Hudson Group Reports Preliminary Fourth Quarter and Full Year 2018 Organic Growth in Line with Expectations

EAST RUTHERFORD, N.J.–(BUSINESS WIRE)–Hudson Ltd. (NYSE: HUD) (“Hudson Group” or “Company”), a leader in North
American travel retail, today commented on its preliminary fourth
quarter and full year 2018 net sales ahead of its participation at the
2019 ICR Conference.

Preliminary full year 2018 organic net sales results are in line with
the Company’s expectations and long-term growth targets.

For the fourth quarter and full year 2018, the Company expects to report
that:

  • Fourth quarter net sales increased $19.8 million or 4.5% to $459.8
    million from the year-ago period; full year net sales increased $121.2
    million or 6.9% to $1,882.0 million compared to the prior year;
  • Fourth quarter organic net sales growth, which is a combination of
    like-for-like net sales growth and net new business and expansions,
    was 4.6%, compared to 9.4% in the year-ago period; full year organic
    net sales growth was 7.1%, compared to 8.8% in 2017;
  • Fourth quarter like-for-like growth was 1.7% (2.5% in constant
    currency), compared to 5.6% (4.5% in constant currency) in the
    year-ago period. Full year like-for-like growth was 3.7% (3.7% in
    constant currency), compared to 4.8% (4.4% in constant currency) in
    2017;
  • Fourth quarter like-for-like growth was impacted by a 0.8% currency
    headwind versus a 1.1% currency tailwind in the prior year period.

The Company plans to report results for the fourth quarter and year
ending December 31, 2018, on March 14, 2019.

The fourth quarter and full year data presented above is based on
preliminary estimates and has not been audited. As such, it may be
subject to change once our financial statements for 2018 are finalized.
Moreover, our expectation for fourth quarter and full year 2018 net
sales should not be taken as an indication of our expectation for fourth
quarter or full year 2018 results of operations more generally.

About Hudson Group

Hudson Group (NYSE: HUD), a Dufry Company and one of the largest travel
retailers in North America, is committed to enhancing the travel
experience for over 300,000 travelers every day in the continental
United States and Canada. The Company is anchored by its iconic Hudson,
Hudson News and Hudson Bookseller brands and operates over 1,000
duty-paid and duty-free stores in 87 locations, including airports,
commuter terminals, hotels and some of the most visited landmarks and
tourist destinations in the world. Our wide range of store concepts
include travel essentials and convenience stores, bookstores, duty-free
shops, branded specialty stores, electronics stores, and quick-service
food and beverage outlets. For more information, visit www.hudsongroup.com
and www.dufry.com.

Non-IFRS and Other Measures:

Organic net sales growth represents the combination of growth in
aggregate monthly sales from (i) like-for-like net sales growth and (ii)
net new business and expansions. Like-for-like growth represents the
growth in aggregate monthly net sales in the applicable period at stores
that have been operating for at least 12 months. Like-for-like growth
excludes growth attributable to (i) net new business and expansions
until such stores have been part of our business for at least 12 months,
(ii) acquired stores until such stores have been part of our business
for at least 12 months and (iii) acquired wind-down stores, consisting
of eight stores acquired in the 2014 acquisition of The Nuance Group AG
(“Nuance”) and 46 stores acquired in the 2015 acquisition of World Duty
Free S.p.A. (“World Duty Free Group”) that management expected, at the
time of the applicable acquisition, to wind down. Net new business and
expansions consists of growth from (i) changes in the total number of
our stores (other than acquired stores), (ii) changes in the retail
space of our existing stores and (iii) modification of store retail
concepts through rebranding. Net new business and expansions excludes
growth attributable to (i) acquired stores until such stores have been
part of our business for at least 12 months and (ii) acquired wind-down
stores. Like-for-like growth in constant currency is calculated by
keeping exchange rates constant for each month being compared from
period to period. We believe that the presentation of like-for-like
growth in constant currency basis assists investors in comparing period
to period operating results as it removes the effect of fluctuations in
foreign exchange rates.

Forward-Looking Statements

This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995 (Reform
Act). Forward-looking statements are based on our beliefs and
assumptions and on information currently available to us, and include,
without limitation, statements regarding our business, financial
condition, strategy, results of operations, certain of our plans,
objectives, assumptions, expectations, prospects and beliefs and
statements regarding other future events or prospects. Forward-looking
statements include all statements that are not historical facts and can
be identified by the use of forward-looking terminology such as the
words “believe,” “expect,” “plan,” “intend,” “seek,” “anticipate,”
“estimate,” “predict,” “potential,” “assume,” “continue,” “may,” “will,”
“should,” “could,” “shall,” “risk” or the negative of these terms or
similar expressions that are predictions of or indicate future events
and future trends. By their nature, forward-looking statements involve
risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution you
that forward-looking statements are not guarantees of future performance
and that our actual results of operations, financial condition and
liquidity, the development of the industry in which we operate and the
effect of acquisitions on us may differ materially from those made in or
suggested by the forward looking statements contained in this press
release. In addition, even if our results of operations, financial
condition and liquidity, the development of the industry in which we
operate and the effect of acquisitions on us are consistent with the
forward-looking statements contained in this press release, those
results or developments may not be indicative of results or developments
in subsequent periods. Forward-looking statements speak only as of the
date they are made, and we do not undertake any obligation to update
them in light of new information or future developments or to release
publicly any revisions to these statements in order to reflect later
events or circumstances or to reflect the occurrence of unanticipated
events. Factors that may cause our actual results to differ materially
from those expressed or implied by the forward-looking statements in
this press release, or that may impact our business and results more
generally, include, but are not limited to, the risks described under
“Item 3. Key Information—D. Risk factors” of our Annual Report on Form
20-F for the year ended December 31, 2017 which may be accessed through
the SEC’s website at https://www.sec.gov/edgar.
You should read these risk factors before making an investment in our
shares.