Lanvin Group Posts Revenue of EUR171 million in H1 2024

Global Challenges Impact First-Half Results

    --  Group Revenue was EUR171 million for H1 2024, a 20% decrease over H1
        2023
    --  Group Gross profit margin remained steady, declining just 1% to 57.5%,
        and Lanvin, St. John and Caruso all showed marked gross profit margin
        improvement from better full-price sell-through and strategic inventory
        management
    --  Global luxury market softness particularly impacted revenue in EMEA and
        Greater China; as did the Wholesale Channel; Lanvin brand showed strong
        growth in APAC, outside of Greater China, with 9% growth
    --  Wolford revenue and margin was impacted by a significant shipping delay
        due to integration issues with a new logistics provider; and Sergio
        Rossi saw a planned rationalization of third-party production resulting
        in lower revenue
    --  Strategic actions were taking in H1 2024 to ensure our brands' long-term
        competitiveness globally, including the appointment of Peter Copping as
        Lanvin's new Artistic Director; appointment of Regis Rimbert as
        Wolford's CEO; and the optimization of production and supply chain
        management for Sergio Rossi
    --  Adjusted EBITDA held steady, decreasing only EUR1 million,
        period-over-period due to proactive cost management initiatives
    --  All brands remained committed to improving cost structure while
        continuing to tactically invest in marketing for upcoming campaigns

NEW YORK, Aug. 26, 2024 /PRNewswire/ -- Lanvin Group (NYSE: LANV, the "Group"), a global luxury fashion group with Lanvin, Wolford, Sergio Rossi, St. John and Caruso in its portfolio of brands, today announced its results for the first half of 2024. Despite facing macroeconomic pressures in the global luxury market, the Group continued to drive its innovative strategies and remained focused on the long-term development of its brands.

The Group achieved revenue of EUR171 million, a 20% decrease period-over-period versus 2023. Nonetheless, the Group continued to demonstrate operational stability and strong cost control through proactive strategic adjustments. With effective measures to improve cost efficiency across brands, Gross profit was at EUR98 million, maintaining a 57.5% gross profit margin, reflecting Lanvin Group's resilience and its potential for sustainable growth in a challenging environment.

Zhen Huang, Chairman of Lanvin Group, said: "We faced a tumultuous market in the first half of 2024. While we anticipate this will continue for the near-term, we remain committed to the long-term growth of our Group and our path to profitability."

Eric Chan, CEO of Lanvin Group, said: "Struggles in the wholesale channel compounded the issues of a softening global luxury market, in the first half of 2024. We spent much of the first half committed to our marketing plan, but also prioritized rationalizing our cost base to fit the current market environment. Furthermore, we are committed to our product strategy and investing in product development, which is why we are excited to have the new creative leaders who have joined our family. While we will be proactive in our approach to the near-term slowdown, we remain resolute in investing in our brands to forge our path forward, and to capitalize on our momentum as the markets improve."

Review of the First Half 2024 Results



         
              Lanvin Group Revenue by Brand                         
     
              Revenue                                  Growth %    CAGR %


         
              EUR
               in Thousands, unless otherwise
    noted


                          
            
              2022                    2023             2024              2023H          2024H

                                                                                                             1               1           '22 H1 -
                                                                                    vs                vs         '24 H1
                                                                              2022H             2023H

                                                                                   1                  1


                                               H1                       H1              H1





         Lanvin                                                    63,949           57,052               48,272         -10.8 %           -15.4 %  -13.1 %



         Wolford                                                   54,261           58,802               42,594           8.4 %           -27.6 %  -11.4 %



         St. John                                                  41,924           46,663               39,981          11.3 %           -14.3 %   -2.3 %



         Sergio Rossi                                              26,969           33,019               20,404          22.4 %           -38.2 %  -13.0 %



         Caruso                                                    14,919           19,926               19,734          33.6 %            -1.0 %   15.0 %



         Total Brand                                              202,022          215,462              170,985           6.7 %           -20.6 %   -8.0 %





         Eliminations                                                -322             -925                   -9         187.3 %           -99.0 %  -83.3 %



         
              Total Group                                   201,700          214,537              170,976           6.4 %           -20.3 %   -7.9 %



              
                Lanvin Group Consolidated P&L         2022            2023             2024
    EUR in Thousands, unless otherwise
    noted


                                                    H1          %     H1       %       H1       %





              Revenue                                    201,700 100.0 % 214,537   100.0 % 170,976    100.0 %



              Gross profit                               112,743  55.9 % 125,454    58.5 %  98,378     57.5 %



              Contribution profit                          5,933   2.9 %  14,854     6.9 %  -7,213     -4.2 %



              Adjusted EBITDA                            -35,519 -17.6 % -40,916   -19.1 % -42,111    -24.6 %

Selected Highlights

Continued cost efficiency initiatives effective in maintaining Gross profit margin: Gross profit margin for the Group decreased by 1% due to effective efforts to improve cost efficiencies. Better full-price sell-through, inventory management, and channel mix changes drove gross profit margin up 2% at Lanvin, up 7% at St. John, and up nearly 3% at Caruso. Despite lower revenue, Sergio Rossi maintained relatively flat gross profit margin, and Wolford's gross profit margin was mainly impacted by delays from integration with a new logistics provider that resulted in an inability to absorb fixed production costs.

Group Adjusted EBITDA declined only 3%, period-over-period: In the face of strong topline challenges, the Group's Adjusted EBITDA decreased from EUR41 million to a EUR42 million loss due to effective and timely cost reduction initiatives at the brand level. The Group provided resources and coordinated with brand executives in the first half to manage through the difficult market conditions.

Lanvin announces new Artistic Director: In June 2024, Lanvin announced that Peter Copping will be joining the brand in the second half of the year as the new Artistic Director. Mr. Copping brings to the brand and business a passion for and deep understanding of Lanvin's heritage and a wealth of industry experience. He will lead the creative direction of both women's and menswear and introduce his vision for Lanvin in 2025.

New personnel announcement: Wolford appointed Regis Rimbert as the new CEO of the brand in June 2024. Mr. Rimbert brings over 20 years of experience in the fashion industry, where he has led transformative initiatives in retail, online, and international operations.

Lanvin Lab 2.0: Lanvin successfully launched the second edition of Lanvin Lab with a collaboration with acclaimed contemporary artist, Erwin Wurm. Lanvin's iconic Pencil Cat Bag and Cash sneaker were incorporated into a monumental sculpture currently on a five-city tour throughout Greater China.

Review of First Half 2024 Financials

Revenue

For H1 2024, the Group generated revenue of EUR171 million, a 20% decrease period-over-period. DTC channel revenue decreased by 14% and Wholesale revenue by 30%. Other revenue growth comprised of royalty and clearance income decreased 15% due to Lanvin's reduction of clearance inventory. Regional revenue declined in EMEA by 27% and Greater China at 24% (Asia excluding Greater China decreased by 7%), and North America by 11%.

The main drivers of the decline in revenue were global market softness coupled with a struggling wholesale market. Additionally, Wolford had an integration issue with its new logistic provider which significantly delayed shipments, and Sergio Rossi had a strategically planned reduction in third-party production, both of which also contributed to the revenue decline.

Gross Profit

Gross profit was EUR98 million, representing a 58% margin versus EUR125 million for H1 2023 at a margin of 59%. The Group continues to focus on scale, product mix improvements and distribution management to drive the gross profit margin expansion.

Contribution Profit((1))

Contribution profit was -EUR7 million. While cost reduction initiatives were undertaken, the Group was committed to investing in marketing spend with the long-term brand momentum in mind, resulting in a lower contribution profit.

Adjusted EBITDA

Adjusted EBITDA for the Group declined to -EUR42 million versus -EUR41 million for H1 2023, resulting from lower revenue, but offset by a reduction of fixed general and administrative expenses, decreasing from 36% to 34% of revenue. In the first half, the Group was able to effectively implement cost reductions to mitigate the revenue impact.

Results by Segment

Lanvin: Revenue decreased from EUR57 million in H1 2023 to EUR48 million in H1 2024, mainly due to a slowdown in global luxury consumption coupled with a challenging wholesale market. Retail including boutique and outlet was down only 3%, while the overall DTC channel declined by 10%; and Wholesale by 23%.

Globally, EMEA saw the largest decrease at 21%, driven by a decrease in European wholesale receipts. North America and APAC declined by 9% with Greater China at 14%; APAC excluding Greater China generated positive 9% growth.

Gross profit decreased to EUR28 million from EUR32 million. Gross profit margin increased from 56% to 58%, due to increased full-price sell-through and strategic inventory management. Contribution profit declined from a contribution loss of EUR5 million in H1 2023 to a contribution loss of EUR9 million in H1 2024.

In June 2024, Lanvin announced the September arrival of Peter Copping as Artistic Director. The house intends to propel the brand momentum from this significant appointment in the development and marketing of Mr. Copping's debut collection launch in 2025.

For the balance of 2024, Lanvin is aggressively executing initiatives to increase retail and digital traffic and implement operational cost efficiencies to improve DTC profitability. The brand will continue to emphasize its leather goods and accessories offer and will further build out its seasonless carryover product offer across categories.

Wolford: Revenue declined by 28% from EUR59 million in H1 2023 to EUR43 million in H1 2024. The decrease was mainly drive by integration issues with its new logistics provider that resulted in significant delays in shipments. Additionally, the challenging wholesale market in Europe also impacted revenue.

On a channel-basis, DTC decreased by 14% and Wholesale by 53%. Geographically, EMEA saw the largest decrease at 34%, North America by 10%, and APAC by 24% with Greater China seeing a 20% decline.

Gross profit margin decreased to 63% from 72% due to the logistics issues as well as a planned liquidation of excess inventory. Contribution loss was EUR8 million.

In the first half, Wolford made a number of personnel changes, most notably, the appointment of Regis Rimbert as CEO. Mr. Rimbert's experience operating in luxury fashion is extensive and he will drive second half initiatives to implement a sustainable cost model by transforming supply chain and distribution, as well as focus on brand positioning and marketing, and improve the client experience.

Sergio Rossi: Revenue declined from EUR33 million in H1 2023 to EUR20 million in H1 2024, or 38%. The brand had a 49% decline in its largest market, EMEA, and 22% in APAC with Greater China decreasing by 34%. The revenue impact was due to continued softness in wholesale as well as a planned reduction of third-party production. The DTC channel was down 17% overall and e-Commerce by 2%. Wholesale, which includes third-party production, decreased by 60%.

Gross profit margin landed at 50%, relatively flat from H1 2023, due to the change in channel mix with the decline in wholesale revenue, including the reduction of third-party production. Contribution profit declined from EUR6 million to EUR1 million. The revenue impact was mitigated by cost control initiatives to maintain positive contribution profit.

For the second half of 2024, the brand will drive cost efficiencies through planned initiatives and supply chain improvements. Sergio Rossi also plans to continue to right-size its retail fleet and overhead.

The brand also plans to emphasize new marketing initiatives celebrating its heritage and renowned shoe archive with the anticipated arrival of the new Creative Director, Paul Andrew. The brand announced in July 2024, that Paul Andrew will join Sergio Rossi in the second half.

St. John: Revenue decreased from EUR47 million in H1 2023 to EUR40 million in H1 2024, a decline of 14%. The revenue impact was consistent across the distribution channels with DTC, including e-Commerce declining by 15%; and Wholesale by 13%. North America, by far its largest market, decreased by 10%, while APAC, which represents less than 10% of revenue, was down 46%, due to general market softness.

Gross profit margin was significantly higher growing from 62% to 69% due to increased full-price sell-through and better channel mix. Contribution profit margin remained steady at 12% from improved marketing efficiency mitigating the decline in revenue.

For the second half of 2024, the brand will continue to push its "basics" product lines and further refine its retail network and overhead.

Caruso: Despite a challenging global luxury and wholesale environment, Caruso maintained flat revenue with a 1% decline. Caruso's Maisons business, its third-party production unit showed some softness, but it was offset by its propriety Caruso brand business which grew by 21% with strong sales of its ready-to-wear and made-to-measure products.

Gross profit increased from EUR5 million to EUR6 million, and gross profit margin increased from 26% to 29% from improved in-house production efficiencies and a reduction of outsourcing. Contribution profit also increased from EUR4 million to EUR5 million, and contribution profit margin increased from 22% to 24%.

For the remainder of 2024, the brand will continue to expand its B2B Maisons business with new client development programs.

2024 Full-Year Outlook

The Group expects a challenging second half of 2024, but will remain proactive in its cost-reduction and operating efficiency efforts. Lanvin and Sergio Rossi plan to further emphasize marketing initiatives to forge their creative paths for 2025 with the additions of Peter Copping and Paul Andrew, respectively.

Lanvin Group will continue to focus on revenue expansion opportunities through marketing campaigns to maintain brand momentum and with a tactical approach to expand its store network.



     Note: All % changes are calculated on an actual currency exchange rate basis.



     Note: This communication includes certain non-IFRS financial measures such as Contribution Profit, Contribution Profit Margin, Adjusted Operating Profit, adjusted earnings before interest and taxes ("Adjusted EBIT"), and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Please see Use of Non-IFRS Financial Metrics and Non-IFRS Financial Measures and Definition.



     
                (1) Contribution Profit defined as Gross Profit less Selling and Marketing Expenses

Semi-Annual Report

Our semi-annual report, including the interim condensed consolidated financial statements as of and for the six months ended June 30, 2024, can be downloaded from the Company's investor relations website (ir.lanvin-group.com) under the section Financials / SEC Filings, or from the SEC's website (www.sec.gov).

Conference Call

As previously announced, today at 8:00AM EST/8:00PM CST/2:00PM CET, Lanvin Group will host a conference call to discuss its results for the first half of 2024 and provide an outlook for the remainder of the year. Management will refer to a slide presentation during the call, which will be made available on the day of the call. To view the presentation, please visit the "Events" tab of the Group's investor relations website at https://ir.lanvin-group.com.

All participants who would like to join the conference call must pre-register using the link provided below. Once the registration is complete, participants will receive dial-in numbers, a passcode, and a registrant ID which can be used to join the conference call. Participants may register at any time, including up to and after the call starts.

Registration Link:
https://dpregister.com/sreg/10191932/fd4d899a20

A replay of the conference call will be accessible approximately one hour after the live call until September 2, 2024, by dialing the following numbers:



     US Toll Free:       1-877-344-7529



     International Toll: 1-412-317-0088



     Canada Toll Free:   855-669-9658



     Replay Access Code:        9453870

A recorded webcast of the conference call and a slide presentation will also be available on the Group's investor relations website at https://ir.lanvin-group.com.

About Lanvin Group

Lanvin Group is a leading global luxury fashion group headquartered in Shanghai, China, managing iconic brands worldwide including Lanvin, Wolford, Sergio Rossi, St. John Knits, and Caruso. Harnessing the power of its unique strategic alliance of industry-leading partners in the luxury fashion sector, Lanvin Group strives to expand the global footprint of its portfolio brands and achieve sustainable growth through strategic investment and extensive operational know-how, combined with an intimate understanding and unparalleled access to the fastest-growing luxury fashion markets in the world. Lanvin Group is listed on the New York Stock Exchange under the ticker symbol 'LANV'. For more information about Lanvin Group, please visit www.lanvin-group.com, and to view our investor presentation, please visit https://ir.lanvin-group.com.

Forward-Looking Statements

This communication, including the section "2024 Full-Year Outlook", contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," "project" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of the respective management of Lanvin Group and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and must not be relied on by an investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Lanvin Group. Potential risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, changes adversely affecting the business in which Lanvin Group is engaged; Lanvin Group's projected financial information, anticipated growth rate, profitability and market opportunity may not be an indication of its actual results or future results; management of growth; the impact of COVID-19 or similar public health crises on Lanvin Group's business; Lanvin Group's ability to safeguard the value, recognition and reputation of its brands and to identify and respond to new and changing customer preferences; the ability and desire of consumers to shop; Lanvin Group's ability to successfully implement its business strategies and plans; Lanvin Group's ability to effectively manage its advertising and marketing expenses and achieve desired impact; its ability to accurately forecast consumer demand; high levels of competition in the personal luxury products market; disruptions to Lanvin Group's distribution facilities or its distribution partners; Lanvin Group's ability to negotiate, maintain or renew its license agreements; Lanvin Group's ability to protect its intellectual property rights; Lanvin Group's ability to attract and retain qualified employees and preserve craftmanship skills; Lanvin Group's ability to develop and maintain effective internal controls; general economic conditions; the result of future financing efforts; and those factors discussed in the reports filed by Lanvin Group from time to time with the SEC. If any of these risks materialize or Lanvin Group's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Lanvin Group presently does not know, or that Lanvin Group currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Lanvin Group's expectations, plans, or forecasts of future events and views as of the date of this communication. Lanvin Group anticipates that subsequent events and developments will cause Lanvin Group's assessments to change. However, while Lanvin Group may elect to update these forward-looking statements at some point in the future, Lanvin Group specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Lanvin Group's assessments of any date subsequent to the date of this communication. Accordingly, reliance should not be placed upon the forward-looking statements.

Use of Non-IFRS Financial Metrics

This communication includes certain non-IFRS financial measures such as Contribution Profit, Contribution Profit Margin, Adjusted Operating Profit, adjusted earnings before interest and taxes ("Adjusted EBIT"), and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). These non-IFRS measures are an addition, and not a substitute for or superior to measures of financial performance prepared in accordance with IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS. Reconciliations of non-IFRS measures to their most directly comparable IFRS counterparts are included in the Appendix to this communication. Lanvin Group believes that these non-IFRS measures of financial results provide useful supplemental information to investors about Lanvin Group. Lanvin Group believes that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing Lanvin Group's financial measures with other similar companies, many of which present similar non-IFRS financial measures to investors. However, there are a number of limitations related to the use of these non-IFRS measures and their nearest IFRS equivalents. For example, other companies may calculate non-IFRS measures differently, or may use other measures to calculate their financial performance, and therefore Lanvin Group's non-IFRS measures may not be directly comparable to similarly titled measures of other companies. Lanvin Group does not consider these non-IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-IFRS financial measures is that they exclude significant expenses, income and tax liabilities that are required by IFRS to be recorded in Lanvin Group's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgements by Lanvin Group about which expense and income are excluded or included in determining these non-IFRS financial measures. In order to compensate for these limitations, Lanvin Group presents non-IFRS financial measures in connection with IFRS results.

Enquiries:

Media
Lanvin Group
Kimberly Zhang
kimberly.zhang@lanvin-group.com

Investors
Lanvin Group
James Kim
james.kim@lanvin-group.com

Appendix


                                                                                 
     
     Lanvin Group Consolidated Income Statement





         
                
                  (EUR in Thousands, unless otherwise noted)





         
                Lanvin Group Consolidated P&L                                                                           2022             2023              2024


                                                          H1                                           %                           H1        %       H1        %





         
                Revenue                                                                   201,700                       100.0 %  214,537   100.0 %  170,976    100.0 %



         Cost of sales                                                                          -88,957                       -44.1 %  -89,083   -41.5 %  -72,598    -42.5 %





         
                Gross Profit                                                              112,743                        55.9 %  125,454    58.5 %   98,378     57.5 %



         Marketing and selling expenses                                                        -106,810                       -53.0 % -110,600   -51.6 % -105,591    -61.8 %



         General and administrative expenses                                                    -75,771                       -37.6 %  -76,544   -35.7 %  -58,065    -34.0 %



         Other operating income and expenses                                                      8,378                         4.2 %   -7,960    -3.7 %    5,457      3.2 %





         
                Loss from operations before non-underlying                                -61,460                       -30.5 %  -69,650   -32.5 %  -59,821    -35.0 %
    items



         Non-underlying items                                                                       570                         0.3 %    9,666     4.5 %    3,143      1.8 %





         
                Loss from operations                                                      -60,890                       -30.2 %  -59,984   -28.0 %  -56,678    -33.1 %



         Finance cost - net                                                                      -8,080                        -4.0 %  -11,970    -5.6 %  -13,187     -7.7 %





         
                Loss before income tax                                                    -68,970                       -34.2 %  -71,954   -33.5 %  -69,865    -40.9 %



         Income tax benefits / (expenses)                                                           256                         0.1 %     -271    -0.1 %      489      0.3 %





         
                Loss for the period                                                       -68,714                       -34.1 %  -72,225   -33.7 %  -69,376    -40.6 %





         Contribution Profit (1)                                                                  5,933                         2.9 %   14,854     6.9 %   -7,213     -4.2 %



         Adjusted Operating Profit (1)                                                          -69,838                       -34.6 %  -61,690   -28.8 %  -65,278    -38.2 %



         Adjusted EBIT (1)                                                                      -57,163                       -28.3 %  -67,679   -31.5 %  -58,994    -34.5 %



         Adjusted EBITDA (1)                                                                    -35,519                       -17.6 %  -40,916   -19.1 %  -42,111    -24.6 %


                        
              
                Lanvin Group Consolidated Balance Sheet





     
                
                  (EUR in Thousands, unless otherwise noted)




                   Lanvin Group Consolidated Balance Sheet                                  2023     2024


                                                     FY                                       H1



     
                Assets



     
                Non-current assets



     Intangible assets                                                                  210,439  211,818



     Goodwill                                                                            69,323   69,323



     Property, plant and equipment                                                       43,731   42,972



     Right-of-use assets                                                                128,853  139,126



     Deferred income tax assets                                                          13,427   12,905



     Other non-current assets                                                            15,540   15,383


                                                                                         481,313  491,527



     
                Current assets



     Inventories                                                                        107,184  106,809



     Trade receivables                                                                   45,657   35,436



     Other current assets                                                                25,650   25,487



     Cash and bank balances                                                              28,130   18,308


                                                                                         206,621  186,040



     
                Total Assets                                                          687,934  677,567



     
                Liabilities



     
                Non-current liabilities



     Non-current borrowings                                                              32,381   28,070



     Non-current lease liabilities                                                      112,898  120,250



     Non-current provisions                                                               3,174    3,932



     Employee benefits                                                                   17,972   17,320



     Deferred income tax liabilities                                                     52,804   51,623



     Other non-current liabilities                                                       14,733   15,021


                                                                                         233,962  236,216



     
                Current liabilities



     Trade payables                                                                      78,576   81,052



     Bank overdrafts                                                                        280      429



     Current borrowings                                                                  35,720   98,219



     Current lease liabilities                                                           32,871   35,649



     Current provisions                                                                   6,270    5,273



     Other current liabilities                                                          134,627  128,005


                                                                                         288,344  348,627



     
                Total Liabilities                                                     522,306  584,843



     
                Net assets                                                            165,628   92,724



     
                Equity



     Equity attributable to owners of the Company



     Share capital                                                                         *(2)    *(2)



     Treasury shares                                                                    -65,405  -55,991



     Other reserves                                                                     806,677  793,990



     Accumulated losses                                                                -571,931 -629,248


                                                                                         169,341  108,751



     Non- controlling interests                                                          -3,713  -16,027



     
                Total Equity                                                          165,628   92,724


                                                                       
              
        Lanvin Group Consolidated Cash Flow





     
                
                  (EUR in Thousands, unless otherwise noted)





     
                Lanvin Group Consolidated Cash Flow                                                                        2022    2023    2024


                                                                                    H1                                          H1     H1





     Net cash used in operating activities                                                                                -51,825 -58,118 -33,483



     Net cash used in investing activities                                                                                 -5,556 -28,531  -3,780



     Net cash flows generated from financing activities                                                                    17,465  26,396  26,646



     
                Net change in cash and cash equivalents                                                                 -39,916 -60,253 -10,617





     Cash and cash equivalents less bank overdrafts at the beginning of the period                                         88,658  91,749  27,850



     Effect of foreign exchange differences on cash and cash equivalents                                                    2,185    -649     646



     
                Cash and cash equivalents less bank overdrafts at end of the period                                      50,927  30,847  17,879


                                                                                   
        
         Lanvin Brand Key Financials
     
              (3)





              
                
                  (EUR in thousands, unless otherwise noted)




                            Lanvin Brand                                              2022                                  2023                 2024              23 H1             24 H1          22 H1 -
    Key Financials                                                                                                                                           v                 v
                                                                                                                                                                                                 24 H1
                                                                                                                                                               22 H1             23 H1
                                                                                                                                                                                                  CAGR


                                 H1                                 %                     H1                    %                H1           %




                            Key Financials
    on P&L



              Revenues                                        63,949                 100.0 %               57,052            100.0 %      48,272    100.0 %           -10.8 %           -15.4 %          -13.1 %


               Gross Profit                                    30,048                  47.0 %               31,959             56.0 %      28,004     58.0 %


               Selling and                                    -34,360                 -53.7 %              -36,793            -64.5 %     -37,389    -77.5 %
    distribution
    expenses


               Contribution                                    -4,312                  -6.7 %               -4,834             -8.5 %      -9,385    -19.4 %
    Profit (1)




                            Revenues by
    Geography



              EMEA                                            34,779                  54.4 %               29,443             51.6 %      23,154     48.0 %           -15.3 %           -21.4 %          -18.4 %


               North America                                   15,255                  23.9 %               13,195             23.1 %      11,981     24.8 %           -13.5 %            -9.2 %          -11.4 %


               Greater China                                   12,362                  19.3 %               11,092             19.4 %       9,527     19.7 %           -10.3 %           -14.1 %          -12.2 %



              Other                                            1,553                   2.4 %                3,322              5.8 %       3,610      7.5 %           113.9 %             8.7 %           52.5 %




                            Revenues by
    Channel



              DTC                                             30,879                  48.3 %               26,780             46.9 %      24,072     49.9 %           -13.3 %           -10.1 %          -11.7 %


               Wholesale                                       30,799                  48.2 %               23,022             40.4 %      17,639     36.5 %           -25.2 %           -23.4 %          -24.3 %



              Other                                            2,271                   3.6 %                7,250             12.7 %       6,561     13.6 %           219.3 %            -9.5 %           70.0 %


                                                                                   
       
          Wolford Brand Key Financials
     
              (3)





              
                
                  (EUR in thousands, unless otherwise noted)




                            Wolford Brand                                             2022                                   2023                 2024              23 H1             24 H1          22 H1 -
    Key Financials                                                                                                                                            v                 v
                                                                                                                                                                                                  24 H1
                                                                                                                                                                22 H1             23 H1
                                                                                                                                                                                                   CAGR


                                  H1                                 %                    H1                     %                H1           %




                            Key Financials
    on P&L



              Revenues                                         54,261                100.0 %                58,802            100.0 %      42,594    100.0 %             8.4 %           -27.6 %          -11.4 %


               Gross Profit                                     38,383                 70.7 %                42,062             71.5 %      26,795     62.9 %


               Selling and                                     -40,337                -74.3 %               -38,128            -64.8 %     -34,916    -82.0 %
    distribution
    expenses


               Contribution                                     -1,954                 -3.6 %                 3,934              6.7 %      -8,121    -19.1 %
    Profit (1)




                            Revenues by
    Geography



              EMEA                                             38,202                 70.4 %                40,083             68.2 %      26,453     62.1 %             4.9 %           -34.0 %          -16.8 %


               North America                                    12,891                 23.8 %                14,224             24.2 %      12,747     29.9 %            10.3 %           -10.4 %           -0.6 %


               Greater China                                     2,799                  5.2 %                 4,107              7.0 %       3,274      7.7 %            46.7 %           -20.3 %            8.2 %



              Other                                               370                  0.7 %                   388              0.7 %         120      0.3 %             4.9 %           -69.1 %          -43.0 %




                            Revenues by
    Channel



              DTC                                              39,102                 72.1 %                39,453             67.1 %      33,812     79.4 %             0.9 %           -14.3 %           -7.0 %


               Wholesale                                        14,557                 26.8 %                18,665             31.7 %       8,715     20.5 %            28.2 %           -53.3 %          -22.6 %



              Other                                               602                  1.1 %                   684              1.2 %          67      0.2 %            13.6 %           -90.2 %          -66.6 %


                                                                                
         
            Sergio Rossi Brand Key Financials
       
           (3)





              
                
                  (EUR in thousands, unless otherwise noted)




                            Sergio Rossi                                               2022                                       2023                2024              23 H1             24 H1          22 H1 -
    Brand Key                                                                                                                                                     v                 v
    Financials                                                                                                                                                                                        24 H1
                                                                                                                                                                    22 H1             23 H1
                                                                                                                                                                                                       CAGR


                                 H1                                 %                      H1                       %                  H1          %




                            Key Financials
    on P&L



              Revenues                                        26,969                  100.0 %                  33,019              100.0 %     20,404    100.0 %            22.4 %           -38.2 %          -13.0 %


               Gross Profit                                    14,798                   54.9 %                  17,135               51.9 %     10,218     50.1 %


               Selling and                                    -11,180                  -41.5 %                 -11,355              -34.4 %     -9,490    -46.5 %
    distribution
    expenses


               Contribution                                     3,618                   13.4 %                   5,780               17.5 %        728      3.6 %
    Profit (1)




                            Revenues by
    Geography



              EMEA                                            14,267                   52.9 %                  18,509               56.0 %      9,528     46.7 %            29.7 %           -48.5 %          -18.3 %


               North America                                      643                    2.4 %                     846                2.6 %        281      1.4 %            31.5 %           -66.8 %          -33.9 %


               Greater China                                    5,252                   19.5 %                   6,350               19.2 %      4,174     20.5 %            20.9 %           -34.3 %          -10.8 %



              Other                                            6,808                   25.2 %                   7,315               22.2 %      6,420     31.5 %             7.5 %           -12.2 %           -2.9 %




                            Revenues by
    Channel



              DTC                                             14,650                   54.3 %                  16,847               51.0 %     13,976     68.5 %            15.0 %           -17.0 %           -2.3 %


               Wholesale                                       12,319                   45.7 %                  16,172               49.0 %      6,428     31.5 %            31.3 %           -60.3 %          -27.8 %



              Other                                                0                    0.0 %                       0                0.0 %          0      0.0 %                NM                NM               NM


                                                                                   
      
           St. John Brand Key Financials
     
              (3)





              
                
                  (EUR in thousands, unless otherwise noted)




                            St. John Brand                                            2022                                    2023                 2024              23 H1             24 H1          22 H1 -
    Key Financials                                                                                                                                             v                 v
                                                                                                                                                                                                   24 H1
                                                                                                                                                                 22 H1             23 H1
                                                                                                                                                                                                    CAGR


                                   %                                 H1                   %                      %                H1           %




                            Key Financials
    on P&L



              Revenues                                           41,924              100.0 %                 46,663            100.0 %      39,981    100.0 %            11.3 %           -14.3 %           -2.3 %


               Gross Profit                                       25,754               61.4 %                 29,024             62.2 %      27,696     69.3 %


               Selling and                                       -21,167              -50.5 %                -23,719            -50.8 %     -23,036    -57.6 %
    distribution
    expenses


               Contribution                                        4,587               10.9 %                  5,305             11.4 %       4,660     11.7 %
    Profit (1)




                            Revenues by
    Geography



              EMEA                                                  343                0.8 %                    731              1.6 %         299      0.7 %           113.2 %           -59.1 %           -6.6 %


               North America                                      39,130               93.3 %                 41,585             89.1 %      37,316     93.3 %             6.3 %           -10.3 %           -2.3 %


               Greater China                                       2,283                5.4 %                  4,251              9.1 %       2,247      5.6 %            86.2 %           -47.1 %           -0.8 %



              Other                                                 168                0.4 %                     96              0.2 %         119      0.3 %           -42.8 %            24.8 %          -15.8 %




                            Revenues by
    Channel



              DTC                                                30,493               72.7 %                 37,760             80.9 %      32,161     80.4 %            23.8 %           -14.8 %            2.7 %



              Wholesale                                          11,431               27.3 %                  8,828             18.9 %       7,704     19.3 %           -22.8 %           -12.7 %          -17.9 %



              Other                                                   0                0.0 %                     75              0.2 %         116      0.3 %                NM            55.3 %               NM


                                                                                 
      
     Caruso Brand Key Financials
            
     (3)





     
                
                  (EUR in thousands, unless otherwise noted)





     
                Caruso Brand Key Financials                                         2022                                   2023            2024              23 H1             24 H1          22 H1 -
                                                                                                                                                          v                 v
                                                                                                                                                                                              24 H1
                                                                                                                                                            22 H1             23 H1
                                                                                                                                                                                               CAGR


                                        H1                                        %        H1                          %           H1      %





     
                Key Financials on P&L



     Revenues                                                               14,919    100.0 %                     19,926       100.0 % 19,734    100.0 %            33.6 %            -1.0 %           15.0 %



     Gross Profit                                                            3,731     25.0 %                      5,233        26.3 %  5,723     29.0 %



     Selling and distribution expenses                                        -668     -4.5 %                       -842        -4.2 %   -936     -4.7 %



     Contribution Profit (1)                                                 3,063     20.5 %                      4,391        22.0 %  4,787     24.3 %





     
                Revenues by Geography



     EMEA                                                                   11,380     76.2 %                     16,260        81.6 % 16,795     85.1 %            42.9 %             3.3 %           21.5 %



     North America                                                           2,710     18.2 %                      2,674        13.4 %  2,003     10.1 %            -1.3 %           -25.1 %          -14.0 %



     Greater China                                                             219      1.5 %                         32         0.2 %     18      0.1 %           -85.5 %           -43.4 %          -71.3 %



     Other                                                                     610      4.1 %                        960         4.8 %    918      4.7 %            57.3 %            -4.4 %           22.7 %





     
                Revenues by Channel



     DTC                                                                         0      0.0 %                          0         0.0 %     31      0.2 %                NM                NM               NM



     Wholesale                                                              14,919    100.0 %                     19,926       100.0 % 19,703     99.8 %            33.6 %            -1.1 %           14.9 %



     Other                                                                       0      0.0 %                          0         0.0 %      0      0.0 %                NM                NM               NM


                     
              
     Lanvin Group Brand Footprint




                   DOS by Brand                 Jun 2023       Dec 2023  Jun 2024


                      DOS (4)                   DOS (4)        DOS (4)





     Lanvin                                          32              36         37



     Wolford                                        156             150        140



     St. John                                        44              45         42



     Sergio Rossi                                    50              48         47



     Caruso                                           0               0          0


                   Total                             282             279        266


                                            
              
                Non-IFRS Financial Measures Reconciliation





     
                
                  (EUR in Thousands, unless otherwise noted)



     
                Reconciliation of Contribution Profit                                                           2022     2023     2024


                                                             H1                                                      H1      H1





     
                Revenue                                                                                      201,700  214,537  170,976



     Cost of sales                                                                                             -88,957  -89,083  -72,598



     
                Gross Profit                                                                                 112,743  125,454   98,378



     Marketing and selling expenses                                                                           -106,810 -110,600 -105,591



     
                Contribution Profit (1)                                                                        5,933   14,854   -7,213



     General and administrative expenses                                                                       -75,771  -76,544  -58,065



     
                Adjusted Operating Profit (1)                                                                -69,838  -61,690  -65,278





     
                Reconciliation of Adjusted EBIT                                                                 2022     2023     2024


                                                             H1                                                      H1      H1





     
                Loss for the period                                                                          -68,714  -72,225  -69,376



     Add / (Deduct) the impact of:



     Income tax expenses                                                                                          -256      271     -489



     Finance cost-net                                                                                            8,080   11,970   13,187



     Non-underlying items                                                                                         -570   -9,666   -3,143



     
                Loss from operations before non-underlying items                                             -61,460  -69,650  -59,821



     Add / (Deduct) the impact of:



     Share based compensation                                                                                    4,297    1,971      827



     
                Adjusted EBIT (1)                                                                            -57,163  -67,679  -58,994





     
                Reconciliation of Adjusted EBITDA                                                               2022     2023     2024


                                                             H1                                                      H1      H1





     
                Loss from operations before non-underlying items                                             -61,460  -69,650  -59,821



     D&A post IFRS16                                                                                            23,094   21,518   22,456



     Provision and impairment losses                                                                             6,500   -3,241   -2,220



     FX (gains)/losses                                                                                          -7,950    8,486   -3,353



     ESOP                                                                                                        4,297    1,971      827



     
                Adjusted EBITDA (1)                                                                          -35,519  -40,916  -42,111



     Note:



     (1)  These are Non-IFRS Financial Measures and will be mentioned throughout this communication. Please see Non-IFRS Financial Measures and Definition.



     (2)  The amount less than Euro 1,000 is indicated with "*".



     (3)  Brand-level results are presented exclusive of eliminations.



     (4)  DOS refers to Directly Operated Stores which include boutiques, outlets, concession shop-in-shops and pop-up stores.

Non-IFRS Financial Measures and Definitions

Our management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: Contribution Profit, Contribution Profit Margin, Adjusted Operating Profit, Adjusted EBIT and Adjusted EBITDA. Our management believes that these non-IFRS financial measures provide useful and relevant information regarding our performance and improve their ability to assess financial performance and financial position. They also provide comparable measures that facilitate management's ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions. While similar measures are widely used in the industry in which we operate, the financial measures that we use may not be comparable to other similarly named measures used by other companies nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS.

Contribution Profit is defined as revenue less the cost of sales and selling and marketing expenses. Contribution Profit subtracts the main variable expenses of selling and marketing expenses from Gross Profit, and our management believes this measure is an important indicator of profitability at the marginal level. Below contribution profit, the main expenses are general administrative expenses and other operating expenses (which include foreign exchange gains or losses and impairment losses). As we continue to improve the management of our portfolio brands, we believe we can achieve greater economy of scale across the different brands by maintaining the fixed expenses at a lower level as a proportion of revenue. We therefore use Contribution Profit Margin as a key indicator of profitability at the group level as well as the portfolio brand level.

Contribution Profit Margin is defined as Contribution Profit divided by revenue.

Adjusted Operating Profit is defined as Contribution Profit margin less General and administrative expenses

Adjusted EBIT is defined as profit or loss before income taxes, net finance cost, share based compensation, adjusted for income and costs which are significant in nature and that management considers not reflective of underlying operational activities, mainly including net gains on disposal of long-term assets, negative goodwill from acquisition of Sergio Rossi, gain on debt restructuring and government grants.

Adjusted EBITDA is defined as profit or loss before income taxes, net finance cost, exchange gains/(losses), depreciation, amortization, share based compensation and provisions and impairment losses adjusted for income and costs which are significant in nature and that management considers not reflective of underlying operational activities, mainly including net gains on disposal of long-term assets, negative goodwill from acquisition of Sergio Rossi, gain on debt restructuring and government grants.

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SOURCE Lanvin Group