Hugo Boss Ag · XETR:BOSS
Hugo Boss — Q3 2024 Earnings Presentation
20 slides from Hugo Boss's earnings presentation, Nov 5, 2024
Slide 1: Third Quarter 2024 Results
THIRD QUARTER 2024 RESULTS NOVEMBER 5, 2024 © 2022 HUGO BOSS
Slide 2: Third Quarter 2024 Results
THIRDYEAR FULL QUARTER 2022 RESULTS 2024 RESULTS PAGE 2 THIRD QUARTER 2024 RESULTS YVES MÜLLER CFO/COO © 2022 HUGO BOSS
Slide 3: Hugo Boss with solid performance in third quarter
THIRD QUARTER 2024 RESULTS PAGE 3 HUGO BOSS WITH SOLID PERFORMANCE IN THIRD QUARTER ✓ REVENUE IMPROVEMENTS IN Q3 DESPITE SUBDUED CONSUMER SENTIMENT ✓ Q3 PERFORMANCE REFLECTS BRAND STRENGTH OF BOSS AND HUGO ✓ PROGRESS IN IMPROVING COST EFFICIENCY SUPPORTS BOTTOM-LINE DEVELOPMENT © 2022 HUGO BOSS
Slide 4: Hugo Boss returns to growth in third quarter
THIRD QUARTER 2024 RESULTS PAGE 4 HUGO BOSS RETURNS TO GROWTH IN THIRD QUARTER GROUP SALES CURRENCY-ADJUSTED IN GROUP CURRENCY 1,029 +1% 0% EUR MILLION VS. Q3 2023 VS. Q3 2023 © 2022 HUGO BOSS
Slide 5: Brand and product initiatives drive brand momentum of BOSS and HUGO
THIRD QUARTER 2024 RESULTS PAGE 5 BRAND AND PRODUCT INITIATIVES DRIVE BRAND MOMENTUM OF BOSS AND HUGO BOSS FALL/WINTER BOSS SPRING/SUMMER HUGO X 2024 CAMPAIGN 2025 FASHION SHOW RED BULL x2 > 40 ENGAGEMENTS MILLION VS. FALL/WINTER LIVE-STREAMING 2023 CAMPAIGN VIEWS © 2022 HUGO BOSS
Slide 6: Solid revenue improvements for BOSS and HUGO in Q3
THIRD QUARTER 2024 RESULTS PAGE 6 SOLID REVENUE IMPROVEMENTS FOR BOSS AND HUGO IN Q3 +1% * +2% * +2% * *CURRENCY-ADJUSTED VS. Q3 2023 VS. Q3 2023 VS. Q3 2023 BOSS BOSS HUGO MENSWEAR WOMENSWEAR © 2022 HUGO BOSS
Slide 7: Growth in the Americas and EMEA offsets decline in Asia/Pacific
THIRD QUARTER 2024 RESULTS PAGE 7 GROWTH IN THE AMERICAS AND EMEA OFFSETS DECLINE IN ASIA/PACIFIC AMERICAS EMEA ASIA/PACIFIC +4% * +1% * (7)% * VS. Q3 2023 VS. Q3 2023 VS. Q3 2023 Growth trajectory in the Americas Revenue improvements in Germany Sales development in Asia/Pacific *CURRENCY-ADJUSTED c
Slide 8: Muted consumer sentiment weighs on brick-and-mortar retail performance in Q3
THIRD QUARTER 2024 RESULTS PAGE 8 MUTED CONSUMER SENTIMENT WEIGHS ON BRICK-AND-MORTAR RETAIL PERFORMANCE IN Q3 B&M RETAIL B&M WHOLESALE DIGITAL (3)% VS. Q3 2023 * +4% VS. Q3 2023 * +6% VS. Q3 2023 * *CURRENCY-ADJUSTED Lower store traffic more Growth reflects robust Revenue improvements than offsets
Slide 9: Further rollout enhances omnichannel experience
THIRD QUARTER 2024 RESULTS PAGE 9 ENHANCES OMNICHANNEL EXPERIENCE +25%* FURTHER YEAR OVER YEAR ROLLOUT REGISTERED CUSTOMERS TO GERMANY AND FRANCE TO ~10 MILLION IN OCTOBER *AT THE END OF Q3 © 2023 HUGO BOSS
Slide 10: Bottom-line development supported by increased focus on cost efficiencies
THIRD QUARTER 2024 RESULTS PAGE 10 BOTTOM-LINE DEVELOPMENT SUPPORTED BY INCREASED FOCUS ON COST EFFICIENCIES EBIT EBIT MARGIN 95 9.3% EUR MILLION (7)% (80) BP VS. Q3 2023 VS. Q3 2023 © 2023 HUGO BOSS
Slide 11: Gross margin declines in Q3 despite accelerated sourcing efficiencies
THIRD QUARTER 2024 RESULTS PAGE 11 GROSS MARGIN DECLINES IN Q3 DESPITE ACCELERATED SOURCING EFFICIENCIES Product costs Freight Channel/ Sourcing Regional efficiency mix Rebates 60.7% FX 60.2% (50) bp ~ +200 BP ~(250) BP Operations platform Increased headwind successfully leveraged from external fact
Slide 12: Focus on cost efficiency limits growth in operating expenses in Q3
THIRD QUARTER 2024 RESULTS PAGE 12 FOCUS ON COST EFFICIENCY LIMITS GROWTH IN OPERATING EXPENSES IN Q3 Q2 Q3 OPERATING OPERATING EXPENSES EXPENSES +9% B&M RETAIL COSTS UP 6% IN Q3; GROWTH HALVES +1% VS. Q2 (+12%) MARKETING INVESTMENTS 519 567 DECREASE OF 3% IN Q3 REFLECTS 520 524 EUR EUR EUR EUR MILL
Slide 13: Enhanced cost discipline supports bottom-line development
THIRD QUARTER 2024 RESULTS PAGE 13 ENHANCED COST DISCIPLINE SUPPORTS BOTTOM-LINE DEVELOPMENT Q3 2024 CHANGE GROSS MARGIN 60.2% (50) BP EXTERNAL FACTORS WEIGH ON GROSS MARGIN DEVELOPMENT OPERATING EXPENSES (IN % OF SALES) EXECUTION OF COST MEASURES LEADS TO ENHANCED EFFICIENCY 50.9% +30 BP EBIT 95 (7
Slide 14: Improvements in trade net working capital support free cash flow development
THIRD QUARTER 2024 RESULTS PAGE 14 IMPROVEMENTS IN TRADE NET WORKING CAPITAL SUPPORT FREE CASH FLOW DEVELOPMENT SEP. 30, 2024 JULY SEP. 2024 JULY SEP. 2024 TRADE NET CAPITAL FREE CASH WORKING CAPITAL EXPENDITURE FLOW 853 20.4% EUR MILLION IN % OF SALES 89 EUR MILLION 40 EUR MILLION (10)%* +60 BP +28
Slide 15: Hugo Boss confirms top- and bottom-line outlook for 2024
THIRD QUARTER 2024 RESULTS PAGE 15 HUGO BOSS CONFIRMS TOP- AND BOTTOM-LINE OUTLOOK FOR 2024 © 2022 HUGO BOSS
Slide 16: Outlook 2024: Group sales
THIRD QUARTER 2024 RESULTS PAGE 16 OUTLOOK 2024 GROUP SALES Robust order intake and brand, product, and (IN GROUP CURRENCY) sales initiatives to support top-line momentum +1% TO +4% Top-line guidance includes anticipation of currencies having a slightly negative impact 4.20 TO 4.35 EUR BILLION 2024E
Slide 17: Outlook 2024: EBIT
THIRD QUARTER 2024 RESULTS PAGE 17 OUTLOOK 2024 EBIT Ongoing commitment to enhancing efficiencies across organization (15)% TO +5% Implemented cost measures to support profitability also going forward 350 TO 430 EUR MILLION 2024E © 2022 HUGO BOSS
Slide 18: Balanced approach to safeguard profitability and leverage
THIRD QUARTER 2024 RESULTS PAGE 18 BALANCED APPROACH TO SAFEGUARD PROFITABILITY AND LEVERAGE LONG-TERM GROWTH POTENTIAL © 2022 HUGO BOSS
Slide 19: Questions
THIRD QUARTER 2024 RESULTS PAGE 19 QUESTION, PRESS * FOLLOWED BY 1 © 2022 HUGO BOSS
Slide 20: Forward-looking statements contain risks
THIRD 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