Lanvin Group Holdings Limited · NYSE:LANV
Lanvin — H1 2023 Earnings Presentation
36 slides from Lanvin's earnings presentation, Aug 30, 2023
Slide 1: 2023 First Half Results
2023 FIRST HALF RESULTS August 30, 2023
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements This presentation, including the sections “2023 First Half Achievements”, “2023 Outlook”, “Brand-Level Performance” and “Appendix”, contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Refor
Slide 3: Building the New Luxury
BUILDING THE NEW LUXURY LANVIN GROUP
Slide 4: 2023 First Half Achievements
2023 FIRST HALF ACHIEVEMENTS Solid Overall Growth Across All Channels 01 and Regions Improved Margins and Breakeven on Track; 02 Significant Operating Leverage Built Lanvin Creative Transition - Foundation Set 03 for the Future 04 New Creative Director at Wolford 05 Reacquisition of Lanvin Japan Tra
Slide 5: Lanvin Group's Numbers at a Glance
LANVIN GROUP’S NUMBERS AT A GLANCE H1 23 H1 23 Global H1 23 Greater China Global Revenue Revenue Growth Revenue Growth €215 mm +6.4% +13.9% H1 23 vs. H1 22 H1 23 vs. H1 22 H1 23 vs. H1 22 Gross Profit Margin Change Contribution Profit%(1) Change Adj. Operating Profit%(1) Change +258 bps +398 bps +58
Slide 6: Revenue Bridge by Brand
REVENUE BRIDGE BY BRAND LANVIN FIRST HALF REVENUES WERE LOWER DUE TO CREATIVE TRANSITION; ALL OTHER BRANDS SHOWED NOTABLE GROWTH Revenue Growth Bridge by Brand H1 2021-H1 2023(€ in mm) €5 €5 € 215 € 202 €6 €5 -€ 1 -€ 7 € 117 H1 2021 H1 2022 Eliminations H1 2023 • Lanvin’s revenue was lower mainly du
Slide 7: Regional and Channel Growth
REGIONAL AND CHANNEL GROWTH H1 23 Revenue Growth by Region (€ in mm) H1 23 Revenue Breakdown by Region (%) €3 €215 Other(1) €2 €3 Greater €5 +27.1% China €202 5.6% +13.9% 12.2% H1 23 48.4% EMEA North +5.3% 33.8% America +2.6% H1 23 Revenue Growth by Channel (€ in mm) H1 23 Revenue Breakdown by Chann
Slide 8: H1 Brand Highlights (1/3)
H1 BRAND HIGHLIGHTS (1/3) LANVIN: REAFFIRMED BRAND POSITIONING AND SUCCESSFUL CREATIVE REORGANIZATION 1 Well Received Fall/Winter 2 Integration of Global 3 Successful Creative 4 Lanvin Lab 1st Guest Designer 2023 Fashion Show Trademark Reorganization - Future The collection is a rediscovery of Frenc
Slide 9: H1 Brand Highlights (2/3)
H1 BRAND HIGHLIGHTS (2/3) INCREASED BRAND VOICE THROUGH IMPACTFUL MARKETING CAMPAIGNS 1Wolford Presented Powerful 2 Sergio Rossi 3Wolford W Club for Women 4 St. John x Shonda Rhimes Campaign with Grace Jones the ‘‘High Heel Project’’ Empowerment #OwnYourPower As a legendary singer and style icon, Gr
Slide 10: H1 Brand Highlights (3/3)
H1 BRAND HIGHLIGHTS (3/3) ONGOING PRODUCT INNOVATION WITH NEW CREATIVE POWER AND BRAND COLLABORATIONS 1 Wolford Onboarded Nao 2 St. John Partnered with 3 Sergio Rossi Launched Special 4 Wolford Launched Special Takekoshi as Creative Director Celebrity Stylist Karla Welch Capsule with AREA Capsule wi
Slide 11: Prioritizing Margin Improvement
PRIORITIZING MARGIN IMPROVEMENT PERIOD-OVER-PERIOD IMPROVEMENT IN THE GROUP’S GROSS PROFIT AND CONTRIBUTION PROFIT MARGINS Lanvin Group Gross Profit Lanvin Group Contribution Profit(1) Lanvin Group Adjusted EBITDA(1) (€ in mm) (€ in mm) (€ in mm) GP% 51.8% 55.9% 58.5% CP% -8.7% 2.9% 6.9% Adj. EBITDA
Slide 12: Contribution Profit Continues to Grow
CONTRIBUTION PROFIT CONTINUES TO GROW Contribution Profit(1) Bridge by Brand H1 2022-H1 2023 (€ in mm) €1 € 15 (2) €1 €2 -€ 1 €6 €6 -€ 1 HQ and H1 2022 HI 2023 Eliminations (1) These are Non-IFRS Financial Measures and will be mentioned throughout this presentation. Please see Page 36 for Non-IFRS F
Slide 13: Margin Evolution
MARGIN EVOLUTION LANVIN GROUP IS A STORY OF CONSISTENT GROWTH, MARGIN IMPROVEMENT, AND A HISTORICALLY STRONG SECOND HALF Lanvin Group Revenue Growth Lanvin Group Gross Profit % Evolution Lanvin Group Contribution Profit (1) % (Semi-annual, € in mm) Evolution H1 21 - H1 23 CAGR: +667 bps +1559 bps +3
Slide 14: Opex % Continues to Improve
OPEX % CONTINUES TO IMPROVE OPEX % Incidence on Revenue H1 2021-H1 2023 G&A expenses(€ in mm) Marketing and selling expenses(€ in mm) % of Revenue 107.4% 90.5% 87.2% 200 € 183 € 188 180 160 € 77 € 76 140 € 126 120 100 € 55 80 60 € 107 € 111 40 € 71 20 0 H1 2021 H1 2022 H1 2023 14
Slide 15: Retail Optimization Nears Completion
RETAIL OPTIMIZATION NEARS COMPLETION ONGOING UPGRADE OF STORE NETWORK, WITH DISCIPLINED NEW OPENINGS AND CLOSURES OF UNDERPERFORMING LOCATIONS Lanvin Group DOS Evolution by Brand Selected Recently Opened and Upgraded Boutiques 4 4 1 291 3 282 -21 Lanvin – New York Madison Avenue Sergio Rossi – Beiji
Slide 16: 2023 Outlook
2023 OUTLOOK DRIVING TOPLINE GROWTH AND MARGIN IMPROVEMENT Momentum to continue in 2023 with China growth and improving 01 US economy; planned marketing initiatives to support second- half growth Continued focus on driving topline to promote economies of 02 scale, inventory management, and operating
Slide 17: Brand-Level Performance
BRAND-LEVEL PERFORMANCE LANVIN GROUP
Slide 18: Lanvin 2023 H1 Results
LANVIN 2023 H1 RESULTS • Revenue was lower by 10.8% from €64mm in H1 2022 to €57mm in H1 2023 − Decrease mainly driven by creative transition in H1 2023; but foundation is now set for the future of the brand − Additionally, fewer product and marketing initiatives in H1 2023 versus prior year contrib
Slide 19: Wolford 2023 H1 Results
WOLFORD 2023 H1 RESULTS • Revenue grew 8.4% from €54mm in H1 2022 to €59mm in H1 2023 − 46.7% growth in Greater China driven by DTC and new franchise stores; Strong growth in North America at 10.3% driven by DTC channel improvement − Growth also driven by price increases and strong sales of athleisu
Slide 20: Sergio Rossi 2023 H1 Results
SERGIO ROSSI 2023 H1 RESULTS • Revenue grew 22.4% from €27mm in H1 2022 to €33mm in H1 2023 − Strong regional growth with EMEA growing at 29.5%, North America at 31.5%, and Greater China at 20.9% − DTC growth at 15.0% and wholesale at 31.3%; growth in wholesale driven by increased production orders
Slide 21: St. John 2023 H1 Results
ST. JOHN 2023 H1 RESULTS • Revenue grew 11.3% from €42mm in H1 2022 to €47mm in H1 2023 − 23.8% growth in DTC channel with revenue increasing from €30mm in H1 2022 to €38mm in H1 2023 − Wholesale decreased by 22.8% from €11mm in H1 2022 to €9mm in H1 2023, as St. John continues to modify its channel
Slide 22: Caruso 2023 H1 Results
CARUSO 2023 H1 RESULTS • Revenue grew 33.6% from €15mm in H1 2022 to €20mm in H1 2023 − Robust client roster for its B2B Maisons manufacturing business drove significant growth − The brand also had a strong reception to its Caruso collection which also saw strong revenue growth • EMEA continues to b
Slide 23: Appendix
APPENDIX | “) Z | \ LANVIN GROUP | \ /
Slide 24: Lanvin Group Consolidated Income Statement
LANVIN GROUP CONSOLIDATED INCOME STATEMENT (€ in Thousands, unless otherwise noted) 2021 2022 2023 Lanvin Group Consolidated P&L H1 % H1 % H1 % Revenue 116,882 100.0% 201,700 100.0% 214,537 100.0% Cost of sales -56,327 -48.2% -88,957 -44.1% -89,083 -41.5% Gross Profit 60,555 51.8% 112,743 55.9% 125,
Slide 25: Lanvin Group Consolidated Balance Sheet
LANVIN GROUP CONSOLIDATED BALANCE SHEET (€ in Thousands, unless otherwise noted) (€ in Thousands, unless otherwise noted) 2022 2023 2022 2023 Lanvin Group Consolidated Balance Sheet Lanvin Group Consolidated Balance Sheet FY H1 FY H1 Assets Liabilities Non-current liabilities Non-current assets Non-
Slide 26: Lanvin Group Consolidated Cash Flow
LANVIN GROUP CONSOLIDATED CASH FLOW (€ in Thousands, unless otherwise noted) 2021 2022 2023 Lanvin Group Consolidated Cash Flow H1 H1 H1 Net cash used in operating activities -33,903 -51,825 -58,118 Net cash used in investing activities -3,498 -5,556 -28,531 Net cash generated from financing activit
Slide 27: Lanvin Brand Key Financials
LANVIN BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2021 2022 2023 22 H1 v 23 H1 v 21 H1 - 23 H1 Lanvin Brand Key Financials H1 % H1 % H1 % 21 H1 22 H1 CAGR Key Financials on P&L Revenue 29,471 100.0% 63,949 100.0% 57,052 100.0% 117.0% -10.8% 39.1% Gross Profit 14,502 49.2% 30,048 4
Slide 28: Wolford Brand Key Financials
WOLFORD BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2021 2022 2023 2022 H1 v 2023 H1 v 21 H1 - 22 H1 Wolford Brand Key Financials H1 % H1 % H1 % 2021 H1 2022 H1 CAGR Key Financials on P&L Revenue 41,941 100.0% 54,261 100.0% 58,802 100.0% 29.4% 8.4% 18.4% Gross Profit 26,916 64.2% 3
Slide 29: Sergio Rossi Brand Key Financials
SERGIO ROSSI BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2022 2023 23 H1 v SR Brand Key Financials H1 % H1 % 22 H1 Key Financials on P&L Revenue 26,969 100.0% 33,019 100.0% 22.4% Gross Profit 14,798 54.9% 17,135 51.9% Selling and distribution expenses -11,180 -41.5% -11,355 -34.4%
Slide 30: St. John Brand Key Financials
ST. JOHN BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2021 2022 2023 22 H1 v 23 H1 v 21 H1 - 23 H1 St.John Brand Key Financials H1 % H1 % H1 % 21 H1 22 H1 CAGR Key Financials on P&L Revenue 33,373 100.0% 41,924 100.0% 46,663 100.0% 25.6% 11.3% 18.2% Gross Profit 16,406 49.2% 25,754
Slide 31: Caruso Brand Key Financials
CARUSO BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2021 2022 2023 22 H1 v 23 H1 v 21 H1 - 23 H1 Caruso Brand Key Financials H1 % H1 % H1 % 21 H1 22 H1 CAGR Key Financials on P&L Revenue 12,328 100.0% 14,919 100.0% 19,926 100.0% 21.0% 33.6% 27.1% Gross Profit 2,533 20.5% 3,731 25.0%
Slide 32: Lanvin Group Brand Footprint
LANVIN GROUP BRAND FOOTPRINT Jun 2022 Dec 2022 Jun 2023 DOS by Brand (1) (2) (1) (2) DOS (1) DOS (1) DOS (1) Lanvin 28 31 32 Wolford 167 163 156 St. John 48 46 44 Sergio Rossi 48 50 50 Caruso 1 1 0 Total 292 291 282 (1) DOS refers to Directly Operated Stores which include boutiques, outlets, concess
Slide 33: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES (€ in Thousands, unless otherwise noted) 2021 2022 2023 Reconciliation of Contribution Profit H1 H1 H1 Revenue 116,882 201,700 214,537 Cost of sales -56,327 -88,957 -89,083 Gross Profit 60,555 112,743 125,454 Marketing and selling expenses -70,683 -106,810 -110,600 Contri
Slide 34: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES (€ in Thousands, unless otherwise noted) 2021 2022 2023 Reconciliation of Adjusted EBIT H1 H1 H1 Loss for the year -68,628 -68,714 -72,225 Add / (Deduct) the impact of: Income tax expenses 461 -256 271 Finance cost—net 5,119 8,080 11,970 Non-underlying items -467 -570 -9,
Slide 35: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES (€ in Thousands, unless otherwise noted) 2021 2022 2023 Reconciliation of Adjusted EBITDA H1 H1 H1 Loss from operations before non-underlying items -63,515 -61,460 -69,650 D&A post IFRS16 20,554 23,094 21,518 Provision and impairment losses 5,651 6,500 -3,241 FX (gain)/lo
Slide 36: Non-IFRS Financial Measures and Definitions
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 bel
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