Hugo Boss AG · XETR:BOSS
Hugo Boss — German Corporate Conference 2018
29 slides from Hugo Boss's conference presentation, January 2018
Slide 1: HUGO BOSS
HUGO BOSS
Slide 2: Third Quarter Results 2017
Third Quarter Results 2017 German Corporate Conference 2018 HUGO BOSS © January 2018 3
Slide 3: HUGO BOSS records solid sales increase in the third quarter
HUGO BOSS records solid sales increase in the third quarter Group Sales (in EUR million) ■ Improved sales momentum in own retail +1 % +3 % fx-adjusted ■ Healthy increases in Europe and China ■ US retail business returns to comp store sales growth 703 711 Q3 2016 Q3 2017 German Corporate Conference 2
Slide 4: Pace of growth in own retail accelerates
Pace of growth in own retail accelerates Retail Sales* Wholesale Sales* License Sales* +3 % (3) % +24 % +6 % fx-adjusted (1) % fx-adjusted +24 % fx-adjusted 398 410 289 281 16 20 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 ■ 5% comp store sales growth ■ Decline in the Americas partly ■ Strong fr
Slide 5: Sales and earnings increase in the first nine months
Sales and earnings increase in the first nine months Group Sales (Jan. - Sep. 2017) Sales by Region (Jan. - Sep. 2017) +2 % +2 % 1.998 Mio. EUR +2% fx-adjusted Europe +3% fx-adjusted EBITDA (before special items) +1 (2) % 348 Mio. EUR % Americas (3)% fx-adjusted Net income +4 % 186 Mio. EUR +43 % As
Slide 6: Group Strategy Update
Group Strategy Update German Corporate Conference 2018 HUGO BOSS © January 2018 14
Slide 7: Group strategy focuses on four fields of action
Group strategy focuses on four fields of action DIGITAL III. DRIVE THE I. REFOCUS DIGITAL TRANS- THE BRAND FORMATION GLOBAL AGILE CUSTOMER- CENTRIC II. REFINE THE IV. INNOVATE WAY THE WAY WE SELL WE OPERATE SUSTAINABLE German Corporate Conference 2018 HUGO BOSS © January 2018 15
Slide 8: Strategic Fields of Action
Strategic Fields of Action DIGITAL III. DRIVE THE I. REFOCUS DIGITAL TRANS- THE BRAND FORMATION GLOBAL AGILE CUSTOMER- CENTRIC II. REFINE THE IV. INNOVATE WAY THE WAY WE SELL WE OPERATE SUSTAINABLE German Corporate Conference 2018 HUGO BOSS © January 2018 16
Slide 9: Two brands: BOSS and HUGO
Two brands: BOSS and HUGO #THISISBOSS #IAMHUGO TWO BRANDS TWO TARGET CUSTOMERS TWO BRAND IDENTITIES German Corporate Conference 2018 HUGO BOSS © January 2018 17
Slide 10: BOSS: Upgrade of casualwear and new interpretation of formalwear
BOSS: Upgrade of casualwear and new interpretation of formalwear Split of BOSS brand sales by segment In EUR billion ~2.0 CAGR ~1.4 +8% 51% 59% CAGR +3% 49% 41% 2010 2016 Casualwear Formalwear German Corporate Conference 2018 HUGO BOSS © January 2018 20
Slide 11: BOSS: Rebalanced offer takes advantage of BOSS core strength in upper premium
BOSS: Rebalanced offer takes advantage of BOSS core strength in upper premium Suit offer by price point Based on number of styles offered in France, in % of total >800 26% 23% 25% 700 - 799 31% 43% 600 - 699 43% 595 9% 0% Spring/Summer 2017 collection Spring/Summer 2018 collection German Corporate C
Slide 12: BOSS Menswear collection spans three wearing occasions
BOSS Menswear collection spans three wearing occasions BUSINESS CASUAL AT H L E I S U R E DRESSED IMPECCABLY FOR EVERY OCCASION German Corporate Conference 2018 HUGO BOSS © January 2018 22
Slide 13: HUGO: Refined brand positioning receives strong feedback
HUGO: Refined brand positioning receives strong feedback German Corporate Conference 2018 HUGO BOSS © January 2018 26
Slide 14: Strategic Fields of Action
Strategic Fields of Action DIGITAL III. DRIVE THE I. REFOCUS DIGITAL TRANS- THE BRAND FORMATION GLOBAL AGILE CUSTOMER- CENTRIC II. REFINE THE IV. INNOVATE WAY THE WAY WE SELL WE OPERATE SUSTAINABLE German Corporate Conference 2018 HUGO BOSS © January 2018 29
Slide 15: Three key distribution priorities
Three key distribution priorities Increase own retail sales Exploit the full potential of online Further integrate distribution 1 productivity 2 3 across all channels Retail sales productivity ~13,000 In EUR/m2 10,900 Better and broader offering at entry price points Expansion of casual and athl
Slide 16: Three key distribution priorities
Three key distribution priorities Increase own retail sales Exploit the full potential of online Further integrate distribution 1 productivity 2 3 across all channels hugoboss.com Fulfillment onlinepureplay.com Partner (insourced in 2016) CUSTOMER departmentstore.com Social commerce German Corporate
Slide 17: Over 90% of European retail business omnichannel-enabled
Three key distribution priorities Increase own retail sales Exploit the full potential of online Further integrate distribution 1 productivity 2 3 across all channels + 90 % of European retail business omnichannel-enabled 32 German Corporate Conference 2018 HUGO BOSS © January 2018
Slide 18: Strategic Fields of Action
Strategic Fields of Action DIGITAL III. DRIVE THE I. REFOCUS DIGITAL TRANS- THE BRAND FORMATION GLOBAL AGILE CUSTOMER- CENTRIC II. REFINE THE IV. INNOVATE WAY THE WAY WE SELL WE OPERATE SUSTAINABLE German Corporate Conference 2018 HUGO BOSS © January 2018 35
Slide 19: Digital transformation comprises the entire value chain
Digital transformation comprises the entire value chain Product & collection Sourcing Distribution Own retail and development and production and logistics wholesale distribution German Corporate Conference 2018 HUGO BOSS © January 2018 36
Slide 20: New store concepts create strong link between physical and digital retailing
Product and collection development │ Sourcing and production │ Distribution and logistics │ Sales New store concepts create strong link between physical and digital retailing German Corporate Conference 2018 HUGO BOSS © January 2018 40
Slide 21: Strategic Fields of Action
Strategic Fields of Action DIGITAL III. DRIVE THE I. REFOCUS DIGITAL TRANS- THE BRAND FORMATION GLOBAL AGILE CUSTOMER- CENTRIC II. REFINE THE IV. INNOVATE WAY THE WAY WE SELL WE OPERATE SUSTAINABLE German Corporate Conference 2018 HUGO BOSS © January 2018 42
Slide 22: Digital showroom development demonstrates adoption of new ways of working
Digital showroom development demonstrates adoption of new ways of working Strict focus on customer value Delegation of decision making power Use of Scrum methodology German Corporate Conference 2018 HUGO BOSS © January 2018 43
Slide 23: Speed drives commercial success
Speed drives commercial success Adjust collection content based on short-term trends Replenish Become more sold-out flexible in our bestsellers approach in-season towards seasons Demand-driven supply Supplement the regular collection development process with a fast track concept which reduces the ti
Slide 24: New Chief Financial Officer Yves Müller took office in December 2017
New Chief Financial Officer Yves Müller took office in December 2017 Responsibilities / / Controlling, Finance, Central Services, Investor Relations and IT 2006 – 2017: CFO at Tchibo 1999 – 2006: Head of group accounting and IT at Tchibo 1994 – 1999: Auditor at Arthur Andersen German Corporate Confe
Slide 25: Operating profit to remain on prior year level in 2017
Operating profit to remain on prior year level in 2017 Low single-digit percentage Sales* rate increase Gross profit margin Slight increase EBITDA Largely stable Specification before special items Low double-digit Consolidated net income percentage rate increase EUR 130 million to Capital expenditur
Slide 26: Preliminary results reported yesterday underpin strong sales momentum
Preliminary results reported yesterday underpin strong sales momentum Sales growth by region, y-o-y Q4 2017 (in %, fx-adjusted) FY 2017 ■ Q4 retail comp store sales up 7% on prior 1 year, online sales up 42% Europe* 2 ■ U.S. sales grow at double-digit rate in Q4, 11 Great Britain and China also cont
Slide 27: Strategy execution will drive profitable and sustainable growth
Strategy execution will drive profitable and sustainable growth Profitable and sustainable growth 2019+ Acceleration Stabilization 2018 Grow sales stronger than market, increase 2017 operating profit Grow sales and stronger than sales Sales up 3% based on operating profit preliminary results,
Slide 28: HUGO BOSS will further strengthen its position in the premium apparel industry
HUGO BOSS will further strengthen its position in the premium apparel industry BOSS and HUGO will outgrow their respective market segments Refined strategy will elevate brand desirability and customer experience Agility will become key feature of the operating model German Corporate Conference 2018
Slide 29: HUGO BOSS
HUGO BOSS