Stuttgart - Hugo Boss...2017/05/23 · HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS ©...
Transcript of Stuttgart - Hugo Boss...2017/05/23 · HUGO BOSS Annual Shareholders’ Meeting 2017 HUGO BOSS ©...
Stuttgart – May 23, 2017
Annual Shareholders’Meeting 2017
Mark Langer – Chief Executive Officer
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2016 – A year of change
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Luxury apparel market declines in 2016
* Source: Bain & Altagamma
2%
2013
2%
2012
8%
2011
8%
2010
12%
2016
(4%)
2%
20152014
Luxury apparel market growth*(FX-adjusted)
Overall positive consumption
climate does not support
industry sales
Apparel is losing share of
consumers’ wallet
High level of promotions
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HUGO BOSS responded swiftly to challenges
1 Comprehensive cost savings achieved
2 Optimization of store network initiated
3 Distribution upgraded in the U.S.
4 Global prices harmonized further
5 Foundation built for future growth in digital
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Sales decline weighs on earnings in 2016
Group sales FY 2016
FX-adjusted: (2)%
493 EUR million
(17)%
194 EUR million
(39)%
(4)%
2,693 EUR million
Americas
Europe*
Asia/Pacific
FX-adjusted: +1%
FX-adjusted: (12)%
FX-adjusted: (2)%
(1)%
(13)%
(3)%
Sales FY 2016 (by region)
EBITDA (before special items)
Net income attributable to equity holders of the parent company
*incl. Middle East and Africa.
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HUGO BOSS is more profitable than many competitors
13.8%
Ralph Lauren
14.5%
Ted Baker
16.3%
HUGO BOSS
18.3%
Armani
~19%*
10.8%
ZegnaPVH
EBITDA margin 2016 before special items
* 2015. 2016 financials not yet available.
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HUGO BOSS pursues an attractive dividend policy
(in EUR)
Dividend per share and payout ratio
3,623,62
3,343,12
2,88
93
78
75
707070
0,00
1,00
2,00
3,00
4,00
60
80
100
2016
2,60*
20152014201320122011
* Proposal for fiscal year 2016. ** As a percentage of net income attributable to equity holders of the parent company.
(in %**)
One-time effects and strong
free cash flow warrant
exception from dividend policy
Dividend policy of paying out
between 60% and 80% of
consolidated net income
reconfirmed
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40
50
60
70
8012/30/2015:
EUR 76.60
12/30/2016:
EUR 58.13
05/19/2017:
EUR 69.86
HUGO BOSS share has gained significantly since the beginning of 2017
(24)% +20%
2016 2017
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Group strategy focuses on four fields of action
C U S T O M E R -
C E N T R I C
III. DRIVE THE
DIGITAL TRANS-
FORMATION
IV. INNOVATE
THE WAY
WE OPERATE
I. REFOCUS
THE BRAND
II. REFINE THE
WAY
WE SELL
D I G I T A L
G L O B A L A G I L E
S U S T A I N A B L E
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Focus on two clearly positioned brands
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BOSS dresses the demanding customer for all wearing occasions
(Early) summer 2017:
Sell in of Spring/Summer 2018 collection to wholesale partners
End of 2017:
Spring/Summer 2018 collection in stores
B U S I N E S S A T H L E I S U R EC A S U A L
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Womenswear continues to be an important part of HUGO BOSS
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CASUAL BUSINESS
HUGO represents an exciting long-term growth opportunity
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Expansion of suit offering Made in
Germany
Better fabrics and trimmings
upgrade offering at entry price
points
Strict quality controls throughout
the entire product life cycle
Uncompromising focus on superior quality
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Positive feedback from wholesale
partners on refined brand strategy
Order intake for Fall/Winter 2017 in
line with expectations, increasing
demand in casualwear
Group confirms plans to further
align global selling prices
Wholesale partners welcome clarity and consistency of brand positioning
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Target to increase own retail sales productivity by 20% in the next five years
Expansion of casual
and athleisure
offering in stores
Better and broader
offering at entry price
points
Rollout of
omnichannel
services
Investment in retail
staff training
Optimization of
retail network
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May 2017
Enable the cultural transformation
The digitization of the business model continues
Set the foundation
Takeover of online
fulfillment in Europe
hugoboss.com and iOS
app (re)launches
Omnichannel pilots
Develop the model
Digitization of existing
business model
Addition of new
business models
Improve performance
Rollout of omnichannel services
Commercial optimization of
hugoboss.com and app
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Foster entrepreneurial thinking
Drive active change
Create cross-functional teams
Cultural change enables organizational agility
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HUGO BOSS strengthens sustainability
Intensify stakeholder
dialogueCreate transparency
Engage in alliances Expand product sustainability
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Sales* Largely stable
EBITDA
before special items-3% to +3%
Consolidated net incomeIncrease at low double-digit
percentage rate
Stable operating performance expected in 2017
* FX-adjusted
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First quarter results 2017 in line with full year outlook
Group sales Q1 2017
FX-adjusted: +1%
97 EUR million+4%
48 EUR million +25%
+1%
651 EUR million
Americas
Europe*
Asia/Pacific
FX-adjusted: +3%
FX-adjusted: (7)%
FX-adjusted: +1%
+2%
(4)%
+3%
Sales Q1 2017 (by region)
EBITDA (before special items)
Net income attributable to equity holders of the parent company
*Incl. Middle East and Africa.
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HUGOFashion
Show
June 2017
July 2017
BOSSFashion
Show
Sell in of
Spring/Summer
2018 collection
Important milestones on the return to profitable growth ahead
Until August 2017 Starting end of 2017
StoresWholesale
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2017 – A year of stabilization and strategy implementation
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Questions &
Answers
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Forward looking statements contain risks
This document contains forward-looking statements that reflect management's current views with
respect to future events. The words "anticipate ", "assume ", "believe", "estimate", "expect", "intend",
"may", "plan", "project", "should", and similar expressions identify forward-looking statements. Such
statements are subject to risks and uncertainties. If any of these or other risks and uncertainties occur, or
if the assumptions underlying any of these statements prove incorrect, then actual results may be
materially different from those expressed or implied by such statements. We do not intend or assume
any obligation to update any forward-looking statement, which speaks only as of the date on which it is
made.