Slide 1: HUGO BOSS
HUGO BOSS
Slide 2: Second Quarter Results 2018
Second Quarter Results 2018 Metzingen – August 2, 2018 HUGO BOSS ©
Slide 3: HUGO BOSS records robust sales growth in the second quarter
HUGO BOSS records robust sales growth in the second quarter Group sales (in EUR million) +6% fx-adjusted +3% 636 653 Q2 2017 Q2 2018 HUGO BOSS Second Quarter Results 2018 HUGO BOSS © August 2, 2018 4
Slide 4: Strong momentum in own retail continues
Strong momentum in own retail continues Comp store sales growth Retail sales (fx-adjusted) (in EUR million) +5% +5% fx-adjusted 8 7 7 +1% 6 5 5 436 442 4 3 2 0 -2 (3) (3) -4 (6) -6 (8) -8 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2017 2017 2017 2017 2018 2018 Q2 2017 Q2 2018 HUGO BOSS Second Quarter
Slide 5: Online business continues to grow at a strong double-digit rate
Online business continues to grow at a strong double-digit rate HUGO BOSS Second Quarter Results 2018 HUGO BOSS © August 2, 2018 6
Slide 6: New BOSS store concept improves in-store experience
New BOSS store concept improves in-store experience BOSS Store Munich, Germany HUGO BOSS Second Quarter Results 2018 HUGO BOSS © August 2, 2018 7
Slide 7: First HUGO store with new store concept opened
First HUGO store with new store concept opened HUGO Store Amsterdam, Netherlands HUGO BOSS Second Quarter Results 2018 HUGO BOSS © August 2, 2018 8
Slide 8: Wholesale revenues supported by strong replenishment business and delivery shifts
Wholesale revenues supported by strong replenishment business and delivery shifts Wholesale sales (in EUR million) ■ Double-digit sales increases in Europe supported by strong +10% fx-adjusted replenishment business and delivery shifts ■ Mid-single digit sales declines in the Americas reflect challe
Slide 9: License business negatively impacted by timing effects
License business negatively impacted by timing effects License sales (in EUR million) (6)% fx-adjusted (6)% 18 17 Q2 2017 Q2 2018 HUGO BOSS Second Quarter Results 2018 HUGO BOSS © August 2, 2018 10
Slide 10: BOSS and HUGO benefit from trend towards casualization
BOSS and HUGO benefit from trend towards casualization ■ Collection upgrade drives growth +8% fx-adjusted (4)% fx-adjusted at both BOSS Casualwear and Businesswear +4% ■ Strategic distribution changes continue to impact HUGO sales 568 545 ■ Menswear sales up 7%; womenswear sales down 2% due to reduc
Slide 11: Fashion show in Berlin creates buzz for HUGO
Fashion show in Berlin creates buzz for HUGO HUGO BOSS Second Quarter Results 2018 HUGO BOSS © August 2, 2018 12
Slide 12: Strong sales growth in Europe continues
Strong sales growth in Europe continues Europe sales (in EUR million) ■ Sales in the UK up 12% on a currency-adjusted basis +9% fx-adjusted ■ Sales in the Benelux markets and France increase 11% and 5%, respectively +7% ■ Business in Germany returns to growth, with sales up 2% 399 372 Q2 2017 Q2 201
Slide 13: Sales in the Americas remain broadly unchanged
Sales in the Americas remain broadly unchanged Americas sales (in EUR million) ■ U.S. business down 1% on a currency-adjusted basis, 0% fx-adjusted reflecting sales declines in the wholesale channel ■ U.S. own retail sales increase 2%, supported by low single (8)% digit comp store sales growth 148 1
Slide 14: Broad-based sales growth in Asia/Pacific continues
Broad-based sales growth in Asia/Pacific continues Asia/Pacific sales (in EUR million) ■ Sales in China increase 8% on a currency-adjusted basis +7% fx-adjusted ■ Mainland China records high single digit growth, supported by ongoing strong local demand +2% ■ Business in Hong Kong and Macau continues
Slide 15: Gross margin negatively impacted by channel mix effect
Gross margin negatively impacted by channel mix effect Gross margin EBIT (80)bp (8)% 66.9 % 74 EUR million Selling & distribution EBITDA (before special items) expenses 289 EUR million +1% 106 EUR million (1)% Administration expenses Net income 73 EUR million +7% 54 EUR million (7)% HUGO BOSS Second
Slide 16: FX effects weigh on margins in the Americas and Asia/Pacific
FX effects weigh on margins in the Americas and Asia/Pacific Europe Americas Asia/Pacific (in %) (in %) (in %) +280 bp (700) bp (110) bp 31.4 28.6 24.0 23.3 22.2 17.0 *Incl. Middle East and Africa. Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 HUGO BOSS Second Quarter Results 2018 HUGO BOSS © Augu
Slide 17: Half-year sales and earnings in line with full-year guidance
Half-year sales and earnings in line with full-year guidance Group sales* (H1 2018) Sales by region* (H1 2018) +5 % +6 % 1,303 EUR million +1% reported Europe +4% reported EBITDA (before special items) 0 +3 % 205 EUR million % Americas (7)% reported Net income +9 % 103 EUR million (2) % Asia/Pacific
Slide 18: Elevated inventory levels weigh on trade net working capital
Elevated inventory levels weigh on trade net working capital Inventories Average trade net working capital (in EUR million) as percentage of sales (in %) ■ Inventory levels expected to +13% normalize during the remainder +16% fx-adjusted (40) bp of 2018 615 19.2 ■ Trade net working capital up 12% 18
Slide 19: Working capital build-up temporarily affects free cash flow development
Working capital build-up temporarily affects free cash flow development Capital expenditure Free cash flow (in EUR million) (in EUR million) ■ Decline in capex due to phasing effects and fewer store openings (10)% (76)% ■ Working capital increase weighs 132 on free cash flow generation ■ Free cash f
Slide 20: Outlook 2018 confirmed
Outlook 2018 confirmed Group sales Consolidated net income Increase at a low to mid-single digit Increase at a low to mid-single digit percentage rate (fx-adjusted) percentage rate Gross profit margin Capital expenditure Largely stable EUR 170 million to EUR 190 million EBITDA (before special items)
Slide 21: Further progress in strategy execution
Further progress in strategy execution The refocusing of BOSS and HUGO Broad-based salesstrong increase Brandhas generated positioning initial successfully results realigned marks good start to 2018 Realigning brand portfolio successfully completed Investments into brands and organization Investing
Slide 22: Investor Day 2018 in London
Investor Day 2018 in London (Andaz Hotel, 40 Liverpool Street) 15 15 November November HUGO BOSS Second Quarter Results 2018 HUGO BOSS © August 2, 2018 23
Slide 23: Q&A
Q&A HUGO BOSS ©
Slide 24: 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 “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “project”, “should”, and similar expressions i
Slide 25: HUGO BOSS
HUGO BOSS