Hugo Boss AG · XETR:BOSS

Hugo Boss — Q2 2024 Earnings Presentation

23 slides from Hugo Boss's earnings presentation, Aug 1, 2024

1. Slide 1: Second Quarter 2024 Results

   SECOND QUARTER 2024 RESULTS AUGUST 1, 2024 © 2022 HUGO BOSS

2. Slide 2: Second Quarter 2024 Results – Yves Müller, CFO/COO

   SECOND QUARTER 2024 RESULTS YVES MÜLLER CFO/COO © 2022 HUGO BOSS

3. Slide 3: Market environment further deteriorates in second quarter

   SECOND QUARTER 2024 RESULTS PAGE 3 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 a

4. Slide 4: Performance in second quarter impacted by overall market uncertainty

   SECOND QUARTER 2024 RESULTS PAGE 4 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

5. Slide 5: Ongoing brand strength supported by relentless boost to brand relevance

   SECOND QUARTER 2024 RESULTS PAGE 5 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

6. Slide 6: Leads to ongoing relative outperformance

   SECOND QUARTER 2024 RESULTS PAGE 6 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 *Based on actual results and Bloomberg consensus; Peer Group consists of Burberry, Capri, G-III Apparel, G

7. Slide 7: HUGO BOSS Q2 revenues continue to significantly exceed 2019 levels

   SECOND QUARTER 2024 RESULTS PAGE 7 HUGO BOSS Q2 REVENUES CONTINUE TO SIGNIFICANTLY EXCEED 2019 LEVELS SUCCESSFUL EXECUTION OF +51% Q2 Q4 2021 Q1 2022 Q2 2022 CURRENCY-ADJUSTED GROUP SALES DEVELOPMENT IN % VS. 2019 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 Q2 Q2 2024 2024

8. Slide 8: Successful activation of Millennials and Gen Z via focus on social media

   SECOND QUARTER 2024 RESULTS PAGE 8 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

9. Slide 9: HUGO BOSS launches innovative customer loyalty program

   FULL YEAR QUARTER SECOND 2022 RESULTS 2024 RESULTS PAGE 9 HUGO BOSS LAUNCHES INNOVATIVE CUSTOMER LOYALTY PROGRAM +30% ~9.5M SUCCESSFUL LAUNCH OF HUGO BOSS XP IN H1 MEMBER GROWTH TOTAL MEMBER BASE FURTHER ROLLOUT IN YOY END OF Q2 H2 2024 AND BEYOND © 2022 HUGO BOSS

10. Slide 10: H1 group sales up 3% currency-adjusted despite prevailing market conditions

    FULL YEAR 2022 RESULTS SECOND QUARTER 2024 RESULTS PAGE 10 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%

11. Slide 11: Growth in the Americas largely compensates for softness in EMEA and Asia/Pacific in Q2

    SECOND QUARTER 2024 RESULTS PAGE 11 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

12. Slide 12: Lower store traffic weighs on B&M retail performance in Q2

    SECOND QUARTER 2024 RESULTS PAGE 12 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

13. Slide 13: 2024 Sales Outlook

    SECOND QUARTER 2024 RESULTS PAGE 13 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

14. Slide 14: Several brand and product initiatives to take place in H2 2024

    SECOND QUARTER 2024 RESULTS PAGE 14 SEVERAL BRAND AND PRODUCT INITIATIVES TO TAKE PLACE IN H2 2024 BOSS CAMPAIGN FASHION PARTNERSHIP WITH PRODUCT WINTER 2024 EVENTS DAVID BECKHAM INNOVATION © 2022 HUGO BOSS

15. Slide 15: Accelerated focus on further improving operational and organizational productivity

    SECOND QUARTER 2024 RESULTS PAGE 15 ACCELERATED FOCUS ON FURTHER IMPROVING OPERATIONAL AND ORGANIZATIONAL PRODUCTIVITY © 2022 HUGO BOSS

16. Slide 16: Capitalizing on operational platform to realize further sourcing efficiency gains

    SECOND QUARTER 2024 RESULTS PAGE 16 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 B

17. Slide 17: Accelerating our cost discipline against ongoing volatile macro environment

    SECOND QUARTER 2024 RESULTS PAGE 17 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 I

18. Slide 18: Several cost measures implemented to mitigate increase in operating expenses

    SECOND QUARTER 2024 RESULTS PAGE 18 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 cours

19. Slide 19: 2024 EBIT Outlook

    SECOND QUARTER 2024 RESULTS PAGE 19 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 stro

20. Slide 20: Further progress in optimizing inventory position

    SECOND QUARTER 2024 RESULTS PAGE 20 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

21. Slide 21: Optimization in inventories to further support TNWC and free cash flow generation

    SECOND QUARTER 2024 RESULTS PAGE 21 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 MILLIO

22. Slide 22: HUGO BOSS fully committed to maximizing shareholder return in the long term

    SECOND QUARTER 2024 RESULTS PAGE 22 HUGO BOSS FULLY COMMITTED TO MAXIMIZING SHAREHOLDER RETURN IN THE LONG TERM © 2022 HUGO BOSS

23. Slide 23: Q&A

    SECOND QUARTER 2024 RESULTS PAGE 23 A QUESTION, PRESS * FOLLOWED BY 1 Q&A © 2022 HUGO BOSS

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