FIRST HALF YEAR REPORT JANUARY-JUNE2022
First Half Year Report 2022
Contents
Page 2
CONTENTS
1 CONSOLIDATED INTERIM MANAGEMENT REPORT
5 General Economic Situation and Industry
7 Earnings Development
7 Sales Performance
11 Income Statement
12 Sales and Earnings Development
of the Business Segments
15 Net Assets
16 Financial Position
17 Outlook
17 Subsequent Events
17 Outlook
19 Risks and Opportunities
20 Summary on Earnings, Net Assets, and Financial Position
Due to rounding, numbers presented in this First Half Year Report may not add up precisely to the totals provided.
2 CONSOLIDATED INTERIM FINANCIAL STATEMENTS
22 Consolidated Income Statement
23 Consolidated Statement of Comprehensive Income
24 Consolidated Statement of Financial Position
25 Consolidated Statement of Changes in Equity
26 Consolidated Statement of Cash Flows
27 Condensed Notes to the Consolidated Interim Financial Statements
3
FURTHER INFORMATION
50 Responsibility Statement
- Forward-LookingStatements and Contacts
- Financial Calendar
First Half Year Report 2022
Key Figures
Page 3
KEY FIGURES
(in EUR million) | Change | Currency-adjusted | |||||||
2022 | 2021 | in % | change in % | ||||||
Sales | 1,650 | 1,126 | 47 | 42 | |||||
Sales by segment | |||||||||
Europe incl. Middle East and Africa | 1,054 | 684 | 54 | 53 | |||||
Americas | 334 | 203 | 65 | 49 | |||||
Asia/Pacific | 219 | 205 | 7 | 1 | |||||
Licenses | 42 | 34 | 23 | 23 | |||||
Sales by distribution channel | |||||||||
Brick-and-mortar retail | 891 | 565 | 58 | 52 | |||||
Brick-and-mortar wholesale | 417 | 274 | 52 | 47 | |||||
Digital | 300 | 252 | 19 | 16 | |||||
Licenses | 42 | 34 | 23 | 23 | |||||
Sales by brand | |||||||||
BOSS Menswear | 1,305 | 886 | 47 | 43 | |||||
BOSS Womenswear | 104 | 77 | 34 | 31 | |||||
HUGO | 241 | 163 | 48 | 44 | |||||
Results of operations | |||||||||
Gross profit | 1,033 | 685 | 51 | ||||||
Gross margin in % | 62.6 | 60.9 | 170 bp | ||||||
EBIT | 140 | 43 | > 100 | ||||||
EBIT margin in % | 8.5 | 3.8 | 460 bp | ||||||
EBITDA | 310 | 194 | 60 | ||||||
EBITDA margin in % | 18.8 | 17.3 | 150 bp | ||||||
Net income attributable to equity holders | |||||||||
of the parent company | 82 | 14 | > 100 | ||||||
Net assets and liability structure as of June 30 | |||||||||
Trade net working capital | 507 | 517 | (2) | (11) | |||||
Trade net working capital in % of sales1 | 13.8 | 23.6 | (980) bp | ||||||
Non-current assets | 1,472 | 1,482 | (1) | ||||||
Equity | 1,006 | 792 | 27 | ||||||
Equity ratio in % | 35.3 | 30.8 | 450 bp | ||||||
Total assets | 2,847 | 2,571 | 11 | ||||||
Financial position | |||||||||
Capital expenditure | 61 | 44 | 39 | ||||||
Free cash flow | 99 | 103 | (4) | ||||||
Depreciation/amortization | 170 | 151 | 13 | ||||||
Net financial liabilities (as of June 30) | 687 | 973 | (29) | ||||||
Additional key figures | |||||||||
Employees (as of June 30)2 | 15,411 | 13,381 | 15 | ||||||
Personnel expenses | 383 | 285 | 34 | ||||||
Shares (in EUR) | |||||||||
Earnings per share | 1.18 | 0.21 | >100 | ||||||
Last share price (as of June 30) | 50.36 | 45.88 | 10 | ||||||
Number of shares (as of June 30) | 70,400,000 | 70,400,000 | 0 |
- Moving average on the basis of the last four quarters.
- Full-timeequivalent (FTE).
First Half Year Report 2022
CHAPTER 1
CONSOLIDATED
INTERIM
MANAGEMENT
REPORT
First Half Year Report 2022
General Economic Situation and Industry Development
Page 5
GENERAL ECONOMIC SITUATION AND INDUSTRY DEVELOPMENT
General economic situation
Overall, macroeconomic uncertainties have increased further in the course of the first half of the year. While the global recovery from the COVID-19 pandemic continued in most geographies, surging commodity prices on the back of the war in Ukraine, persisting bottlenecks in global supply chains, as well as a slowdown in China amid renewed pandemic-related restrictions weighed on the general economic situation. Elevated global inflation is forcing policy makers around the globe to raise interest rates, aimed at cooling price growth but risking tipping economies into recession. In addition, further disruption in the natural gas supply to Europe could add to recession risks in several key economies and trigger a global energy crisis.
Consequently, the International Monetary Fund (IMF) has cut its forecast for global economic growth again in July, which is now projected to slow from an estimated 6.1% in 2021 to 3.2% in 2022 and 2.9% in 2023. In the eurozone, economic growth is now expected to moderate towards 2.6% in 2022 (2021: 5.4%), while the IMF predicts that Great Britain will achieve 3.2% of growth (2021: 7.4%). For the U.S., the IMF anticipates growth to slow down to 2.3% in 2022 (2021: 5.7%), reflecting the
-related restrictions in China, the IMF has also cut its forecast for the Chinese economy, now predicting growth to come in at 3.3% in 2022, and thus well below the prior-year level (2021: 8.1%).
Industry development
In the first half of 2022, the global apparel industry continued its recovery from the COVID-19 pandemic, which had already been visible throughout most of 2021, although development varied across regions. Challenges included, in particular, the persistence of pandemic-related production delays, shortages in logistics, a further increase in material and freight costs, and the ongoing shortage of materials. This led to a sharp increase in input costs for many industries, leading companies to increase prices for consumers in times where consumer confidence across key markets is decreasing as overall inflation surges.
Industry growth in the first six months of 2022 was primarily driven by local demand, despite ongoing pandemic-related uncertainties in the wake of the long-lasting Omicron wave. In contrast, business with international tourists is recovering comparatively slowly, partly due to some persisting restrictions on international travel. Given long-lastingpandemic-related lockdowns in China through-
out much of the first half of the year, the Chinese consumer | which is particularly relevant for the |
premium and luxury segment of the global apparel market | has reduced spending in the first six |
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Hugo Boss AG published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 16:38:03 UTC.