Hugo Boss Ag · XETR:BOSS
Hugo Boss — Q3 2021 Earnings Presentation
20 slides from Hugo Boss's earnings presentation, Nov 4, 2021
Slide 1: Third Quarter 2021 Results
THIRD QUARTER 2021 RESULTS
Slide 2: Yves Müller, CFO
YVES MÜLLER CFO
Slide 3: HUGO BOSS Records Strong Q3 2021 Results
THIRD QUARTER 2021 RESULTS PAGE 3 HUGO BOSS RECORDS STRONG Q3 2021 RESULTS Momentum accelerates across all brands, channels, and key regions Sales and earnings exceed pre-pandemic levels
Slide 4: Business Recovery Strongly Accelerates in Q3
THIRD QUARTER 2021 RESULTS PAGE 4 BUSINESS RECOVERY STRONGLY ACCELERATES IN Q3 GROUP EUR 755 SALES MILLION +40% * +7% * VS. Q3 2020 VS. Q3 2019 *CURRENCY-ADJUSTED
Slide 5: Sales by Brand Growth vs. Q3 2020 and Q3 2019
THIRD QUARTER 2021 RESULTS PAGE 5 +38% +51% * * +6% +14% * * VS. Q3 2020 VS. Q3 2020 © 2021 HUGO BOSS VS. Q3 2019 VS. Q3 2019 *CURRENCY-ADJUSTED
Slide 6: Strong Local Demand Drives Business in Europe
THIRD QUARTER 2021 RESULTS PAGE 6 STRONG LOCAL DEMAND DRIVES BUSINESS IN EUROPE EUROPE SALES INCL. MIDDLE EAST AND AFRICA Rebound in local demand spurs overall momentum in the region +38% +9% * Revenues in key markets such as the * UK, France, and Germany exceed 2019 levels VS. Q3 2020 VS. Q3 2019 *
Slide 7: Momentum in the Americas Further Accelerates
THIRD QUARTER 2021 RESULTS PAGE 7 MOMENTUM IN THE AMERICAS FURTHER ACCELERATES AMERICAS SALES Strong growth across all of the region’s key markets, driven by robust local demand +94% * +14% * U.S. retail business grows double-digits as compared to pre-pandemic levels VS. Q3 2020 VS. Q3 2019 *CURRENC
Slide 8: Consumer Sentiment Impacted by Pandemic-Related Restrictions
THIRD QUARTER 2021 RESULTS PAGE 8 CONSUMER SENTIMENT IMPACTED BY PANDEMIC-RELATED RESTRICTIONS ASIA/PACIFIC SALES Temporary store closures weigh on various markets in Southeast Asia (1)% * (14)% * Consumer sentiment in mainland China reaccelerates towards the end of Q3 VS. Q3 2020 VS. Q3 2019 *CURRE
Slide 9: Strong Dynamic Across All Channels
THIRD QUARTER 2021 RESULTS PAGE 9 STRONG DYNAMIC ACROSS ALL CHANNELS OWN RETAIL ONLINE WHOLESALE + 40% + 37% + 40% VS. Q3 2020 VS. Q3 2020 VS. Q3 2020 + 13% + 127% (1)% VS. Q3 2019 VS. Q3 2019 VS. Q3 2019 Brick and mortar retail Strong double-digit Revenues with online business returns to growth acr
Slide 10: Significant Bottom-Line Improvements in Q3
THIRD QUARTER 2021 RESULTS PAGE 10 SIGNIFICANT BOTTOM-LINE IMPROVEMENTS IN Q3 VS. Q3 2020 VS. Q3 2019 GROUP SALES EUR 755 MILLION +42% +5% GROSS PROFIT EUR 466 MILLION +41% +2% GROSS MARGIN 61.7% (20) bp (160) bps OPERATING EXPENSES EUR 381 MILLION +21% +2% IN % OF SALES 50.4% (880) bp (140) bp SELL
Slide 11: Strong Improvement in Free Cash Flow Development
THIRD QUARTER 2021 RESULTS PAGE 11 STRONG IMPROVEMENT IN FREE CASH FLOW DEVELOPMENT Inventories decrease 6%* as a result of the strong sales growth in the third quarter TNWC CAPITAL FREE Increase in capital expenditure EXPENDITURE CASH FLOW mainly reflects the further store SEPTEMBER 30, 2021 JULY–S
Slide 12: Execution of CLAIM 5 Strategy in Full Swing
THIRD QUARTER 2021 RESULTS PAGE 12 EXECUTION OF CLAIM 5 STRATEGY IN FULL SWING
Slide 13: Boost Brands: BOSS x Russell Athletic Launch
THIRD QUARTER 2021 RESULTS PAGE 13 SPECTACULAR PHYGITAL LAUNCH OF BOSS X RUSSELL ATHLETIC 2.0 25 MILLION SOCIAL ENGAGEMENTS 4 BILLION IMPRESSIONS IN 4 DAYS BOOST BRANDS © 2021 HUGO BOSS
Slide 14: Lifestyle Brand: Product Is King
THIRD QUARTER 2021 RESULTS PAGE 14 24/7 LIFESTYLE BRAND TURNING CONSUMERS INTO FANS CREATING BUZZ AMONG YOUNGER CONSUMERS FURTHER STRENGTHENING CASUALWEAR PRODUCT IS KING © 2021 HUGO BOSS
Slide 15: Boost Brands: Branding Refresh in January 2022
THIRD QUARTER 2021 RESULTS PAGE 15 BRANDING REFRESH TO BECOME VISIBLE IN JANUARY 2022 BOOST BRANDS
Slide 16: Relaunch of hugoboss.com in Early 2022
THIRD QUARTER 2021 RESULTS PAGE 16 RELAUNCH OF HUGOBOSS.COM IN EARLY 2022 LEAD IN DIGITAL
Slide 17: BOSS Store London Oxford Street
THIRD QUARTER 2021 RESULTS PAGE 17 BOSS STORE LONDON OXFORD STREET OPENING EARLY 2022 REBALANCE OMNICHANNEL
Slide 18: Organizational Structure Further Strengthened
THIRD QUARTER 2021 RESULTS PAGE 18 ORGANIZATIONAL STRUCTURE FURTHER STRENGTHEND KRISTINA SZÁSZ CHRISTOPHER KÖRBER MIAH SULLIVAN LUIGI BOIOCCHI JUDITH SUN BUSINESS UNITS MARKETING SALES ORGANIZE FOR GROWTH
Slide 19: HUGO BOSS Increases Outlook for FY 2021
THIRD QUARTER 2021 RESULTS PAGE 19 HUGO BOSS INCREASES OUTLOOK FOR FY 2021 GROUP SALES * INCREASE BY ~40% EBIT BETWEEN EUR 175 MILLION AND EUR 200 MILLION TNWC IMPROVE TO A LEVEL (IN % OF SALES) OF 19% - 20% CAPEX BETWEEN EUR 100 MILLION AND EUR 130 MILLION *CURRENCY-ADJUSTED
Slide 20: Q&A
THIRD QUARTER 2021 RESULTS PAGE 20 Q&A