Hugo Boss Ag · XETR:BOSS

Hugo Boss — Investor Presentation (August 2024)

90 slides from Hugo Boss's investor presentation, Aug 1, 2024

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 and create true hero products ▪ Partner up
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: 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: Trend Analytics with Data Insights 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: 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: Retail, Wholesale, Digital Channel Ambitions
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: Customer Loyalty Program HUGO BOSS XP
FULL YEAR 2022 RESULTS PAGE 35 HUGO BOSS LAUNCHES INNOVATIVE CUSTOMER LOYALTY PROGRAM +30% ~9.5M SUCCESSFUL LAUNCH OF HUGO BOSS XP IN H1 2024 YOY MEMBER GROWTH TOTAL MEMBER BASE FURTHER ROLLOUT IN AS OF JUNE 30, 2024 AS OF JUNE 30, 2024 H2 2024 AND BEYOND © 2022 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 the 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: Nearshoring to Align Sourcing with Sales Markets
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% CURRENT 52% CURRENT 46% CURRENT SALES BY REGION (2023) 23%
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: Five Strategic Sustainability Pillars
FUTURE PAGE 46 FUTURE OUR STRATEGY IS ANCHORED IN THESE CORE PRINCIPLES FUTURE OUR 5 STRATEGIC SUSTAINABILITY PILLARS FUTURE 1 2 3 4 5 FUTURE FUTURE INCREASE CIRCULARITY DRIVE DIGITIZATION & DATA ANALYTICS LEVERAGE NATURE POSITIVE MATERIALS FIGHT MICROPLASTICS PUSH ZERO EMISSIONS FUTURE A STRONG ENV
Slide 47: Dedicated Goal Behind Each Strategic Pillar
FUTURE PAGE 47 FUTURE THERE IS A DEDICATED GOAL BEHIND EACH STRATEGIC PILLAR FUTURE OUR 5 STRATEGIC SUSTAINABILITY PILLARS FUTURE FUTURE FUTURE 80% 90% CIRCULAR products products 100% natural materials 0% polyester & nylon -50% CO2 FUTURE by 2030 will be developed according to by 2030 emissions digi
Slide 48: Strategic Pillars Backed by Strong ESG Basis
PAGE 48 FUTURE FUTURE OUR 5 STRATEGIC PILLARS FUTURE ARE BACKED BY A STRONG ESG-BASIS FUTURE HUMAN RIGHTS & EMPLOYEE ANIMAL ENVIRONMENTAL PACKAGING SOCIAL COMPLIANCE DEVELOPMENT WELFARE COMPLIANCE STANDARDS • The upholding of human • We offer our employees • HUGO BOSS adheres to • We have comprehens
Slide 50: Market Environment Further Deteriorates in Second Quarter
PAGE 50 MARKET ENVIRONMENT FURTHER DETERIORATES IN SECOND QUARTER Macroeconomic and geopolitical challenges weigh on global consumer sentiment Slowdown in sector development continues during the second quarter Retail sentiment particularly challenging in key markets such as China and the UK © 2022 H
Slide 51: Q2 Performance Impacted by Market Uncertainty
PAGE 51 PERFORMANCE IN SECOND QUARTER IMPACTED BY OVERALL MARKET UNCERTAINTY GROUP SALES EBIT AS PRE-RELEASED ON JULY 15 AS PRE-RELEASED ON JULY 15 1,015 70 EUR MILLION EUR MILLION VS. Q2 2023 VS. Q2 2023 (1)% (42)% IN GROUP CURRENCY & CURRENCY-ADJUSTED © 2022 HUGO BOSS
Slide 52: Ongoing Brand Strength
PAGE 52 ONGOING BRAND STRENGTH SUPPORTED BY RELENTLESS STRONG RELATIVE SUCCESSFUL BOOST TO OUTPERFOR- EXPANSION OF BRAND MANCE DRIVES FOLLOWERS RELEVANCE MARKET AND MEMBER FOR BOSS SHARE GAINS BASE AND HUGO © 2022 HUGO BOSS
Slide 53: Ongoing Relative Outperformance
PAGE 53 LEADS TO ONGOING RELATIVE OUTPERFORMANCE HUGO BOSS GROUP SALES PEER GROUP AVERAGE DEVELOPMENT VS. Q2 2023 Q2 GROUP SALES (1)% DEVELOPMENT VS. Q2 2023 (4)%* Q2 *Weighted average based on actual results and Bloomberg consensus as of August 1; Peer Group consists of Burberry, Capri, G-III Appar
Slide 54: Q2 Revenues Exceed 2019 Levels
PAGE 54 HUGO BOSS Q2 REVENUES CONTINUE TO SIGNIFICANTLY EXCEED 2019 LEVELS SUCCESSFUL EXECUTION OF +51% Q2 Q4 2021 Q1 2022 Q2 2022 Q3 2022 CURRENCY-ADJUSTED GROUP SALES DEVELOPMENT IN % VS. 2019 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 Q2 Q2 2024 2024
Slide 55: H1 Group Sales Up 3% Currency-Adjusted
FULL YEAR 2022 RESULTS PAGE 55 H1 GROUP SALES UP 3% CURRENCY-ADJUSTED DESPITE PREVAILING MARKET CONDITIONS BRANDS REGIONS CHANNELS BOSS MENSWEAR +2% EMEA +1% B&M RETAIL 0% BOSS WOMENSWEAR +4% AMERICAS +8% B&M WHOLESALE +7% HUGO +6% ASIA/PACIFIC 0% DIGITAL +3% LICENSES +3% GROWTH TRAJECTORY IN B&M BR
Slide 56: Revenue Performance Across Brands in Q2
PAGE 56 MUTED CONSUMER SENTIMENT WEIGHS ON REVENUE PERFORMANCE ACROSS BRANDS IN Q2 (2)% * +2% * +3%* *CURRENCY-ADJUSTED VS. Q2 2023 VS. Q2 2023 VS. Q2 2023 BOSS BOSS HUGO MENSWEAR WOMENSWEAR © 2022 HUGO BOSS
Slide 57: Growth in the Americas Offsets EMEA and Asia/Pacific
PAGE 57 GROWTH IN THE AMERICAS LARGELY COMPENSATES FOR SOFTNESS IN EMEA AND ASIA/PACIFIC IN Q2 AMERICAS EMEA ASIA/PACIFIC +5% * (2)% * (4)% * VS. Q2 2023 VS. Q2 2023 VS. Q2 2023 Slowdown in sector development Muted local demand weighs on *CURRENCY-ADJUSTED successful 24/7 lifestyle images continues
Slide 58: Lower Store Traffic Weighs on B&M Retail
PAGE 58 LOWER STORE TRAFFIC WEIGHS ON B&M RETAIL PERFORMANCE IN Q2 B&M RETAIL B&M WHOLESALE DIGITAL (2)% VS. Q2 2023 * +5% VS. Q2 2023 * (4)% VS. Q2 2023 * *CURRENCY-ADJUSTED Increase in conversion rates Performance reflects robust Revenue improvements at more than offset by demand from partners for
Slide 59: Market Uncertainty and Higher Opex Weigh on Bottom Line
PAGE 59 OVERALL MARKET UNCERTAINTY AND HIGHER OPERATING EXPENSES WEIGH ON BOTTOM-LINE PERFORMANCE Q2 2024 CHANGE H1 2024 CHANGE GROSS MARGIN 62.9% +50 BP 62.1% +30 BP OPERATING EXPENSES (IN % OF SALES) 55.9% +540 BP 55.3% +270 BP EBIT 70 (42)% 139 (25)% EUR MILLION EUR MILLION EBIT MARGIN 6.9% (490)
Slide 60: Optimizing Inventory Position
PAGE 60 FURTHER PROGRESS IN OPTIMIZING INVENTORY POSITION INVENTORY DEVELOPMENT 1,154 INVENTORIES IN % OF SALES 1,129 INVENTORIES IN EUR MILLION Inventories decline 7% 1,066 1,054 currency-adjusted year over year 1,034 28.3% 28.2% Inventories as a percentage of sales well below prior-year level 25.4
Slide 61: Inventory Optimization Supports TNWC and Free Cash Flow
PAGE 61 OPTIMIZATION IN INVENTORIES TO FURTHER SUPPORT TNWC AND FREE CASH FLOW GENERATION TRADE NET CAPITAL FREECASH FREE CASH WORKING CAPITAL EXPENDITURE FLOW FLOW APPROACHING 20% 21.2% OF SALES ~300 122 EUR MILLION 13 ~500 EUR MILLION 156 EUR MILLION OF SALES EUR MILLION >100% EUR MILLION DEC. 31,
Slide 63: 2024 Sales Outlook
PAGE 63 2024 SALES* OUTLOOK Full-year 2024 outlook adjusted to account for ongoing macroeconomic uncertainties +1% TO +4% HUGO BOSS confident to maintain IN GROUP CURRENCY relative outperformance in fiscal year 2024 Solid order intake and more favorable comparison base to support H2 top-line develop
Slide 64: Brand and Product Initiatives in H2 2024
PAGE 64 SEVERAL BRAND AND PRODUCT INITIATIVES TO TAKE PLACE IN H2 2024 WINTER 2024 FASHION PARTNERSHIP WITH PRODUCT BOSS CAMPAIGN EVENTS DAVID BECKHAM INNOVATION © 2022 HUGO BOSS
Slide 65: 2024 EBIT Outlook
PAGE 65 2024 EBIT * OUTLOOK Full-year 2024 outlook adjusted, taking into account the overall market uncertainty -15% TO +5% Important cost measures implemented in H1/24 to support profitability going forward 350- Bottom-line performance to accelerate in H2/24, due to stronger focus on operational an
Slide 66: Sourcing Efficiency Gains and Gross Margin
PAGE 66 CAPITALIZING ON OPERATIONAL PLATFORM TO REALIZE FURTHER SOURCING EFFICIENCY GAINS H1 H2 FY +30 bp >+50 bp SEQUENTIAL ACCELERATION 61.9% 62.1% IN H2/24 DUE TO FURTHER 61.5% >62.0% SOURCING EFFICIENCIES AND LOWER PRODUCT COSTS H1 2023 H1 2024 FY 2023 FY 2024E HUGO BOSS records robust Gross mar
Slide 67: Accelerating Cost Discipline
PAGE 67 ACCELERATING OUR COST DISCIPLINE AGAINST ONGOING VOLATILE MACRO ENVIRONMENT H1 H2 FY +1% +7% TO +3% EXECUTION OF 1,047 1,121 1,123 COST MEASURES TO EUR MILLION EUR MILLION EUR MILLION MITIGATE INCREASE IN OPEX IN FISCAL YEAR 2024 H1 2023 H1 2024 H2 2023 H2 2024E Increase primarily reflects h
Slide 68: Cost Measures to Mitigate Opex Increase
PAGE 68 SEVERAL COST MEASURES IMPLEMENTED TO MITIGATE INCREASE IN OPERATING EXPENSES Measures to enhance OPTIMIZATION INCREASE IN OPTIMIZATION efficiency and effectiveness OF B&M RETAIL MARKETING OF GENERAL implemented during the EFFICIENCY EFFECTIVENESS ADMIN COSTS course of H1/24 e.g. aligning cos
Slide 69: Outlook for Fiscal Year 2024
PAGE 69 OUTLOOK FOR FISCAL YEAR 2024 Results 2023 Initial outlook 2024 New outlook 20241 Increase within a range of 1% to 4% to Group sales EUR 4,197 million Increase within a range of 3% to 6% between EUR 4.20 billion and EUR 4.35 billion Sales by region Increase in the low to mid single-digit Incr
Slide 70: Financial Calendar & Investor Relations Contact
PAGE 70 FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACT CHRISTIAN STÖHR SENIOR VICE PRESIDENT INVESTOR RELATIONS E-MAIL christian_stoehr@hugoboss.com NOVEMBER PHONE +49 7123 94 80903 5 THIRD QUARTER 2024 RESULTS CONTACT LENA BIBERACHER SENIOR INVESTOR RELATIONS MANAGER 2024 CHRISTIAN STÖHR E-MAIL le
Slide 72: Five Strong Reasons for an Investment in HUGO BOSS
PAGE 72 FIVE STRONG REASONS FOR AN INVESTMENT IN HUGO BOSS TWO STRONG BOSS and HUGO are two strong brands that are clearly distinguished by their fashionable style but 1 BRANDS meet the same high standards of quality and fit, innovation and sustainability. A 24/7 approach ensures that customers are
Slide 73: HUGO BOSS at a Glance
PAGE 73 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 74: Comparison of Actual and Forecast 2023 Performance
PAGE 74 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 75: Sales and Earnings Development of Business Segments in 2023
PAGE 75 SALES AND EARNINGS DEVELOPMENT OF THE BUSINESS SEGMENTS IN 2023 © 2022 HUGO BOSS
Slide 76: Sales by Brand
PAGE 76 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 77: Global Market Presence
PAGE 77 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 80: Retail Store Network
PAGE 80 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 81: Sourcing Footprint
PAGE 81 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 82: Strong Organizational Set-up
PAGE 82 STRONG ORGANIZATIONAL SET-UP EMPLOYEES IN MANAGEMENT (2023) EMPLOYEE SATISFACTION 77% CONDUCTED ANNUALLY WITH GREAT PLACE TO WORK® GERMANY © 2022 HUGO BOSS
Slide 83: Compensation System
PAGE 83 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 84: Share Price Performance in 2023
PAGE 84 SHARE PRICE PERFORMANCE IN 2023 1 Burberry Group plc, Capri Holdings Ltd., G-III Apparel Group, Guess Inc., Levi Strauss & Co., Moncler Group, PVH Corp., Ralph Lauren Corp., SMCP Group, Tapestry Inc., VF Corp. © 2022 HUGO BOSS
Slide 85: Overproportionate Increase in Dividend
PAGE 85 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 86: Shareholder Structure
PAGE 86 SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE INSTITUTIONAL INVESTORS AS OF JUNE 30, 2024 (FREE FLOAT) BY REGION (IN % OF SHARE CAPITAL) AS OF JUNE 30, 2024 (IN %) PFC S.r.l./Zignago Own shares Free float Rest of World ~43,000 Holding S.p.A. 15% 2% 83% Rest of 8% TOTAL NUMBER OF Europe North S
Slide 87: Condensed Statement of Financial Position
PAGE 87 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 88: Multi-Year Overview Sales
PAGE 88 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 89: Multi-Year Overview P&L, Balance Sheet and Key Figures
PAGE 89 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 90: 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 — Investor Presentation (August 2024) on 6ix

Hugo Boss — Investor Presentation (August 2024)

Slide 1: Investor Meeting Presentation

Slide 2: Agenda

Slide 3: Vision and Mission

Slide 4: Financial Ambition

Slide 5: Claim 5 Strategy

Slide 6: Boost Brands

Slide 7: Two Clearly Distinguished Brands

Slide 8: BOSS: Be Your Own Boss Lifestyle

Slide 9: HUGO: Your Way

Slide 10: Clearly Distinguished Marketing

Slide 11: Maximize Consumer Impact

Slide 12: Activation of Millennials and Gen Z via Social Media

Slide 13: Product Is Key

Slide 14: Brand Lines Reflect BOSS Menswear 24/7 Lifestyle Promise

Slide 15: Product Strategy BOSS Menswear

Slide 16: Brand Lines Reflect BOSS Womenswear 24/7 Lifestyle Promise

Slide 17: Product Strategy BOSS Womenswear

Slide 18: HUGO Celebrates 24H Self-Expression

Slide 19: Product Strategy HUGO

Slide 20: Two Brand Lines with Dedicated Styles

Slide 21: Global Licenses Business Extends 24/7 Lifestyle Promise

Slide 22: Lead in Digital

Slide 23: Developing Digital Capabilities

Slide 24: Trend Analytics with Data Insights and Generative AI

Slide 25: Digital Product Creation

Slide 26: Launch of the Digital Twin

Slide 27: Digital Innovation in Retail

Slide 28: Drive Omnichannel

Slide 29: Retail, Wholesale, Digital Channel Ambitions

Slide 30: Experiential in Retail

Slide 31: Increase Store Productivity

Slide 32: Win with the Winners in Wholesale

Slide 33: Exploit Potential of Global Franchise Business

Slide 34: Inspirational in Digital

Slide 35: Customer Loyalty Program HUGO BOSS XP

Slide 36: Leveraging Potential of hugoboss.com

Slide 37: Keep Growth Trajectory in the Americas

Slide 38: Exploit Growth Momentum in EMEA

Slide 39: Unleash the Full Potential in Asia/Pacific

Slide 40: Organize for Growth

Slide 41: Stepping Up Investments in Logistics Network

Slide 42: Expansion of Own Production Capacities in Izmir

Slide 43: Nearshoring to Align Sourcing with Sales Markets

Slide 44: Sustainable Throughout

Slide 45: Strong Achievements in Sustainability

Slide 46: Five Strategic Sustainability Pillars

Slide 47: Dedicated Goal Behind Each Strategic Pillar

Slide 48: Strategic Pillars Backed by Strong ESG Basis

Slide 49: Second Quarter 2024 Results

Slide 50: Market Environment Further Deteriorates in Second Quarter

Slide 51: Q2 Performance Impacted by Market Uncertainty

Slide 52: Ongoing Brand Strength

Slide 53: Ongoing Relative Outperformance

Slide 54: Q2 Revenues Exceed 2019 Levels

Slide 55: H1 Group Sales Up 3% Currency-Adjusted

Slide 56: Revenue Performance Across Brands in Q2

Slide 57: Growth in the Americas Offsets EMEA and Asia/Pacific

Slide 58: Lower Store Traffic Weighs on B&M Retail

Slide 59: Market Uncertainty and Higher Opex Weigh on Bottom Line

Slide 60: Optimizing Inventory Position

Slide 61: Inventory Optimization Supports TNWC and Free Cash Flow

Slide 62: Outlook 2024

Slide 63: 2024 Sales Outlook

Slide 64: Brand and Product Initiatives in H2 2024

Slide 65: 2024 EBIT Outlook

Slide 66: Sourcing Efficiency Gains and Gross Margin

Slide 67: Accelerating Cost Discipline

Slide 68: Cost Measures to Mitigate Opex Increase

Slide 69: Outlook for Fiscal Year 2024

Slide 70: Financial Calendar & Investor Relations Contact

Slide 71: General Information

Slide 72: Five Strong Reasons for an Investment in HUGO BOSS

Slide 73: HUGO BOSS at a Glance

Slide 74: Comparison of Actual and Forecast 2023 Performance

Slide 75: Sales and Earnings Development of Business Segments in 2023

Slide 76: Sales by Brand

Slide 77: Global Market Presence

Slide 78: Distribution Channels

Slide 79: Sales by Distribution Channel