Hugo Boss Ag · XETR:BOSS
Hugo Boss — Investor Presentation (November 2024)
87 slides from Hugo Boss's investor presentation, November 2024
Slide 1: Investor Meeting Presentation
INVESTOR MEETING PRESENTATION 11/2024 © 2023 HUGO BOSS
Slide 2: Agenda
AGENDA 01 02 Q3 2024 RESULTS 03 FY 2024 OUTLOOK 04 GENERAL INFORMATION © 2022 HUGO BOSS
Slide 3: Vision and Mission
PAGE 3 VISION MISSION BECOME THE PREMIUM TECH- WE LOVE DRIVEN FASHION FASHION, PLATFORM WE CHANGE WORLDWIDE FASHION © 2022 HUGO BOSS
Slide 4: Financial Ambition
PAGE 4 FINANCIAL AMBITION BILLION SALES EBIT MARGIN
Slide 5: Claim 5 Strategy
PAGE 5 CLAIM 5 STRATEGY WHY CONSUMER FIRST WHAT 1 2 3 4 5 BOOST PRODUCT LEAD IN DRIVE ORGANIZE BRANDS IS KEY DIGITAL OMNICHANNEL FOR GROWTH SUSTAINABLE THROUGHOUT HOW RIGOROUS EXECUTION EMPOWER PEOPLE AND TEAMS
Slide 6: Boost Brands
PAGE 6 01 01 01 BOOST BRANDS 01 CLAIM 1 01
Slide 7: Two Clearly Distinguished Brands
PAGE 7 WE REVITALIZED OUR BRAND PORTFOLIO STRATEGY AND BRAND ARCHITECTURE WITH TWO CLEARLY DISTINGUISHED BRANDS POSSIBILITY TO ADD MORE BUSINESSES WITH PREMIUM LIFESTYLE POSITIONING
Slide 8: BOSS: Be Your Own BOSS Lifestyle
PAGE 8 BE YOUR OWN BOSS 24/7 BOSS addresses customers in the LIFESTYLE premium segment who lead a self- determined life, show a clear attitude, and pursue ambitions with determination BOSS offers the perfect outfit for every occasion from business to leisure with casualness and comfort being key att
Slide 9: HUGO: Your Way
PAGE 9 HUGO YOUR WAY HUGO targets customers who consider their way of dressing as an expression of their individual personality and who see themselves as trendsetters HUGO offers a broad range of trendy and modern products and unconventional style
Slide 10: Clearly Distinguished Marketing
PAGE 10 CLEARLY DIFFERENT LIFESTYLE DISTINGUISHED BRANDS MARKETING STRATEGIES DIFFERENT TARGET GROUPS DIFFERENT MARKETING APPROACHES © 2023 HUGO BOSS
Slide 11: Maximize Consumer Impact
PAGE 11 OVERALL MARKETING STRATEGY ▪ Marketing investments to remain at 7-8% of Group sales ▪ Activate consumers across all touchpoints ▪ Continue a digital-first marketing strategy ▪ Become culturally relevant through sports, music, arts, and collabs ▪ Sustainably connect with consumers through emo
Slide 12: Activation of Millennials and Gen Z via Social Media
PAGE 12 SUCCESSFUL ACTIVATION OF MILLENNIALS AND GEN Z VIA FOCUS ON SOCIAL MEDIA FOLLOWERS IMPRESSIONS ENGAGEMENTS NEW FOLLOWERS IMPRESSIONS ENGAGEMENTS >10 ~120 ~3 MILLION BILLION BILLION VS. 2021 VS. 2021 VS. 2021 © 2022 HUGO BOSS
Slide 13: Product Is Key
PAGE 13 02 02 02 PRODUCT IS KEY 02 CLAIM 2 02
Slide 14: Brand Lines Reflect BOSS Menswear 24/7 Lifestyle Promise
PAGE 14 BRAND LINES REFLECT BOSS MENSWEAR 24/7 LIFESTYLE PROMISE FROM HIGH-END TO MODERN BOLD SMART AND DENIM TO AN ACTIVE TAILORING PERFORMANCE CASUAL COMPETENCE... LIFESTYLE HERITAGE... SUITS... STYLES... BOSS CAMEL BOSS BLACK BOSS ORANGE BOSS GREEN
Slide 15: Product Strategy BOSS Menswear
PAGE 15 PRODUCT STRATEGY BOSS MENSWEAR ▪ Amplify the brand DNA own the heritage in suiting ~ in a modern way AMBITION ▪ Offer products to wear 24/7 from morning to evening ▪ Keep the momentum and sharpen the collection to consumer and regional needs ▪ Claim price-value leadership across categories ▪
Slide 16: Brand Lines Reflect BOSS Womenswear 24/7 Lifestyle Promise
PAGE 16 BRAND LINES REFLECT BOSS WOMENSWEAR 24/7 LIFESTYLE PROMISE FROM HIGH-END TO MODERN BOLD SMART AND DENIM INTO AN ACTIVE TAILORING TAILORING... CASUAL COMPETENCE... LIFESTYLE HERITAGE... STYLES... BOSS BLACK BOSS ORANGE COLLABS
Slide 17: Product Strategy BOSS Womenswear
PAGE 17 PRODUCT STRATEGY BOSS WOMENSWEAR ▪ Offer products to wear 24/7 from morning to ~ evening AMBITION ▪ Foster cohesive aesthetic between BOSS Menswear and Womenswear communication ▪ Amplify brand DNA translate heritage in suiting into new businesswear ▪ Partner up with industry leaders to boost
Slide 18: HUGO Celebrates 24H Self-Expression
PAGE 18 HUGO CELEBRATES 24H SELF-EXPRESSION IN EVERY SITUATION Modern and authentic HUGO style to gain relevance among younger and young- minded consumers Balanced offer of commercial and contemporary pieces WORK CELEBRATE HANG OUT EXPLORE MOVE Investment in new categories such as womenswear bodywea
Slide 19: Product Strategy HUGO
PAGE 19 PRODUCT STRATEGY HUGO ▪ Foster cohesive aesthetic between Menswear ~ and Womenswear AMBITION ▪ Balance out commercial and more contemporary designs ▪ Mix tailoring and streetwear for HUGO RED and push clothing, jersey, and outerwear ▪ Leverage HUGO BLUE to grasp growth opportunity in denim ~
Slide 20: Two Brand Lines with Dedicated Styles
PAGE 20 TWO BRAND LINES WITH DEDICATED STYLES AND COMMON BRAND VALUES HUGO RED WITH A HUGO BLUE STRONG FOCUS ON EMPHASIZES STREET TAILORING COMMERCIAL FOR FASHION- STYLES WITH DENIM FORWARD AT THE CORE CONSUMERS
Slide 21: Global Licenses Business Extends 24/7 Lifestyle Promise
PAGE 21 GLOBAL LICENSES BUSINESS EXTENDS 24/7 LIFESTYLE PROMISE FRAGRANCES EYEWEAR WATCHES & KIDSWEAR HOME JEWELRY WRITING & DOG GOLF APAC CYCLING EQUESTRIAN LUGGAGE GIFTS ACCESSORIES
Slide 22: Lead in Digital
PAGE 22 03 03 03 LEAD IN DIGITAL 03 CLAIM 3 03
Slide 23: Constantly Developing Digital Capabilities
PAGE 23 CONSTANTLY DEVELOPING DIGITAL CAPABILITIES TO EMPHASIZE SPEED, PERSONALIZATION, AND COST EFFICIENCY DESIGN & PRODUCTION SALES & DEMAND DEVELOPMENT & LOGISTICS MARKETING Trend Product Modular product Digital Metaverse Digital Showroom Advanced analytics detection creation development Twin exp
Slide 24: Shifting Towards Trend Analytics with Data and Generative AI
PAGE 24 SHIFTING TOWARDS TREND ANALYTICS BY THE HELP OF DATA INSIGHTS AND GENERATIVE AI GENERATIVE AI CREATES NEW SPACES FOR CREATIVITY. IDENTIFY IMPROVE WIN KEY EMERGING TIME-TO-MARKET WITH RELEVANT TRENDS CONSUMER GROUPS DESIGN & PRODUCTION SALES & DEMAND DEVELOPMENT & LOGISTICS MARKETING
Slide 25: Foster Digital Product Creation
PAGE 25 FOSTER DIGITAL PRODUCT CREATION TO ACCELERATE DESIGN AND DEVELOPMENT PROCESS DIGITAL PRODUCT CREATION TO INCREASE EFFICIENCY, REDUCE COSTS, AND FURTHER OPTIMIZE QUALITY. ~55% ~65% >90% DIGITAL STYLE DIGITAL STYLE DIGITAL STYLES CREATION CREATION TARGETED WINTER 2023 2023 BY 2025 DESIGN & PRO
Slide 26: Launch of the Digital Twin
PAGE 26 LAUNCH OF THE DIGITAL TWIN TO BUILD THE BACKBONE OF FUTURE GROWTH DIGITAL TWIN ENABLES SMART DECISION-MAKING BY CONNECTING PLANNING AND EXECUTION, FROM DEMAND TO SUPPLY. SUSTAIN BOOST INCREASE GROWTH PROFITABILITY SUPPLY CHAIN TRANSPARENCY DESIGN & PRODUCTION SALES & DEMAND DEVELOPMENT & LOG
Slide 27: Digital Innovation in Retail
PAGE 27 DIGITAL INNOVATION IN RETAIL AS AN INTEGRAL PART OF OUR GROWTH JOURNEY VIRTUAL STYLING enabling virtual try-ons based on personalized mannequins IN-STORE DIGITALIZATION adding new digital touchpoints into stores to create an attractive point of access to products and services RFID TECHNOLOGY
Slide 28: Drive Omnichannel
PAGE 28 04 04 04 DRIVE OMNICHANNEL 04 CLAIM 4 04
Slide 29: We Move to Where Consumers Expect Us to Be
PAGE 29 WE MOVE TO WHERE CONSUMERS EXPECT US TO BE KEEP MAINTAIN ADAPT RETAIL WHOLESALE DIGITAL AT AT TO >50% ~25% >20% OF GROUP SALES OF GROUP SALES OF GROUP SALES
Slide 30: Experiential in Retail
PAGE 30 EXPERIENTIAL IN RETAIL ACTIONS ENABLERS ▪ Become THE ▪ Experiential store design, for our customers pop-ups, and digitalization at the POS ▪ Enhance customer experience with a desirable ▪ Valuable hospitality concept look and feel ▪ Excellence in store ▪ Increase productivity by at managemen
Slide 31: Increase Store Productivity
PAGE 31 INCREASE STORE PRODUCTIVITY BY AT LEAST 3% PER YEAR STORE PRODUCTIVITY ( ▪ Rollout of latest store concepts +4% VS. 2022 ▪ Continue store optimization program ▪ Constantly improve product offering at the POS 12,400 >13,000 2023 AMBITION
Slide 32: Win with the Winners in Wholesale
PAGE 32 WIN WITH THE WINNERS IN WHOLESALE ACTIONS ENABLERS ▪ Leverage brand lines ▪ Strong positioning of brands and focused product offering ▪ Grow with existing strong partners ▪ Strong relationship based on customer and product ▪ Drive digital selling and insights automated replenishment ▪ Improv
Slide 33: Exploit Potential of Global Franchise Business
PAGE 33 EXPLOIT THE FULL POTENTIAL OF OUR GLOBAL FRANCHISE BUSINESS FOCUS ON EXPANDING NUMBER OF IN EMERGING MARKETS FRANCHISE STORES 2023 ~60 AMERICAS 2023 ~210 EMEA ~350 ~500 2023 ~80 2023 TARGET 2025+ ASIA/PACIFIC
Slide 34: Inspirational in Digital
PAGE 34 INSPIRATIONAL IN DIGITAL ACTIONS ENABLERS ▪ Expand and grow ▪ Localized content and hugoboss.com marketing ▪ Improve user experience and ▪ Latest app skills and AI- push mobile and social driven features commerce ▪ Data-driven decision-making ▪ Grow with strong digital and improvement of pro
Slide 35: Successful Rollout Enhances Omnichannel Experience
PAGE 35 ENHANCES OMNICHANNEL EXPERIENCE +25%* SUCCESSFUL YEAR OVER YEAR ROLLOUT REGISTERED CUSTOMERS TO THE UK, GERMANY, AND TO ~10 MILLION FRANCE *AT THE END OF Q3 2024 © 2023 HUGO BOSS
Slide 36: Leveraging Potential of hugoboss.com
PAGE 36 LEVERAGING POTENTIAL OF HUGOBOSS.COM BY DELIVERING NEXT-LEVEL DIGITAL EXPERIENCE DESIRABLE CONTENT DESIGNED PERSONALIZED STORYTELLING AND AND ADAPTED TO CUSTOMER JOURNEY BRAND CONTENT LOCAL NEEDS LEVERAGING AI INCREASED PAGE VALUE HIGHER TRAFFIC NEW CUSTOMERS HIGHER CONVERSION
Slide 37: Keep Growth Trajectory in the Americas
PAGE 37 KEEP GROWTH TRAJECTORY IN THE AMERICAS AMERICAS ▪ Continue to push 24/7 brand image in our single largest market, the U.S. ▪ Further expand visibility in U.S. department stores and roll out digital marketplaces ~20% ▪ Strengthen store network in Latin America AMBITION
Slide 38: Exploit Growth Momentum in EMEA
PAGE 38 EXPLOIT GROWTH MOMENTUM IN EMEA EMEA ▪ Continue to enhance and upgrade distribution network ▪ Accelerate franchise development ▪ Capitalize on business >55% opportunities across brand lines AMBITION
Slide 39: Unleash Full Potential in Asia/Pacific
PAGE 39 UNLEASH THE FULL POTENTIAL IN ASIA/PACIFIC APAC ▪ Secure affordable luxury position in China, Japan, and Korea ▪ Strengthen retail and drive wholesale in Southeast Asia & Pacific ~20% ▪ Boost digital commerce AMBITION
Slide 40: Organize for Growth
PAGE 40 05 05 05 ORGANIZE FOR GROWTH 05 CLAIM 5 05
Slide 41: Stepping Up Investments in Logistics Network
PAGE 41 STEPPING UP INVESTMENTS IN OUR LOGISTICS NETWORK TO SUPPORT GROWTH AMBITION LOGISTICS CAPACITY LOGISTICAL EXPANSIONS OWN USA ~65M ~90M OPERATIONS GERMANY THIRD-PARTY UK UNITS CAPACITY UNITS CAPACITY PROVIDER IN 2023 MID-TERM CHINA
Slide 42: Expansion of Own Production Capacities in Izmir
PAGE 42 SUCCESSFUL EXPANSION OF OUR OWN PRODUCTION CAPACITIES ~20% >5% OF TOTAL OF GLOBAL PRODUCTION CASUALWEAR CAPACITY SOURCING DEDICATED TO COMING FROM IZMIR IZMIR CASUALWEAR 17% * OWN PRODUCTION EXPANSION THEREOF ~15%* IN IZMIR, TURKEY * IN % OF TOTAL SOURCING AND PRODUCTION VOLUME
Slide 43: Advancing with Nearshoring
PAGE 43 ADVANCING WITH NEARSHORING TO BETTER ALIGN REGIONAL SOURCING ACTIVITIES WITH SALES MARKETS GROW IN THE SELECTIVELY REDISTRIBUTE AMERICAS EXPAND EMEA WITHIN APAC SOURCING VOLUMES BY REGION ~10% AMBITION ~50% AMBITION ~40% AMBITION 2% IN 2023 52% IN 2023 46% IN 2023 SALES BY REGION (2023) 23%
Slide 44: Sustainable Throughout
PAGE 44 I SUSTAINABLE THROUGHOUT © 2022 HUGO BOSS
Slide 45: Strong Achievements in Sustainability
PAGE 45 STRONG ACHIEVEMENTS IN THE AREAS OF SUSTAINABILITY 7X LISTED IN STRATEGIC PARTNERSHIP DOW JONES HEIQ AEONIQ, SUSTAINABILITY A CELLULOSIC INDEX FILAMENT YARN
Slide 46: Our Sustainability Strategy
PAGE 46 OUR SUSTAINABILITY STRATEGY TO REACH SUSTAINABLE THROUGHOUT FOR A PLANET FREE OF WASTE & POLLUTION INCREASE DRIVE LEVERAGE FIGHT PUSH ZERO CIRCULARITY DIGITIZATION NATURE MICRO- EMISSIONS & DATA POSITIVE PLASTICS ANALYTICS MATERIALS ENVIRONMENTAL CORE SOCIAL CORE GOVERNANCE CORE
Slide 47: Strategic Sustainability Goals and Strong Core
PAGE 47 WITH STRATEGIC SUSTAINABILITY GOALS AND A STRONG CORE WE STRIVE FOR A PLANET FREE OF WASTE & POLLUTION FOR A PLANET FREE OF WASTE & POLLUTION DRIVE LEVERAGE INCREASE FIGHT PUSH ZERO DIGITIZATION & NATURE POSITIVE CIRCULARITY MICROPLASTICS EMISSIONS DATA ANALYTICS MATERIALS 80% >90% 100% 0% -
Slide 48: Environmental, Social and Governance Targets and Standards
PAGE 48 OUR STRONG CORE IS BUILT ON PROFOUND ENVIRONMENTAL, SOCIAL & GOVERNANCE TARGETS & STANDARDS SUSTAINABLE WASTE AVOID ENERGY & WATER ENVIRONMENTAL MATERIALS REDUCTION POLLUTION EFFICIENCY CORE DIVERSITY, EQUITY EMPLOYEE PURCHASING WORKING & INCLUSION SATISFACTION PRACTICES CONDITIONS SOCIAL CO
Slide 49: Third Quarter 2024 Results
PAGE 49 THIRD QUARTER 2024 RESULTS NOVEMBER 5, 2024 © 2022 HUGO BOSS
Slide 50: Solid Performance in Third Quarter
PAGE 50 HUGO BOSS WITH SOLID PERFORMANCE IN THIRD QUARTER ✓ REVENUE IMPROVEMENTS IN Q3 DESPITE SUBDUED CONSUMER SENTIMENT ✓ Q3 PERFORMANCE REFLECTS BRAND STRENGTH OF BOSS AND HUGO ✓ PROGRESS IN IMPROVING COST EFFICIENCY SUPPORTS BOTTOM-LINE DEVELOPMENT © 2022 HUGO BOSS
Slide 51: Returns to Growth in Third Quarter
PAGE 51 HUGO BOSS RETURNS TO GROWTH IN THIRD QUARTER GROUP SALES CURRENCY-ADJUSTED IN GROUP CURRENCY 1,029 +1% 0% EUR MILLION VS. Q3 2023 VS. Q3 2023 © 2022 HUGO BOSS
Slide 52: Brand and Product Initiatives Drive Momentum
PAGE 52 BRAND AND PRODUCT INITIATIVES DRIVE BRAND MOMENTUM OF BOSS AND HUGO BOSS FALL/WINTER BOSS SPRING/SUMMER HUGO X 2024 CAMPAIGN 2025 FASHION SHOW RED BULL x2 > 40 ENGAGEMENTS MILLION VS. FALL/WINTER LIVE-STREAMING 2023 CAMPAIGN VIEWS © 2022 HUGO BOSS
Slide 53: Solid Revenue Improvements for BOSS and HUGO
PAGE 53 SOLID REVENUE IMPROVEMENTS FOR BOSS AND HUGO IN Q3 +1% * +2% * +2% * *CURRENCY-ADJUSTED VS. Q3 2023 VS. Q3 2023 VS. Q3 2023 BOSS BOSS HUGO MENSWEAR WOMENSWEAR © 2022 HUGO BOSS
Slide 54: Growth in Americas and EMEA Offsets Asia/Pacific Decline
PAGE 54 GROWTH IN THE AMERICAS AND EMEA OFFSETS DECLINE IN ASIA/PACIFIC AMERICAS EMEA ASIA/PACIFIC +4% * +1% * (7)% * VS. Q3 2023 VS. Q3 2023 VS. Q3 2023 Growth trajectory in the Americas Revenue improvements in Germany Sales development in Asia/Pacific *CURRENCY-ADJUSTED continues, driven by succes
Slide 55: Muted Consumer Sentiment Weighs on Brick-and-Mortar Retail
PAGE 55 MUTED CONSUMER SENTIMENT WEIGHS ON BRICK-AND-MORTAR RETAIL PERFORMANCE IN Q3 B&M RETAIL B&M WHOLESALE DIGITAL (3)% VS. Q3 2023 * +4% VS. Q3 2023 * +6% VS. Q3 2023 * *CURRENCY-ADJUSTED Lower store traffic more Growth reflects robust Revenue improvements than offsets increase in order intake a
Slide 56: Bottom-Line Development Supported by Cost Efficiencies
PAGE 56 BOTTOM-LINE DEVELOPMENT SUPPORTED BY INCREASED FOCUS ON COST EFFICIENCIES EBIT EBIT MARGIN 95 9.3% EUR MILLION (7)% (80) BP VS. Q3 2023 VS. Q3 2023 © 2023 HUGO BOSS
Slide 57: Gross Margin Declines in Q3
PAGE 57 GROSS MARGIN DECLINES IN Q3 DESPITE ACCELERATED SOURCING EFFICIENCIES Product costs Freight Channel/ Sourcing Regional efficiency mix Rebates 60.7% FX 60.2% (50) bp ~ +200 BP ~(250) BP Operations platform Increased headwind successfully leveraged from external factors Q3 2023 Q3 2024© 2022 H
Slide 58: Cost Efficiency Limits Growth in Operating Expenses
PAGE 58 FOCUS ON COST EFFICIENCY LIMITS GROWTH IN OPERATING EXPENSES IN Q3 Q2 Q3 OPERATING OPERATING EXPENSES EXPENSES +9% B&M RETAIL COSTS UP 6% IN Q3; GROWTH HALVES +1% VS. Q2 (+12%) MARKETING INVESTMENTS 519 567 DECREASE OF 3% IN Q3 REFLECTS 520 524 EUR EUR EUR EUR MILLION MILLION INCREASED MARKE
Slide 59: Enhanced Cost Discipline Supports Bottom-Line Development
PAGE 59 ENHANCED COST DISCIPLINE SUPPORTS BOTTOM-LINE DEVELOPMENT Q3 2024 CHANGE GROSS MARGIN 60.2% (50) BP EXTERNAL FACTORS WEIGH ON GROSS MARGIN DEVELOPMENT OPERATING EXPENSES (IN % OF SALES) EXECUTION OF COST MEASURES LEADS TO ENHANCED EFFICIENCY 50.9% +30 BP EBIT 95 (7)% IMPROVED COST EFFICIENCY
Slide 60: Trade Net Working Capital and Free Cash Flow
PAGE 60 IMPROVEMENTS IN TRADE NET WORKING CAPITAL SUPPORT FREE CASH FLOW DEVELOPMENT SEP. 30, 2024 JULY SEP. 2024 JULY SEP. 2024 TRADE NET CAPITAL FREE CASH WORKING CAPITAL EXPENDITURE FLOW 853 20.4% EUR MILLION IN % OF SALES 89 EUR MILLION 40 EUR MILLION (10)%* +60 BP +28% >100% * CURRENCY-ADJUSTED
Slide 61: Confirms Top- and Bottom-Line Outlook
PAGE 61 HUGO BOSS CONFIRMS TOP- AND BOTTOM-LINE OUTLOOK FOR 2024 © 2022 HUGO BOSS
Slide 62: Outlook 2024: Group Sales
PAGE 62 OUTLOOK 2024 GROUP SALES Robust order intake and brand, product, and (IN GROUP CURRENCY) sales initiatives to support top-line momentum +1% TO +4% Top-line guidance includes anticipation of currencies having a slightly negative impact 4.20 TO 4.35 EUR BILLION 2024E © 2022 HUGO BOSS
Slide 63: Outlook 2024: EBIT
PAGE 63 OUTLOOK 2024 EBIT Ongoing commitment to enhancing efficiencies across organization (15)% TO +5% Implemented cost measures to support profitability also going forward 350 TO 430 EUR MILLION 2024E © 2022 HUGO BOSS
Slide 64: Balanced Approach to Safeguard Long-Term Growth Potential
PAGE 64 BALANCED APPROACH TO SAFEGUARD PROFITABILITY AND LEVERAGE LONG-TERM GROWTH POTENTIAL © 2022 HUGO BOSS
Slide 65: Outlook for Fiscal Year 2024
PAGE 65 OUTLOOK FOR FISCAL YEAR 2024 Results 2023 Outlook 2024 Increase within a range of 1% to 4% to between EUR 4.20 billion Group sales EUR 4,197 million and EUR 4.35 billion Sales by region 1 EMEA EUR 2,562 million Increase in the low single-digit percentage range Americas EUR 955 million Increa
Slide 66: Financial Calendar & Investor Relations Contact
PAGE 66 FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACT CHRISTIAN STÖHR SENIOR VICE PRESIDENT INVESTOR RELATIONS E-MAIL christian_stoehr@hugoboss.com MARCH PHONE +49 7123 94 80903 13 FULL YEAR 2024 RESULTS CONTACT LENA BIBERACHER SENIOR INVESTOR RELATIONS MANAGER 2025 CHRISTIAN STÖHR E-MAIL lena_bib
Slide 67: General Information
PAGE 67 I GENERAL INFORMATION BASED ON FY 2023 © 2022 HUGO BOSS
Slide 68: Five Strong Reasons for an Investment in HUGO BOSS
PAGE 68 FIVE STRONG REASONS FOR AN INVESTMENT IN HUGO BOSS TWO STRONG • BOSS and HUGO - clearly distinguished by their fashionable style but with the same high standards of quality and fit, 1 BRANDS innovation and sustainability. • 24/7 approach for all different wearing occasions with casualization
Slide 69: HUGO BOSS at a Glance
PAGE 69 HUGO BOSS AT A GLANCE 4.2 EUR BILLION 410 EUR MILLION 9.8% EBIT 96 EUR MILLION SALES EBIT MARGIN FREE CASH FLOW 131 ~ 19,000 19% 6,400 COUNTRIES EMPLOYEES SHARE OF POINTS DIGITAL SALES OF SALE © 2022 HUGO BOSS
Slide 70: Comparison of Actual and Forecast 2023 Business Performance
PAGE 70 COMPARISON OF ACTUAL AND FORECAST 2023 BUSINESS PERFORMANCE Results 2022 Initial forecast 2023 Latest forecast 2023 Results 2023 Increase of 12% to 15% to Group sales Increase at a mid-single-digit +15% (+18% FX adj.) EUR 3,651 million EUR 4.1 billion to percentage rate to EUR 4.2 billion EU
Slide 71: Sales and Earnings Development of Business Segments in 2023
PAGE 71 SALES AND EARNINGS DEVELOPMENT OF THE BUSINESS SEGMENTS IN 2023 © 2022 HUGO BOSS
Slide 72: Sales by Brand
PAGE 72 SALES BY BRAND 2023 BOSS BOSS HUGO MENSWEAR WOMENSWEAR 78% 7% 16% of Sales of Sales of Sales 3,256 EUR MILLION 288 EUR MILLION 653 EUR MILLION © 2022 HUGO BOSS
Slide 73: Global Market Presence
PAGE 73 HUGO BOSS GLOBAL MARKET PRESENCE AMERICAS EMEA ASIA/PACIFIC 23% 61% 14% of Sales of Sales of Sales 955 EUR million Sales 2,562 EUR million Sales 576 EUR million Sales ~1,900 Points of sale ~5,300 Points of sale ~600 Points of sale 115 Freestanding retail stores 162 Freestanding retail stores
Slide 74: Distribution Channels
PAGE 74 DISTRIBUTION CHANNELS © 2022 HUGO BOSS
Slide 75: Sales by Distribution Channel
PAGE 75 SALES BY DISTRIBUTION CHANNEL © 2022 HUGO BOSS
Slide 76: Retail Store Network
PAGE 76 RETAIL STORE NETWORK 1,418 TOTAL INCLUDING FREE- NUMBER OF STANDING STORES, RETAIL POINTS SHOP-IN-SHOPS AND OF SALE OUTLETS © 2022 HUGO BOSS
Slide 77: Sourcing Footprint
PAGE 77 SOURCING FOOTPRINT WELL BALANCED REGIONAL SOURCING & PRODUCTION MIX REGIONALLY BALANCED OWN PRODUCTION COMPLEMENTS STRATEGIC SOURCING MIX THIRD-PARTY SOURCING ACTIVITIES 15% Izmir, Turkey (Largest single Americas External Sourcing Own Production source of production) EMEA Asia 2% 83% 17% 52%
Slide 78: Strong Organizational Set-Up
PAGE 78 STRONG ORGANIZATIONAL SET-UP EMPLOYEES IN MANAGEMENT (2023) EMPLOYEE SATISFACTION 77% CONDUCTED ANNUALLY WITH GREAT PLACE TO WORK® GERMANY © 2022 HUGO BOSS
Slide 79: Compensation System
PAGE 79 COMPENSATION SYSTEM STRONGLY SUPPORTING LONG-TERM TARGETS STI LTI Components Short-term variable compensation Long-term variable compensation Performance EBIT SALES Trade net Relative Return on Employee Perfor- Targets working total capital satisfaction mance in capital shareholder employed
Slide 80: Overproportionate Increase in Dividend
PAGE 80 OVERPROPORTIONATE INCREASE IN DIVIDEND COMPARED TO NET INCOME DEVELOPMENT 60% +35% DIVIDEND PAYOUT RATIO 50% 30 % EUR PAYOUT RATIO 40% 1.35 36% EUR EUR 1.00 35% 33% 30% 0.70 1.00 EUR 20% EUR EUR 2021 2022 2023 2024E 2025E 0.04 0.04 2019 2020 2021 2022 2023 2 2 DIVIDEND PER SHARE 1 Due to the
Slide 81: Condensed Statement of Financial Position
PAGE 81 CONDENSED STATEMENT OF FINANCIAL POSITION (IN EUR MILLION) Assets December 31, December 31, 2023 2022 Property, plant, and equipment, intangible assets, right-of-use assets 1,521 1,356 Inventories 1,066 974 Trade receivables 376 256 Other assets 363 393 Cash and cash equivalents 118 147 Asse
Slide 82: Multi-Year Overview Sales
PAGE 82 MULTI-YEAR-OVERVIEW SALES 2023 2022 2021 2020 2019 2018 2017 Sales (in EUR million) 4,197 3,651 2,786 1,946 2,884 2,796 2,733 Sales by brand BOSS Menswear 3,256 2,868 2,181 1,530 2,488 2,422 2,336 BOSS Womenswear 288 239 192 131 HUGO 653 545 413 285 396 374 397 Sales by segments EMEA 2,562 2
Slide 83: Multi-Year Overview P&L, Balance Sheet and Key Figures
PAGE 83 MULTI-YEAR-OVERVIEW P&L, BALANCE SHEET AND OTHER KEY FIGURES 2023 2022 2021 2020 2019 2018 2017 Results of operations (in EUR million) Gross profit 2,581 2,256 1,721 1,187 1,875 1,823 1,808 Gross margin in % 61.5 61.8 61.8 61.0 65.0 65.2 66.2 EBIT 410 335 228 (236) 344 347 341 EBIT margin in
Slide 84: Our Share
PAGE 84 I OUR SHARE AS OF SEPTEMBER 30, 2024 © 2022 HUGO BOSS
Slide 85: Share Price Performance YTD 2024
PAGE 85 SHARE PRICE PERFORMANCE YTD 2024 UNTIL SEPTEMBER 30, 2024 120 100 80 60 40 JAN FEB MAR APR MAY JUN JUL AUG SEP HUGO BOSS DAX MDAX Core Peers Core Peers: Burberry Group plc, Capri Holdings Ltd., G-III Apparel Group, Guess Inc., Levi Strauss & Co., Moncler Group, PVH Corp., Ralph Lauren Corp.,
Slide 86: Shareholder Structure
PAGE 86 SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE INSTITUTIONAL INVESTORS AS OF SEPTEMBER 30, 2024 (FREE FLOAT) BY REGION (IN % OF SHARE CAPITAL) AS OF SEPTEMBER 30, 2024 (IN %) PFC S.r.l./Zignago Own shares Free float Rest of World ~43,000 Holding S.p.A. 15% 2% 83% 13% TOTAL NUMBER OF North SHARE
Slide 87: Forward-Looking Statements Contain Risks
FORWARD-LOOKING STATEMENTS CONTAIN RISKS This document contains forward-looking statements that reflect management's current views with respect to future events. The words and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties. If any of t