Hugo Boss Ag · XETR:BOSS
Hugo Boss — Q1 2024 Earnings Presentation
20 slides from Hugo Boss's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS MAY 2, 2024 © 2022 HUGO BOSS
Slide 2: First Quarter 2024 Results – Yves Müller, CFO/COO
FIRST YEAR FULL QUARTER 2022 2024 RESULTS RESULTS PAGE 2 FIRST QUARTER 2024 RESULTS YVES MÜLLER CFO/COO © 2022 HUGO BOSS
Slide 3: Hugo Boss records further top- and bottom-line growth in Q1
FIRST QUARTER 2024 RESULTS PAGE 3 HUGO BOSS RECORDS FURTHER TOP- AND BOTTOM-LINE GROWTH IN Q1 GROUP SALES EBIT EBIT MARGIN 1,014 69 6.8% EUR MILLION EUR MILLION VS. Q1 2023 VS. Q1 2023 VS. Q1 2023 +6% CURRENCY-ADJUSTED +6% +10 BASIS POINTS +5% IN GROUP CURRENCY © 2022 HUGO BOSS
Slide 4: Successful launch of BOSS Spring/Summer 2024 collection
FULL YEAR FIRST 2022 RESULTS QUARTER 2024 RESULTS PAGE 4 SUCCESSFUL LAUNCH OF BOSS SPRING/SUMMER 2024 COLLECTION BOSS STRONG FOCUS ON 360° ACTIVATION DRIVES BRAND MOMENTUM BOSS STORE, PARIS © 2022 HUGO BOSS
Slide 5: Denim-focused line HUGO BLUE debuts with Spring/Summer 2024 collection
FIRST QUARTER 2024 RESULTS PAGE 5 DENIM-FOCUSED LINE HUGO BLUE DEBUTS WITH SPRING/SUMMER 2024 COLLECTION © 2022 HUGO BOSS
Slide 6: Impactful partnerships further drive brand relevance for BOSS and HUGO
FIRST QUARTER 2024 RESULTS PAGE 6 IMPACTFUL PARTNERSHIPS FURTHER DRIVE BRAND RELEVANCE FOR BOSS AND HUGO TENNIS PLAYER NAOMI X BOSS HUGO CELEBRATES TAYLOR FRITZ NEW TRAVEL CAPSULE PARTNERSHIP WITH BOSS AMBASSADOR COLLECTION FORMULA ONE © 2022 HUGO BOSS
Slide 7: Brand and product initiatives drive revenue increases across brands
FIRST QUARTER 2024 RESULTS PAGE 7 BRAND AND PRODUCT INITIATIVES DRIVE REVENUE INCREASES ACROSS BRANDS +5% * +7% * +9% * *CURRENCY-ADJUSTED VS. Q1 2023 VS. Q1 2023 VS. Q1 2023 BOSS BOSS HUGO MENSWEAR WOMENSWEAR © 2022 HUGO BOSS
Slide 8: Solid revenue improvements across all regions
FIRST QUARTER 2024 RESULTS PAGE 8 SOLID REVENUE IMPROVEMENTS ACROSS ALL REGIONS AMERICAS EMEA ASIA/PACIFIC +11% * +5% * * +4% * VS. Q1 2023 VS. Q1 2023 VS. Q1 2023 All markets contribute to Varying performance across Southeast Asia & Pacific continues *CURRENCY-ADJUSTED sales growth in the Americas
Slide 9: All consumer touchpoints record further sales improvements
FIRST QUARTER 2024 RESULTS PAGE 9 ALL CONSUMER TOUCHPOINTS RECORD FURTHER SALES IMPROVEMENTS B&M RETAIL B&M WHOLESALE DIGITAL +3% * +8% * +10% * VS. Q1 2023 VS. Q1 2023 VS. Q1 2023 *CURRENCY-ADJUSTED Growth driven by Performance reflects Revenue improvements store productivity gains robust demand fr
Slide 10: Efficiency gains in sourcing and lower product costs support gross margin development in Q1
FIRST QUARTER 2024 RESULTS PAGE 10 EFFICIENCY GAINS IN SOURCING AND LOWER PRODUCT COSTS SUPPORT GROSS MARGIN DEVELOPMENT IN Q1 Q1 2023 Q1 2024 SOURCINGEFFICIENCIES SOURCING EFFICIENCIES 61.4% 61.4% PRODUCT/MATERIAL SOURCING COST EFFICIENCIES 0 BP CHANNEL MIX SOURCING EFFICIENCIES REBATES EFFICIENCIE
Slide 11: Optimization of cost base leads to slight operating leverage in Q1
FIRST QUARTER 2024 RESULTS PAGE 11 OPTIMIZATION OF COST BASE LEADS TO SLIGHT OPERATING LEVERAGE IN Q1 OPERATING SELLING & MARKETING ADMINISTRATION EXPENSES EXPENSES EXPENSES EUR 554 MILLION I +5% EUR 442 MILLION I +7% EUR 112 MILLION I (2)% 54.6% 43.6% 11.0% (10) BP +70 BP (80) BP IN % OF SALES IN %
Slide 12: Further bottom-line improvements despite ongoing investments into business
FIRST QUARTER 2024 RESULTS PAGE 12 FURTHER BOTTOM-LINE IMPROVEMENTS DESPITE ONGOING INVESTMENTS INTO BUSINESS Q1 2024 CHANGE GROSS MARGIN 61.4% SOURCING EFFICIENCY GAINS SUPPORT GROSS MARGIN DEVELOPMENT 0 BP OPERATING EXPENSES (IN % OF SALES) (10) BP INVESTMENTS INTO BUSINESS MORE THAN OFFSET BY ENH
Slide 13: Further progress in optimizing inventory position
FIRST QUARTER 2024 RESULTS PAGE 13 FURTHER PROGRESS IN OPTIMIZING INVENTORY POSITION ABSOLUTE AND RELATIVE DEVELOPMENT OF INVENTORIES Inventories decline 2% currency-adjusted year over year 1,154 INVENTORIES IN % OF SALES INVENTORIES IN EUR MILLION 1,129 Inventories as a percentage of sales 1,065 1,
Slide 14: Decline in inventories supports free cash flow generation
FIRST QUARTER 2024 RESULTS PAGE 14 DECLINE IN INVENTORIES SUPPORTS FREE CASH FLOW GENERATION MARCH 31, 2024 JAN. MARCH 2024 JAN.-MARCH 2024 TRADE NET CAPITAL FREE CASH WORKING CAPITAL EXPENDITURE FLOW 890 21.2% EUR MILLION IN % OF SALES 47 EUR MILLION 13 EUR MILLION +14%* +480BP +15% >100% * CURRENC
Slide 15: Free cash flow generation to further accelerate in 2024
FIRST QUARTER 2024 RESULTS PAGE 15 FREE CASH FLOW GENERATION TO FURTHER ACCELERATE IN 2024 ~500 OPTIMIZATION IN TNWC CAPEX EFFICIENCY GAINS > 100% 96 13 JAN.-MARCH JAN.-DEC. JAN.-DEC. 2024 2023 2024E (120) JAN.-MARCH 2023 FREE CASH FLOW DEVELOPMENT (IN EUR MILLION) © 2022 HUGO BOSS
Slide 16: Hugo Boss confirms outlook for 2024
FIRST QUARTER 2024 RESULTS PAGE 16 HUGO BOSS CONFIRMS OUTLOOK FOR 2024 © 2022 HUGO BOSS
Slide 17: Outlook 2024
FIRST QUARTER 2024 RESULTS PAGE 17 OUTLOOK 2024 Macroeconomic and geopolitical uncertainties likely to remain elevated for the time being remains key priority in 2024 Ongoing focus on capitalizing on growth opportunities while also fostering measures to drive efficiency and effectiveness © 2022 HUGO
Slide 18: Outlook 2024
FIRST QUARTER 2024 RESULTS PAGE 18 OUTLOOK 2024 GROUP SALES EBIT (IN REPORTING CURRENCY) * +3% TO +6% +5% TO +15% 4.30 TO 4.45 430 TO 475 EUR BILLION EUR MILLION 2024E 2024E *Incl. expectation © 2022 HUGO BOSS of slight FX headwinds
Slide 19: Question, press * followed by 1
FIRST QUARTER 2024 RESULTS PAGE 19 PAGE 19 QUESTION, PRESS * FOLLOWED BY 1 © 2022 HUGO BOSS
Slide 20: Forward-looking statements contain risks
FIRST QUARTER 2024 RESULTS PAGE 20 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 r