Lanvin Group Holdings Limited · NYSE:LANV
Lanvin — H1 2024 Earnings Presentation
35 slides from Lanvin's earnings presentation, Aug 26, 2024
Slide 1: 2024 First Half Results
2074 FIRST HALF RESULTS
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation, including the sections “2024 First Half Achievements”, “2024 Outlook”, “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 19
Slide 3: Building the New Luxury
BUILDING THE NEW LUXURY LANVIN GROUP
Slide 4: Global macro-economic headwinds were impactful
Global macro-economic headwinds were impactful Appointment of Artistic Director at Lanvin and Creative Director at Sergio Rossi Integration challenges of Wolford’s new 3PL provider resulted in significant shipping issues Wholesale market challenges contributed to majority of the revenue decrease Gro
Slide 5: First Half Achievements
FIRST HALF ACHIEVEMENTS • Peter Copping introduced as • Successful launch of W.O.W • First flagship store opened in • Successful client events with • New AAA fashion maison upcoming Artistic Director leggings across all channels Dubai Mall; future store opening Central Park Conservancy and account g
Slide 6: Drive cost-efficiency initiatives to maintain margin improvement
DRIVE COST-EFFICIENCY INITIATVES TO MAINTAIN MARGIN IMPROVEMENT Hired new brand managers to facilitate cost-efficiency measures Focused planning for first collections with new creative/artistic directors; to provide boost to wholesale channel in 2025 Further reduction of cost base and culling of ret
Slide 7: New initiatives to support its brands
THE GROUP IS WORKING ON NEW INITIATIVES TO SUPPORT ITS BRANDS Partnerships for Middle East expansion as Partnerships for product category Further synergizing back-office functions well as building investor network expansion opportunities and global to reduce overhead costs and improve logistics supp
Slide 8: H1 24 Key Metrics
H1 24 H1 24 Global H1 24 Wholesale Global Revenue Revenue Growth Revenue Growth H1 24 vs. H1 23 H1 24 vs. H1 23 H1 24 vs. H1 23 Gross Profit Margin Change Contribution Profit %(1) Change Adj. EBITDA Period-over-Period Change(1) (1) These are Non-IFRS Financial Measures and will be mentioned througho
Slide 9: First half revenue impacted by macro trends and wholesale challenges
FIRST HALF REVENUE WAS IMPACTED BY MACROECONOMIC TRENDS AND CHALLENGES IN THE WHOLESALE CHANNEL € 215 € 202 -€ 9 -€ 16 €1 € 171 -€ 13 -€ 7 -€ 0 € 117 H1 2021 H1 2022 H1 2023 Eliminations H1 2024 • Ongoing wholesale market weakness was leading driver of revenue decline • Additions of new creative tal
Slide 10: Revenue by region and channel
€215 Other(1) Greater -7.4% €171 China -€28 -24.2% 6.5% -€8 -€6 -€1 11.6% 44.3% EMEA North -27.1% America 37.6% -11.3% €215 Other(1) €171 -15.4% -€16 -€26 -€1 4.0% Wholesale -30.3% 34.9% DTC -13.6% 61.2% (1) Other includes: Japan, South Korea, Thailand, Malaysia, Vietnam, Indonesia, Philippines, Aus
Slide 11: Change in gross profit and contribution profit margins
CHANGE IN GROUP’S GROSS PROFIT AND CONTRIBUTION PROFIT MARGINS Adj. GP% 51.8% 55.9% 58.5% 57.5% CP% -8.7% 2.9% 6.9% -4.2% -30.7% -17.6% -19.1% -24.6% EBITDA% € 125 H1 21 H1 22 H1 23 H1 24 € 15 € 113 € 98 €6 -€ 36 -€ 36 € 61 H1 21 H1 22 H1 23 H1 24 -€ 7 -€ 41 -€ 10 -€ 42 H1 21 H1 22 H1 23 H1 24 • Gro
Slide 12: G&A expenses by brand
H1 2023 G&A expenses (€ in mm) H1 2024 G&A expenses (€ in mm) 25 YoY -29% -11% -9% -20% -4% Improvement € 20 20 € 16 € 14 € 14 15 € 14 € 11 € 11 € 10 10 €5 €4 5 0 12
Slide 13: G&A and marketing and selling expenses
G&A expenses(€ in mm) Marketing and selling expenses(€ in mm) % of Revenue 107.4% 90.5% 87.2% 95.7% 200 € 188 € 183 180 € 164 160 € 77 € 76 140 € 126 € 58 120 100 € 55 80 60 € 107 € 111 € 106 40 € 71 20 0 (1) H1 2021 H1 2022 H1 2023 H1 2024 (1) H1 2021 Group-level financials did not include Sergio R
Slide 14: Ongoing upgrade of store network
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 Total FY23 H1 24 Closures Lanvin – Cannes Lanvin - Hangzhou Lanvin Group DOS Evolution by Region Sergio Rossi
Slide 15: Drive cost-efficiencies
DRIVE COST-EFFICIENCIES Implement action plan to further reduce costs and improve margins Tactical approach to marketing and footprint expansion; focusing on ROI Build the brand story at Lanvin and Sergio Rossi with new creative leaders 15 15
Slide 16: Brand-Level Performance
BRAND-LEVEL PERFORMANCE LANVIN GROUP
Slide 17: Lanvin H1 results
H1 Results • Revenue decreased by 15% due to macro headwinds, contracting wholesale network and absence of an artistic director, but APAC, excluding Greater China grew 9% – Wholesale was the biggest contributor to the decline; includes bookings from 2023 when the channel stress commenced – While the
Slide 18: Wolford H1 results
H1 Results • Revenue down 28%, impacted 3PL transition issues and wholesale trends (53% decline in Wholesale); Retail and eCommerce down 14% and 12% − EMEA accounted for majority of decline due to tough European wholesale market − Key driver of the decline was 3PL transition causing shipping delays;
Slide 19: Sergio Rossi H1 results
H1 Results • Revenue declined 38%, with Wholesale as the driver (60% decrease) − EMEA, the largest market, had the most significant decrease with European wholesale conditions contributing to majority of the decline − Decline partly due to planned reduction of lower-margin third-party production − E
Slide 20: St. John H1 results
H1 Results • Revenue down 14% from H1 2023 with comparable impact across all channels − North America, industry-wide, outperformed other regions, helping St. John maintain relative revenue stability (93% of revenue generated in North America) − APAC retail declined 46%, while North American retail d
Slide 21: Caruso H1 results
H1 Results • Revenue was flat in a challenging global luxury and wholesale environment − Decline of 1% driven by slowdown in Maisons business − Caruso brand business grew 21% with robust performance in ready-to-wear and made-to-measure services • Gross Margin increased to 29% from improved in-house
Slide 22: Appendix
APPENDIX LANVIN GROUP
Slide 23: Lanvin Group Consolidated P&L
(€ in Thousands, unless otherwise noted) 2022 2023 2024 Lanvin Group Consolidated P&L 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 -1
Slide 24: Lanvin Group Consolidated Balance Sheet
(€ in Thousands, unless otherwise noted) (€ in Thousands, unless otherwise noted) 2023 2024 2023 2024 Lanvin Group Consolidated Balance Sheet Lanvin Group Consolidated Balance Sheet FY H1 FY H1 Assets Liabilities Non-current assets Non-current liabilities Intangible assets 210,439 211,818 Non-curren
Slide 25: Lanvin Group Consolidated Cash Flow
(€ in Thousands, unless otherwise noted) 2022 2023 2024 Lanvin Group Consolidated Cash Flow 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 generated from financing activities 17,465 26,396 26,646 Net change
Slide 26: Lanvin Brand Key Financials
(€ in thousands, unless otherwise noted) 2022 2023 2024 23 H1 v 24 H1 v 22 H1 - 24 H1 Lanvin Brand Key Financials H1 % H1 % H1 % 22 H1 23 H1 CAGR Key Financials on P&L Revenue 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 a
Slide 27: Wolford Brand Key Financials
(€ in thousands, unless otherwise noted) 2022 2023 2024 23 H1 v 24 H1 v 22 H1 - 24 H1 Wolford Brand Key Financials H1 % H1 % H1 % 22 H1 23 H1 CAGR Key Financials on P&L Revenue 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 an
Slide 28: Sergio Rossi Brand Key Financials
(€ in thousands, unless otherwise noted) 2022 2023 2024 23 H1 v 24 H1 v 22 H1 - 24 H1 SR Brand Key Financials H1 % H1 % H1 % 22 H1 23 H1 CAGR Key Financials on P&L Revenue 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 di
Slide 29: St. John Brand Key Financials
(€ in thousands, unless otherwise noted) 2022 2023 2024 23 H1 v 24 H1 v 22 H1 - 24 H1 St.John Brand Key Financials H1 % H1 % H1 % 22 H1 23 H1 CAGR Key Financials on P&L Revenue 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 an
Slide 30: Caruso Brand Key Financials
(€ in thousands, unless otherwise noted) 2022 2023 2024 23 H1 v 24 H1 v 22 H1 - 24 H1 Caruso Brand Key Financials H1 % H1 % H1 % 22 H1 23 H1 CAGR Key Financials on P&L Revenue 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 dis
Slide 31: DOS by Brand
Jun 2023 Dec 2023 Jun 2024 DOS by Brand (1) (2) (1) (2) DOS (1) DOS (1) DOS (1) 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 (1) DOS refers to Directly Operated Stores which include boutiques, outlets, concession shop-in-shops and pop-up
Slide 32: Reconciliation of Contribution Profit
(€ in Thousands, unless otherwise noted) 2022 2023 2024 Reconciliation of Contribution Profit 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,
Slide 33: Reconciliation of Adjusted EBIT
(€ in Thousands, unless otherwise noted) 2022 2023 2024 Reconciliation of Adjusted EBIT 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 operatio
Slide 34: Reconciliation of Adjusted EBITDA
(€ in Thousands, unless otherwise noted) 2022 2023 2024 Reconciliation of Adjusted EBITDA 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 (gain)/losses -7,950 8,486 -3,353 ES
Slide 35: Non-IFRS financial measures
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
Lanvin Group Holdings — H1 2024 Earnings Presentation on 6ix