Hugo Boss Ag · XETR:BOSS

Hugo Boss — FY2022 Earnings Presentation

40 slides from Hugo Boss's earnings presentation, Mar 9, 2023

  1. Slide 1: © 2022 HUGO BOSS

    © 2022 HUGO BOSS

  2. Slide 2: Full Year 2022 Results

    FULL YEAR 2022 RESULTS I © 2022 HUGO BOSS

  3. Slide 3: Agenda

    01 02 FY 2022 RESULTS 03 OUTLOOK FY 2023 04 Q&A © 2022 HUGO BOSS

  4. Slide 4: Update on Strategy (Daniel Grieder, CEO)

    FULL YEAR 2022 RESULTS PAGE 4 UPDATE ON DANIEL GRIEDER, CEO © 2022 HUGO BOSS

  5. Slide 5: A Record Year for HUGO BOSS

    CIRCLE 1 OFFSITE FULL YEAR 2022 RESULTS PAGE PAGE55 2022 A RECORD YEAR FOR HUGO BOSS © 2022 HUGO BOSS

  6. Slide 6: Relentless Drives Sales and Profit Growth

    FULL YEAR 2022 RESULTS PAGE 6 RELENTLESS DRIVES SALES AND PROFIT GROWTH Successful Record Strong expansion of sales bottom-line market shares achieved improvements EUR EUR billion million © 2022 HUGO BOSS

  7. Slide 7: Ushering in a New Era with Comprehensive Brand Refresh

    FULL YEAR 2022 RESULTS PAGE 7 USHERING IN A NEW ERA WITH COMPREHENSIVE BRAND REFRESH HUGO HU GO HUGO HUGO HU BOSS GO HUGO BOSS HUGO HU BOSS GO HUGO © 2022 HUGO BOSS

  8. Slide 8: Exciting Brand Events Create Strong Buzz

    FULL YEAR 2022 RESULTS PAGE 8 EXCITING BRAND EVENTS CREATE STRONG BUZZ January 2022 February 2022 HAHNENKAMM RACE DUBAI FASHION SHOW April 2022 HUGO HOUSE July 2022 September 2022 September 2022 FORMULA 1 MILAN FASHION SHOW MILAN FASHION SHOW © 2022 HUGO BOSS

  9. Slide 9: Marketing Investments Accelerate Brand Heat on Social Media

    FULL YEAR 2022 RESULTS PAGE 9 MARKETING INVESTMENTS ACCELERATE BRAND HEAT ON SOCIAL MEDIA ENGAGEMENT RATES for BOSS and HUGO up triple-digits BOSS HUGO ~1.5 million +900% new followers follower growth on Instagram on TikTok © 2022 HUGO BOSS

  10. Slide 10: Brand Refresh Leads to Double-Digit Growth Across Brands

    FULL YEAR 2022 RESULTS PAGE 10 BRAND REFRESH LEADS TO DOUBLE-DIGIT GROWTH ACROSS BRANDS BOSS +27% * +27% * VS FY 2021 MENSWEAR VS FY 2021 HUGO +21% * VS FY 2021 WOMENSWEAR © 2022 HUGO BOSS *Currency-adjusted

  11. Slide 11: Spring/Summer 2023 Campaigns to Foster Regained Brand Momentum

    FULL YEAR 2022 RESULTS PAGE 11 SPRING/SUMMER 2023 CAMPAIGNS TO FOSTER REGAINED BRAND MOMENTUM © 2022 HUGO BOSS

  12. Slide 12: Lifestyle Image Successfully Implemented

    FULL YEAR 2022 RESULTS PAGE 12 24/7 LIFESTYLE IMAGE SUCCESSFULLY IMPLEMENTED Strong and diverse Introduction Grasp opportunities product mix of brand lines for product categories © 2022 HUGO BOSS

  13. Slide 13: BOSS Teams Up with Other Bosses

    FULL YEAR 2022 RESULTS PAGE 13 BOSS TEAMS UP WITH OTHER BOSSES KEY COLLABORATIONS BOSS X BOSS X BOSS X X BOSS © 2022 HUGO BOSS

  14. Slide 14: HUGO with Strong Focus on Gen Z

    FULL YEAR 2022 RESULTS PAGE 14 HUGO WITH STRONG FOCUS ON GEN Z KEY COLLABORATIONS © 2022 HUGO BOSS

  15. Slide 15: Leveraging the Power of Data to Lead in Digital

    FULL YEAR 2022 RESULTS PAGE 15 LEVERAGING THE POWER OF DATA TO LEAD IN DIGITAL I HUGO BOSS DIGITAL CAMPUS MAXIMIZES THE USE OF DATA ANALYTICS © 2022 HUGO BOSS

  16. Slide 16: Further Progress in Providing Best-in-Class Omnichannel Experience

    FULL YEAR 2022 RESULTS PAGE 16 FURTHER PROGRESS IN PROVIDING BEST-IN-CLASS OMNICHANNEL EXPERIENCE I ENHANCED SHOPPING EXPERIENCE NEW DIGITAL FEATURES © 2022 HUGO BOSS

  17. Slide 17: Expansion of New Store Concept in Full Swing

    FULL YEAR 2022 RESULTS PAGE 17 EXPANSION OF NEW STORE CONCEPT IN FULL SWING POS REFRESHED AT THE END OF 2022 KUALA LUMPUR VIENNA LONDON © 2022 HUGO BOSS

  18. Slide 18: Reclaiming Wholesale Through Improved Brand Positioning

    FULL YEAR 2022 RESULTS PAGE 18 RECLAIMING WHOLESALE THROUGH IMPROVED BRAND POSITIONING 24/7-lifestyle Visibility & Robust positioning penetration order intake successfully of BOSS and from wholesale fostered with HUGO strongly partners underpins key partners improved success of collections © 2022 HU

  19. Slide 19: Sustainability as Integral Part of Our Business Activities

    FULL YEAR 2022 RESULTS PAGE 19 SUSTAINABILITY AS INTEGRAL PART OF OUR BUSINESS ACTIVITIES IN FULL SWING RENEWED INCLUSION IN DJSI WORLD AND EUROPE 6TH TIME IN A ROW 2ND BEST SCORE in the textile, apparel, and luxury segments WORLD © 2022 HUGO BOSS

  20. Slide 20: Strong Commitment to Climate Action and Circularity

    FULL YEAR 2022 RESULTS PAGE 20 STRONG COMMITMENT TO CLIMATE ACTION AND CIRCULARITY DURABILITY RECYCLABLE 80% CIRCULAR PRODUCTS HIGH QUALITY BY 2030 © 2022 HUGO BOSS

  21. Slide 21: 2022 All About the Powerful Execution

    FULL YEAR 2022 RESULTS PAGE 21 2022 ALL ABOUT THE POWERFUL EXECUTION © 2022 HUGO BOSS

  22. Slide 22: Full Year 2022 Results: Financial Review (Yves Müller, CFO/COO)

    FULL YEAR 2022 RESULTS PAGE 22 FULL YEAR 2022 RESULTS FINANCIAL REVIEW YVES MÜLLER, CFO/COO © 2022 HUGO BOSS

  23. Slide 23: 2022 Results Exceed Top- and Bottom-Line Guidance

    FULL YEAR 2022 RESULTS PAGE 23 2022 RESULTS EXCEED TOP- AND BOTTOM-LINE GUIDANCE GROUP SALES 3,651 +27 %* EUR MILLION VS FY 2021 EBIT 335 +47 % EUR MILLION VS FY 2021 © 2022 HUGO BOSS *Currency-adjusted

  24. Slide 24: Spurs Top-Line Momentum

    FULL YEAR 2022 RESULTS PAGE 24 SPURS TOP-LINE MOMENTUM GROUP SALES DEVELOPMENT* VS 2019 LEVELS ( 29% 29% 27% 17% 12% 7% Q3 Q4 Q1 Q2 Q3 Q4 2021 2021 2022 2022 2022 2022 © 2022 HUGO BOSS *Currency-adjusted

  25. Slide 25: Broad-Based Momentum Across All Regions

    FULL YEAR 2022 RESULTS PAGE 25 BROAD-BASED MOMENTUM ACROSS ALL REGIONS AMERICAS EMEA ASIA/PACIFIC +29%* +32%* +6%* *Currency-adjusted VS FY 2021 VS FY 2021 VS FY 2021 Broad-based momentum Double-digit increases in key Strong double-digit growth with double-digit growth markets such as the UK, outsid

  26. Slide 26: Double-Digit Growth Across All Consumer Touchpoints

    FULL YEAR 2022 RESULTS PAGE 26 DOUBLE-DIGIT GROWTH ACROSS ALL CONSUMER TOUCHPOINTS RETAIL WHOLESALE DIGITAL +29%* VS FY 2021 +33%* VS FY 2021 +15%* VS FY 2021 Optimization of store Robust demand from Double-digit growth of network and wholesale partners hugoboss.com and productivity enhances visibil

  27. Slide 27: Strong Improvements in Full-Price Sales Offset by External Headwinds

    FULL YEAR 2022 RESULTS PAGE 27 STRONG IMPROVEMENTS IN FULL-PRICE SALES OFFSET BY EXTERNAL HEADWINDS Sourcing & Channel & FY 2021 Full price Pricing freight cost FX regional mix FY 2022 61.8% 61.8% © 2022 HUGO BOSS

  28. Slide 28: Step-Up in Brand and Digital Investments

    FULL YEAR 2022 RESULTS PAGE 28 STEP-UP IN BRAND AND DIGITAL INVESTMENTS +41 % 7.9 % +15 % 5.2 % MARKETING OF GROUP SALES DIGITAL OF GROUP SALES INVESTMENTS INVESTMENTS VS FY 2021 VS FY 2021 © 2022 HUGO BOSS

  29. Slide 29: Strong Bottom-Line Improvements Despite Ongoing Investments

    FULL YEAR 2022 RESULTS PAGE 29 STRONG BOTTOM-LINE IMPROVEMENTS DESPITE ONGOING INVESTMENTS FY 2022 CHANGE GROSS MARGIN 61.8% 0 BP INCREASE IN FULL-PRICE SALES OFFSET BY EXTERNAL FACTORS OPERATING EXPENSES (IN % OF SALES) 52.6% IMPROVEMENT DRIVEN BY STRONG LEVERAGE IN B&M RETAIL COSTS (100) BP EBIT 3

  30. Slide 30: Increase in Inventories to Support Future Top-Line Growth

    FULL YEAR 2022 RESULTS PAGE 30 INCREASE IN INVENTORIES TO SUPPORT FUTURE TOP-LINE GROWTH INVENTORY DEVELOPMENT IN EUR MILLION Inventory position has been stable and comparatively low in previous years 974 +58%* Intentional increase in inventory coverage to 606 mitigate supply chain risks Measures im

  31. Slide 31: Significant Improvement in TNWC in % of Sales

    FULL YEAR 2022 RESULTS PAGE 31 SIGNIFICANT IMPROVEMENT IN TNWC IN % OF SALES TNWC in % of sales (220) BP 28.7 TNWC up 61%* with higher inventories more than offsetting a 31% increase in trade payables 20.1 17.2 TNWC as a % of sales below 15.0 of 16% to 19% Improvement in TNWC as a % of sales driven

  32. Slide 32: FCF Development Impacted by Increase in Inventories and Higher Capex

    FULL YEAR 2022 RESULTS PAGE 32 FCF DEVELOPMENT IMPACTED BY INCREASE IN INVENTORIES AND HIGHER CAPEX FY 2022 FY 2022 FY 2022 TNWC CAPITAL FREE CASH EXPENDITURE FLOW 613 EUR MILLION 191 EUR MILLION 166 EUR MILLION +63% +84% (70)% Higher inventory position Step-up reflects ongoing Strong reacceleration

  33. Slide 33: Dividend Increase Broadly in Line with Profitability Improvements

    FULL YEAR 2022 RESULTS PAGE 33 DIVIDEND INCREASE BROADLY IN LINE WITH STRONG PROFITABILITY IMPROVEMENTS IN 2022 +43% 60% EUR DIVIDEND PAYOUT RATIO 50% 1.00 EUR 30 % 40% 0.70 PAYOUT RATIO 35% 33% 30% 1.00 EUR 20% 2021 2022* DIVIDEND PER SHARE 2021 2022* 2023e 2024e 2025e © 2022 HUGO BOSS *DIVIDEND PR

  34. Slide 34: Outlook 2023

    FULL YEAR 2022 RESULTS PAGE 34 OUTLOOK 2023 © 2022 HUGO BOSS

  35. Slide 35: 2023 to Be a Further Important Milestone in Achieving 2025 Ambition

    FULL YEAR 2022 RESULTS PAGE 35 2023 TO BE A FURTHER IMPORTANT MILESTONE IN ACHIEVING 2025 AMBITION Macroeconomic and geopolitical uncertainties likely to persist in 2023 Relentless execution of key strategic initiatives remains top priority to foster brand momentum Ongoing commitment to further inve

  36. Slide 36: Sales Outlook

    FULL YEAR 2022 RESULTS PAGE 36 SALES OUTLOOK +4% TO +6% Building on regained brand power to drive top-line momentum and outperform industry growth 3.8 TO 3.9 EUR BILLION Broad-based sales increases 3.7 2023E expected across all brands, channels, EUR BILLION and regions 2022 © 2022 HUGO BOSS

  37. Slide 37: EBIT Outlook

    FULL YEAR 2022 RESULTS PAGE 37 EBIT OUTLOOK +5% TO +12% Projected top-line growth to further support robust bottom-line improvement in 2023 350 TO 375 Efficiency gains to compensate for EUR MILLION ongoing investments into brands, products, and digital expertise 335 2023E EUR MILLION 2022 © 2022 HUG

  38. Slide 38: Another Successful Year for HUGO BOSS

    FULL YEAR 2022 RESULTS PAGE 38 2023 ANOTHER SUCCESSFUL YEAR FOR HUGO BOSS © 2022 HUGO BOSS

  39. Slide 39: Q&A

    Q&A © 2022 HUGO BOSS

  40. Slide 40: 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

Hugo Boss — FY2022 Earnings Presentation on 6ix