Annual Shareholders’ Meeting 2016 - Hugo Boss · 5/19/2016 · Annual Shareholders´Meeting 2016...
Transcript of Annual Shareholders’ Meeting 2016 - Hugo Boss · 5/19/2016 · Annual Shareholders´Meeting 2016...
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HUGO BOSS ©
Mark Langer (Chief Executive Officer)Stuttgart, May 19, 2016
May 19, 2016 2Annual Shareholders Meeting 2016
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HUGO BOSS ©
*+3% FX-adjusted
2015 marks another year of growth for HUGO BOSS
Sales
EBITDA before special items
Sales and EBITDA before special items(in EUR million)
594591565528470354
269
+1%
+9%*
2015
2,809
2014
2,572
2013
2,432
2012
2,346
2011
2,059
2010
1,729
2009
1,562
Annual Shareholders Meeting 2016 May 19, 2016 3
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HUGO BOSS © May 19, 2016Annual Shareholders Meeting 2016
The market environment was and continues to be challenging
apparel market, y-o-y Retail sales development
(in %)***
0
(2)
2012
(2)
2013
(3)
20152014
12
2015
(12)
(1)
2012 2013
(10)
2014
*Source: TextilWirtschaft, based on TW-Testclub Panel; **Source: Bain & Comp. Altagamma 2015 Worldwide Markets Monitor; ***Source: Bain & Comp., 2015 China Luxury Market Study
German apparel
market, y-o-yRetail sales development
(in %)*
Americas luxury goods
market, y-o-yPersonal luxury goods market
(in %)**0
4
7
5
2015201420132012
4
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HUGO BOSS © May 19, 2016Annual Shareholders Meeting 2016
Europe again best performing region
HUGO BOSS Europe sales 2015(in EUR million // FX-adj. change)
2015
1,683
2014
1,567
2013
1,457
2012
1,378
2011
1,245
2010
1,073
HUGO BOSS Europe sales 2010-2015(in EUR million)
+6%
FY
2015
1.683
FY
2014
1.567
5
BOSS Store Zurich // Bahnhofstrasse
+10%
Q4
2015
430
Q4
2014
382
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HUGO BOSS © May 19, 2016Annual Shareholders Meeting 2016
Impressive fashion shows for BOSS Womenswear
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HUGO BOSS ©
Moderate sales and earnings growth in 2015
EBITDA (before special items)
594 EUR million
Net income attributable to
equity holders of the parent company
319 EUR million
(4)%
Annual Shareholders Meeting 2016 May 19, 2016 7
(1)% (3)%+6%
AmericasEurope* Asia/Pacific
1%
*Incl. Middle East and Africa
FX-adjusted sales development2015 (in %)
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HUGO BOSS © May 19, 2016Annual Shareholders Meeting 2016
Dividend proposal underlines confidence in long-term growth
0
10
20
30
40
50
60
70
80
90
100
1.00
0.50
1.50
0.00
3.00
4.00
3.50
2.50
2.00
75%
3.34
70%
2012
3.12
in %***
20132007
1.45*
66%
2006
1.19
65%
2005
1.00
64%
2015
3.62**
78%
2014
3.62
70%
2011
2.88
70%
2010
2.02
75%
2009
0.96
64%
2008
1.37
85%
in EUR
Dividend policy reconfirmed: paying out between 60% and 80% of consolidated net income
*Excluding special dividend of 5.00 per share **Proposal for fiscal year 2015 ***As a percentage of net income attributable to shareholders
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HUGO BOSS © May 19, 2016 9Annual Shareholders Meeting 2016
Market environment in the Americas and Asia/Pacific weighs on quarterly results
Q1 EBITDA before special items(in EUR million)
93
132
(29)%
Q1 2016Q1 2015
Q1 Sales (in EUR million)
643668
Q1 2016
(4)%
Q1 2015
((3)% FX-adjusted)
Sales decline across all regions
Own retail comp store sales decrease 6%
EBITDA down due to higher discounts and inventory
write-offs
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HUGO BOSS © May 19, 2016 10Annual Shareholders Meeting 2016
Group addresses challenges in the US and China
Improvement of wholesale distribution
Reduction of brand presence in off-price channels
US
China
Ongoing upgrade of retail network in China
Price reduction of 20% leads to double-digit volume
increase
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HUGO BOSS ©Annual Shareholders Meeting 2016
Comprehensive measures initiated to improve cost efficiency
EUR 50 million of cost savings compared to original
budget identified
Significant reduction of capital expenditures
Focus on productivity increases in existing stores,
closing of underperforming stores planned
BOSS Store Düsseldorf // Reopening after renovation
in June 2015
May 19, 2016 11
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HUGO BOSS ©
Outlook 2016
Sales (currency adjusted) Low single-digit percentage increase
Gross profit margin Stable performance
EBITDA before special items Low double-digit percentage decrease
Capex EUR 160 million to EUR 180 million
Free cash flow Increase
Outlook for 2016 confirmed
May 19, 2016 12Annual Shareholders Meeting 2016
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HUGO BOSS ©Annual Shareholders Meeting 2016
Market environment changes rapidly
Industry suffers
from cautious
consumer buying
Digital shapes
shopping habits
Consumers think
globally
Various channels
influence brand
experience
Sustainability
shapes
perception
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HUGO BOSS ©Annual Shareholders Meeting 2016
future course
F A S T
D I G I T A L
S U S T A I N A B L EC U S T O M E R
C E N T R I C
G L O B A L
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HUGO BOSS ©Annual Shareholders Meeting 2016
C U S T O M E R C E N T R I C
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