and flexibility 3 4 Limitation of Retention of net profit TNWC
Slide 19: Update Q2/FY 2020 Expectations
19 Q1 2020 RESULTS PRESENTATION UPDATE Q2/FY 2020 EXPECTATIONS
Slide 20: Q&A
20 Q1 2020 RESULTS PRESENTATION Q&A