FY 2024
Financial Results
March 5th, 2025
1
Speakers
Enrico Mistron | Andrea Maldi | Luca Amadini |
CEO | CFO | IR Manager |
3
Agenda
2.Business Review
3.Financial review
4.Outlook
5.Q&A
4
Executive Summary
Business Overview
Financial Results
FY 2024
Current Trading
Investor Day
AGM
FY 2024 sales results reflect the full-year trend, with challenges in the WHS channel, slightly positive retail performance (in terms of LFL), and exceptional sales volume growth in online channels, including both direct e-commerce and marketplaces.
The strong actions implemented by management to reduce and optimize the cost base (approx. €20 million saving) have partially offset the challenges affecting sales performance, resulting in a positive adjusted EBIT (net of non-recurring items).
NET SALES amount to €663.8m (-7.8% vs LY or -7.1% c.Fx); GROSS MARGIN Adj at 50.9% increasing by 20 bps vs FY 2023; EBITDA Ante IFRS16 Adj at €26.2m (€37.0 m in FY 2023); EBIT Adj at €8.8m (€15.6m in FY2023);
EBIT Reported negative at -€4.2m (€15.6m in FY 2023); Net result at -€30.3m (-€6.5m in FY 2023);
NFP (ante IFRS16) at Dec '24 amounts to -€90.9m vs -€93.1m at Dec'23 (Bank debt -€103.2m vs -€90.1m at Dec'23 - Fair Value of Hedging instruments €12.3m vs -€3m at Dec'23);
NET WORKING CAPITAL amounts to €104.4m or 15.7% as % of Net Sales (€116.7m or 16.2% at Dec'23).
DOS B&M (W09) LFL YTD: -0.9% vs FY 2024 / DOS Digital (W09) LFL YTD: +4.6% vs FY 2024
Scheduled on March 13th, 2025.
Shareholders' Meeting called for April 17th, 2025.
5
Agenda
1.Executive summary
3.Financial review
4.Outlook
5.Q&A
6
Business Review- Sales and Margins
Cost efficiencies mitigate Topline decline, supporting EBIT adjusted.
The sales decline was primarily driven by challenges in the WHS channel and further impacted by a negative currency effect of -€5.3m and a perimeter reduction of -€19.6m (DOS B&M + Franchising). These effects were only partially offset by LFL performance improvements in DOS and an increase in WEB sales volume.
Significant cost reductions and targeted efficiencies in the cost structure by approx. €20.2 million mitigate the impact of topline decline and the corresponding gross profit reduction.
Cost base reduction -€20.2m
* Numbers Adjusted by non-recurring items | * Numbers Adjusted by non-recurring items |
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Business Review - Net result
Net result declined by €23.8 million, primarily due to lower business volumes and the impact of several extraordinary items
- FY 2024 results were impacted by a significant sales decline of approx. €56 million (-7.8%) compared to the previous year, leading to a gross margin reduction of around €27 million. In response, the management implemented aggressive cost containment measures, achieving an over €20 million reduction in operating expenses year-over-year. Taxes increased by approximately €3.8 million. This non-cash expense is primarily attributable to the reversal of deferred tax assets related to balance sheet provisions.
- Additionally, FY 2024 was impacted by extraordinary and Non-recurringitems(costs) totaling €13 m. These costs mainly refer to::
- Business model transformation cost for €4m;
- USA and China subsidiaries closing for approximately €4.4m;
- Restructuring costs related to workforce for a total of €1.3m;
- Fees paid to SACE and bank fees following the financial indebtedness rescheduling of approx. €1.7m;
- Other costs related to perimeter changes, totaling €1.6m.
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Business Review- Net sales
By channel | By region | By product |
€m
(12.5%) | (17.3%) | (3.9%) | 20.1% | (7.8%) | (6.6%) | (1.4%) | (11.9%) | (18.7%) | (7.8%) | (7.6%) | (9.4%) | (7.8%) |
(7.1%)c.Fx | ||||||||||||
(11.7%) c.Fx | (16.5%) c.Fx | (3.3%) c.Fx | 20.0% c.Fx | (7.1%)c.Fx | (6.6%)c.Fx | (1.7%)c.Fx | (11.0%)c.Fx | (16.1%)c.Fx | (7.1%)c.Fx | (7.0%)c.Fx | (7.8%)c.Fx | |
WHOLESALE 49% | FRANCHISING 8% | DOS B&M 34 % |
DOS Digital 9%
ITALY 28% | EUROPE 45% | NORAM 4% | ROW
23%
FOOTWEAR 90% | APPAREL 10%
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The sharp decline in the WHS channel is directly linked to the weak sales performance of both the SS24 and FW24 collections, with the impact particularly evident in key markets such as Italy, Germany, and Russia.
The DOS Digital channel recorded strong growth, reaching 20.1% vs. last year, driven by solid LFL performance (+8.3%) and an expanded perimeter through new marketplace openings in key markets.
DOS B&M achieved an overall positive LFL performance of +1.9% vs. last year, though it was not sufficient to offset the negative perimeter effect. Similar to the WHS channel, it faced greater challenges, particularly in the DACH region, APAC, and Russia.
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Business Review - Distribution network
Sales were affected by €19.6 million perimeter effect largely attributable to FY 2023 closures
- 39 Net Closures
Footprint at 31 December'24 results smaller by 39 doors in respect to 31 December '23 due to:
- #15 DOS net closures partially contributed to the perimeter effect, which amounts to a total of -
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€14.3 million, with the majority of this (€8.7 million) is due to closures in FY 2023 (60). This loss is only partially mitigated by a +1.9% increase in B&M LFL (€6.4 million).
#7 doors opened under Distribution agreements signed mainly in new strategic regions. #31 Franchisee net closures mainly in European countries result in negative -€5.3 million perimeter effect.
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