In fiscal year 2021, HUGO BOSS recorded strong improvements in sales, earnings, and free cash flow. As a result of the lifting of pandemic-related restrictions and strong progress in vaccination campaigns, global consumer sentiment picked up noticeably over the course of the year. The corresponding increase in local demand was particularly evident in Europe and the Americas. In the third quarter, in light of a further strong recovery of its global business, HUGO BOSS already returned to pre-pandemic sales and earnings levels. Finally, in the fourth quarter, the Company recorded the highest quarterly sales in its history, driven by a further acceleration in momentum. As a result, HUGO BOSS was able to exceed its sales and earnings targets for fiscal year 2021, which had already been revised upwards back in October. Comparison of Actual and Forecast Business Performance
In addition to its strong operational and financial performance, HUGO BOSS also made first great strides in successfully executing several key brand, product, and sales initiatives as part of its “CLAIM 5” strategy presented in August 2021. The targets set out in “CLAIM 5” include doubling sales to EUR 4 billion by 2025 and returning to an EBIT margin of 12%. This, in turn, shall enable HUGO BOSS to become one of the top 100 global brands. As part of the strategic claim “Boost Brands”, in 2021, the Company began to comprehensively renew the global brand image of BOSS and HUGO and expand its marketing activities – with a strong focus on social media – in order to significantly drive brand relevance, in particular among younger consumers. In line with its claim “Product is King”, in 2021, BOSS clearly emphasized its ambition to further strengthen its position in the important casualwear segment and to establish itself as a true 24/7 lifestyle brand. At the same time, HUGO – with its broad range of trendy and modern products – has made important initial progress towards becoming the first point of contact for younger consumers. HUGO BOSS also made first successes with regard to its two claims “Lead in Digital” and “Rebalance Omnichannel”. To these ends, the Company successfully established the HUGO BOSS Digital Campus, which is intended to accelerate the digitalization of the business model and further strengthen the Company’s global digital business. At the same time, HUGO BOSS also further optimized its global store network in 2021, pushing ahead in particular with the modernization and emotionalization of existing points of sale. In line with its claim “Organize for Growth”, the Company further strengthened its organizational structure in 2021 and also made important progress towards further driving efficiency and flexibility along its value chain. At the same time, HUGO BOSS intensified its diverse activities in the area of sustainability also in 2021, in particular by significantly expanding the proportion of more sustainable products in its brands’ offerings. Group Strategy
Overall, Group sales increased by 43% currency-adjusted, totaling EUR 2,786 million in 2021 (2020: EUR 1,946 million). Both brands – BOSS and HUGO – as well as all regions and distribution channels contributed to growth. Consequently, currency-adjusted sales remained only 1% below pre-pandemic levels (2019: EUR 2,884 million). In light of the strong top-line performance, operating profit (EBIT) also recovered noticeably over the course of the year, recording strong improvements. Consequently, HUGO BOSS generated an EBIT of EUR 228 million in fiscal year 2021 (2020: minus EUR 236 million). The earnings development was also supported by improvements in gross margin as well as strong operating overhead leverage. As a result of the significant top- and bottom-line growth as well as noticeable improvements in trade net working capital (TNWC), free cash flow increased to a record level of EUR 559 million (2020: EUR 164 million). Earnings Development, Financial Position
In fiscal year 2022, HUGO BOSS will put particular emphasis on its “CLAIM 5” strategy as well as the continued successful execution of its strategic initiatives aimed at achieving another important milestone with regard to its 2025 financial ambition. The Company thus anticipates further strong top- and bottom-line improvements in the current fiscal year. HUGO BOSS expects Group sales to increase between +10% and +15% to a record level of between EUR 3.1 billion and EUR 3.2 billion in 2022. The Company also aims to improve EBIT within a range of +10% and +25% to an amount of between EUR 250 million and EUR 285 million in 2022. In this context, the investments planned for 2022 as part of “CLAIM 5” – above all in products, brands, and digital expertise – will be largely offset by efficiency gains. Outlook
In view of the strong operational and financial performance in 2021, the very solid financial position as well as management’s confidence in the successful execution of its “CLAIM 5” growth strategy, HUGO BOSS is planning to resume dividend payments. Consequently, the Managing Board and the Supervisory Board intend to propose to the Annual Shareholders’ Meeting on May 24, 2022, a dividend of EUR 0.70 per share for fiscal year 2021. In view of its healthy balance sheet structure and the strong free cash flow generation, the Group is in an exceedingly solid economic situation at the time of preparing this report. Outlook
Metzingen, February 24, 2022
HUGO BOSS AG
The Managing Board
Daniel Grieder
Yves Müller
Dr. Heiko Schäfer
Oliver Timm
Ingo Wilts