Lanvin Group Holdings Limited · NYSE:LANV
Lanvin — FY2023 Earnings Presentation
45 slides from Lanvin's earnings presentation, Apr 30, 2024
Slide 1: Lanvin Group 2023 Full-Year Results
LANVIN GROUP 2023 FULL-YEAR RESULTS April 30, 2024
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements This presentation, including the sections “2024 GUIDANCE”, “BRAND-LEVEL PERFORMANCE” and “APPENDIX”, contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking
Slide 3: Building the New Luxury
BUILDING THE NEW LUXURY 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
Slide 4: Table of Contents
TABLE OF CONTENTS PAGE 7 A UNIQUE GLOBAL LUXURY PLATFORM PAGE 19 GROUP CONSOLIDATED FINANCIAL RESULTS PAGE 12 2023 KEY STRATEGIES AND ACHIEVEMENTS PAGE 27 BRAND-LEVEL PERFORMANCE 4
Slide 5: Overview of 2023 Achievements
OVERVIEW OF 2023 ACHIEVEMENTS RESILIENCY AND CONSISTENT DELIVERY OF STRATEGIES WERE KEY Revenue grew despite challenging markets; Lanvin brand 01 resilient through creative transition and improved its sales trend in the second half of 2023 02 Steady regional performance in EMEA and North America whi
Slide 6: Lanvin Group at a Glance
LANVIN GROUP AT A GLANCE 2023 2023 Greater China 2020-2023 Global Revenue Revenue Growth Global Revenue CAGR €426 mm +9% +24% 2023 vs. 2022 2023 vs. 2022 2023 vs. 2022 Gross Margin Change Contribution Profit%(1) Change Adj. EBITDA%(1) Change +254 bps +255 bps +198 bps Retail revenue resilient couple
Slide 7: Our Unique Global Platform and Resilient Strategies Delivered Growth
OUR UNIQUE GLOBAL PLATFORM AND RESILIENT STRATEGIES DELIVERED GROWTH. Source: Bain-Altagamma Luxury Goods Worldwide Market Study (Fall 2021-20th). Euromonitor. Section I 7
Slide 8: A Portfolio with Distinguished Provenance
A PORTFOLIO WITH DISTINGUISHED PROVENANCE… LANVIN GROUP’S BRANDS WORK TOGETHER TO BUILD A WARDROBE OF MODERN, GENERATIONAL LUXURY FOR ITS CONSUMERS BY SYNERGIZING EACH BRAND’S CREATIVITY AND CORE SKILLS IN DESIGN AND PRODUCTION SINCE SINCE 1889 1962 2023 Revenues – €90 million 2023 Revenues – €112 m
Slide 9: ...and Expansive Possibilities
…AND EXPANSIVE POSSIBILITIES KEY STRATEGIES AND INITIATIVES IN BRAND, PRODUCT, CHANNEL AND REGION CONTINUE TO PROMOTE GROWTH Refocused Brand Strategy Increased Brand Visibility Proven Category Initiatives Balanced Regional Growth Digital & Omnichannel • Back to brand DNAs and ethos • Continued inves
Slide 10: The Keys to Success
THE KEYS TO SUCCESS… NIMBLE DIGITAL START-UP UNICORN APPROACH MIND-SET VALUE TRACKRECORD 10
Slide 11: ...to Quickly Seize Opportunities
…TO QUICKLY SEIZE OPPORTUNITIES PROVEN RESULTS FROM SUCCESSFUL IMPLEMENTATION OF GROUP STRATEGIES 3.2X Lanvin 2020 – 2023 7.9X Lanvin 2020 – 2023 0 25% Wolford 2020 – 2023 Global Revenue Global Digital Revenue The % of W Collection in Seasonal Sales 1.9X Lanvin Group 2020 – 2023 1.7X Lanvin Group 20
Slide 12: Brands' Key Strategies and Achievements
BRANDS’ KEY STRATEGIES AND ACHIEVEMENTS
Slide 13: Lanvin
LANVIN 1 2 3 4 Successful Creative Leather Goods & The Launch of Further Retail Reorganization Accessories Lanvin Lab Expansion Reframed the creative strategy around a singular Enhanced leather goods and footwear with key An experimental space for the cultural Net increase of 5 stores, including Lan
Slide 14: Wolford
WOLFORD 1 2 3 4 Dedicated Balanced Product Targeted Digital & Omni- Communication Strategy Collaborations Channel Powerful FW23 campaign partnering with Successful pre-launch of W.O.W. Leggings that Capsule collections in collaboration with N°21 Innovative new store concept with unique Grace Jones;
Slide 15: St. John
ST. JOHN 1 2 3 4 Enhanced Product Retail Optimization Client Engagement Supply Chain Upgrade Offering Well-received Foundation collection and Strengthened brand presence by expanding Impactful #OwnYourPower campaign featuring Refined supply chain to improve gross margin strong performance in evening
Slide 16: Sergio Rossi
SERGIO ROSSI 1 2 3 4 New Image and Team Strong Product Launch Customer Interactions Targeted Development Targeted customer engagements through social Expanded horizons and reached new Released hit collections including iconic media campaigns, in-store activations, and Strategically increased presenc
Slide 17: Caruso
CARUSO 1 2 3 4 Business Expansion Margin Improvement Direct Reach Evolved Organization Ongoing account expansion and solid 30% Achieved Adjusted EBITDA breakeven; Launched e-Commerce with original, Significant human capital expansion, growth in revenue, a demonstration of grew the Caruso brand and p
Slide 18: 2024 Guidance
2024 GUIDANCE DRIVING PROFITABILITY Globally luxury market remains uncertain, but regions like North 01 America remain steady and growth is expected in the Middle East; e-Commerce also presents strong opportunities Group plans to approach the market tactically to capture 02 opportunities for growth
Slide 19: Group Consolidated Financial Results
GROUP CONSOLIDATED FINANCIAL RESULTS
Slide 20: Resiliency Key to Maintaining Growth Trend
RESILIENCY KEY TO MAINTAINING GROWTH TREND BRANDS MANAGED THROUGH MACRO-HEADWINDS TO CONTINUE GROUP GROWTH Revenue Growth Bridge by Brand 2020-2023 (€ in mm) €422 €9 €426 €1 €5 -€0 -€8 -€2 €309 €223 2020 2021 2022 Eliminations 2023 20
Slide 21: APAC Growth Underlies Market Potential
APAC GROWTH UNDERLIES MARKET POTENTIAL REGIONAL STRATEGY VALIDATION AND MARKET POTENTIAL SHOWN IN REGIONAL GROWTH DATA FY2023 Revenue Growth by Region (€ in mm) FY2023 Revenue Breakdown by Region (%) €4 €2 €426 €422 €2 Other(1) Greater +7% China -€4 +9% 6% 12% EMEA -2% 47% 2023 North 35% America +1%
Slide 22: Revenue Breakdown by Channel
REVENUE BREAKDOWN BY CHANNEL PERFORMANCE OF LANVIN BRAND IN JAPAN A TESTAMENT TO ITS APPEAL AND VALUE; REACQUISITION OF LICENSE ADDED ROYALTY INCOME FY2023 Revenue Growth by Channel (€ in mm) FY2023 Revenue Breakdown by Channel (%) €422 €7 €426 Other(1) +68% -€0 -€3 4% Wholesale -2% 38% 2023 DTC 58%
Slide 23: Continuous Store Network Optimization
CONTINUOUS STORE NETWORK OPTIMIZATION ONGOING UPGRADE OF STORE NETWORK, WITH DISCIPLINED NEW OPENINGS AND CLOSURES OF UNDERPERFORMING LOCATIONS Lanvin Group DOS Evolution by Brand Selected 2023 Newly Opened Boutiques Lanvin – Madison Ave, New York Sergio Rossi - Shenzhen Bay Lanvin Group DOS Evoluti
Slide 24: Constant Margin Improvement
CONSTANT MARGIN IMPROVEMENT YEAR-OVER-YEAR IMPROVEMENT IN THE GROUP’S GROSS PROFIT, CONTRIBUTION PROFIT AND ADJUSTED EBITDA MARGINS Lanvin Group Gross Profit Lanvin Group Contribution Profit(1) Lanvin Group Adjusted EBITDA(1) (€ in mm) (€ in mm) (€ in mm) GP% 53% 55% 56% 59% CP% -15% 1% 3% 6% Adj. E
Slide 25: Contribution Profit by Brand
CONTRIBUTION PROFIT BY BRAND Contribution Profit(1) Bridge by Brand 2022-2023 (€ in mm) €2 €24 €1 €1 €3 -€0 €4 €13 2022 HQ and 2023 Eliminations (1) Non-IFRS Financial Measure. Please see Page 45 for Non-IFRS Financial Measures and Definition. Note: HQ and eliminations are not allocated by brand and
Slide 26: Improved Working Capital Efficiency
IMPROVED WORKING CAPITAL EFFICIENCY Trade Working Capital (1) 2020-2023 (€ in mm) €85 €74 €74 €51 €109 €107 €92 €76 €40 €49 €46 €22 Trade payables Inventories -€47 -€58 Trade receivables -€73 -€79 2020Y202 0 2021 Y202 1 2022Y202 2 2023 Y202 3 Cash Conversion 134 123 113 98 Cycle(1) % of Revenues 23%
Slide 27: Brand-Level Performance
BRAND-LEVEL PERFORMANCE LANVIN GROUP
Slide 28: Lanvin 2023 Results and 2024 Guidance
LANVIN 2023 RESULTS AND 2024 GUIDANCE KEY HIGHLIGHTS • Revenue decreased by 7% during a creative transition; despite softening global luxury market in the second half of 2023, brand improved its sales trend from a H1 decrease of 11% to a decrease of 2% in H2 with strong sales of accessories and new
Slide 29: Wolford 2023 Results and 2024 Guidance
WOLFORD 2023 RESULTS AND 2024 GUIDANCE KEY HIGHLIGHTS • Revenue grew 1% to €126M in 2023; 35% growth in Greater China, slight decreases in EMEA, despite macroeconomic headwinds, and in North America due to exchange rate – growth of 2% at constant 2023 exchange rates • Wholesale revenue increased 11%
Slide 30: Sergio Rossi 2023 Results and 2024 Guidance
SERGIO ROSSI 2023 RESULTS AND 2024 GUIDANCE NM KEY HIGHLIGHTS • Revenue decreased slightly from €62M in 2022 to €60M in 2023, a 4% decrease • Growth driven by improving DTC revenue, particularly in Greater China with post- pandemic momentum, and focus on DTC operations and marketing; Wholesale reven
Slide 31: St. John 2023 Results and 2024 Guidance
ST. JOHN 2023 RESULTS AND 2024 GUIDANCE €4,595 €49 €90,398 €85,884 -€130 €73,094 KEY HIGHLIGHTS €66,512 • Revenue grew 5% to €90M in 2023 from continued DTC growth of 7%, building upon its achievements in 2023; as well as eCommerce growth of 14%; Wholesale revenue remained flat with continued refine
Slide 32: Caruso 2023 Results and 2024 Guidance
CARUSO 2023 RESULTS AND 2024 GUIDANCE NM KEY HIGHLIGHTS • Revenue grew 30% to €40M in 2023; and Caruso brand continued its growth trend, with business nearly doubling in two years due to the appeal of its playful elegance approach to high-end tailoring, and unmatched quality and price ratio • B2B Ma
Slide 33: Appendix
APPENDIX LANVIN GROUP
Slide 34: Lanvin Group Consolidated Income Statement
LANVIN GROUP CONSOLIDATED INCOME STATEMENT (€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2023A Lanvin Group Consolidated P&L FY % FY % FY % FY % Revenue 222,612 100% 308,822 100% 422,312 100% 426,178 100% Cost of sales -105,218 -47% -138,920 -45% -184,368 -44% -175,236 -41% Gross profit
Slide 35: Lanvin Group Consolidated Balance Sheet
LANVIN GROUP CONSOLIDATED BALANCE SHEET (€ in Thousands, unless otherwise noted) (€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2023A 2020A 2021A 2022A 2023A Lanvin Group Consolidated Balance Sheet Lanvin Group Consolidated Balance Sheet FY FY FY FY FY FY FY FY Assets Liabilities Non-cur
Slide 36: Lanvin Group Consolidated Cash Flow
LANVIN GROUP CONSOLIDATED CASH FLOW 36
Slide 37: Lanvin Brand Key Financials
LANVIN BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2020A 2021A 2022A 2023A 2021 A v 2022 A v 2023 A v 20-23 Lanvin Brand Key Financials FY % FY % FY % FY % 2020 A 2021 A 2022 A CAGR Key Financials on P&L Revenues 34,989 100% 72,872 100% 119,847 100% 111,740 100% 108% 64% -7% 47% Gr
Slide 38: Wolford Brand Key Financials
WOLFORD BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2020A 2021A 2022A 2023A 2021 A v 2022 A v 2023 A v 20-23 Wolford Brand Key Financials FY % FY % FY % FY % 2020 A 2021 A 2022 A CAGR Key Financials on P&L Revenues 95,384 100% 109,332 100% 125,514 100% 126,280 100% 15% 15% 1% 10% G
Slide 39: Sergio Rossi Brand Key Financials
SERGIO ROSSI BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2021PF 2021A 2022A 2023A 2022 A v 2022 A v 2023 A v 21-23 Sergio Rossi Brand Key Financials FY % FY % FY % FY % 2021 PF 2021 A 2022 A CAGR Key Financials on P&L Revenues 59,206 100% 28,737 100% 61,929 100% 59,518 100% 5% 116%
Slide 40: St. John Brand Key Financials
ST. JOHN BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2020A 2021A 2022A 2023A 2021 A v 2022 A v 2023 A v 20-23 St.John Brand Key Financials FY % FY % FY % FY % 2020 A 2021 A 2022 A CAGR Key Financials on P&L Revenues 66,512 100% 73,094 100% 85,884 100% 90,398 100% 10% 17% 5% 11% Gro
Slide 41: Caruso Brand Key Financials
CARUSO BRAND KEY FINANCIALS (€ in thousands, unless otherwise noted) 2020A 2021A 2022A 2023A 2021 A v 2022 A v 2023 A v 21-23 Caruso Brand Key Financials FY % FY % FY % FY % 2020 A 2021 A 2022 A CAGR Key Financials on P&L Revenues 26,351 100% 24,695 100% 30,819 100% 40,011 100% -6% 25% 30% 15% Gross
Slide 42: Lanvin Group Brand Footprint
LANVIN GROUP BRAND FOOTPRINT 2021 2022 2023 Footprint By Brand (1) (2) (1) (2) DOS POS DOS POS DOS POS Lanvin 27 287 31 339 36 319 Wolford 167 227 163 225 150 201 St. John 48 133 46 106 45 107 Sergio Rossi 50 328 50 346 48 289 Caruso 1 144 1 189 0 183 Total 293 1,119 291 1,205 279 1,099 (1) DOS refe
Slide 43: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES (€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2023A Reconciliation of Contribution Margin FY FY FY FY Revenue 222,612 308,822 422,312 426,178 Cost of sales -105,218 -138,920 -184,368 -175,236 Gross profit 117,394 169,902 237,944 250,942 Marketing and selling
Slide 44: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES (€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2023A Reconcilation of Adjusted EBIT and EBITDA FY FY FY FY Loss for the year -135,657 -76,452 -239,751 -146,253 Add / (Deduct) the impact of: Income tax benefits / (expenses) -1,603 4,331 -129 3,407 Finance cost
Slide 45: Non-IFRS Financial Measures and Definition
NON-IFRS FINANCIAL MEASURES AND DEFINITION Our management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: contribution profit, contribution profit margin, Adjusted EBIT and Adjusted EBITDA. Our management believes that these non-IFRS fi