Group 1 - The core viewpoint of the article highlights the financial performance and market position of Lanvin Group, which experienced a stock price increase of 5.58% to $2.27 per share, with a total market capitalization of $285 million [1] - As of December 31, 2024, Lanvin Group reported total revenue of €329 million, reflecting a year-on-year decrease of 22.89%, and a net profit attributable to shareholders of -€165 million, down 27.79% year-on-year [1] - Lanvin Group is identified as a leading luxury fashion group headquartered in Shanghai, China, managing iconic global brands such as Lanvin, Wolford, Sergio Rossi, St. John Knits, and Caruso [1] Group 2 - The company aims to expand its portfolio brands' global footprint and achieve sustainable growth through strategic investments and extensive operational knowledge [1] - Lanvin Group leverages unique strategic alliances with industry-leading partners in the luxury fashion sector to enhance its market presence [1] - The company possesses a deep understanding of the rapidly growing luxury fashion market and unparalleled channels for growth [1]

Financial Performance Overview - Lanvin Group's H1 2024 revenue was €170976 thousand, impacted by macroeconomic trends and wholesale challenges[100] - The group's gross profit margin remained relatively stable, decreasing by 1% from H1 23 to H1 24[48] - Adjusted EBITDA decreased by 3% from -€41 million in H1 23 to -€42 million in H1 24[48] - The group's contribution profit margin decreased from 69% in H1 23 to -42% in H1 24[44] Brand-Specific Highlights - Lanvin's revenue decreased by 154% year-over-year, but APAC excluding Greater China grew by 9%[74] - Wolford's revenue decreased by 276%, impacted by 3PL transition issues and wholesale trends[76] - Sergio Rossi's revenue declined by 38%, driven by a 60% decrease in wholesale[86] - St John's revenue decreased by 143%, but gross margin improved significantly from 62% to 69%[88, 91] - Caruso's revenue was relatively flat, declining by 1%, but the Caruso brand business grew by 21%[93, 97] Cost Efficiency and Strategic Initiatives - The group is implementing cost-efficiency initiatives to maintain margin improvement[23] - G&A expenses decreased year-over-year across brands, with Lanvin improving by 29%, Wolford by 11%, St John by 9%, and Caruso by 4%[50] - The group is working on new partnerships for Middle East expansion, product category expansion, and global logistics support[25]

Financial Performance Summary - Lanvin Group's revenue for FY 2024 was €329 million, a 23% decrease compared to FY 2023 [17] - The group's gross profit margin decreased from 59% in 2023 to 56% in 2024 [127] - Adjusted EBITDA margin decreased from -15% in 2023 to -28% in 2024 [127] - Lanvin brand revenue decreased by 26%, from €111740 thousand in 2023 to €82720 thousand in 2024 [146, 174] - Wolford's revenue declined by 30%, from €126 million in 2023 to €88 million in 2024 [151, 149] - Sergio Rossi's revenue decreased by 30% from approximately €60 million in 2023 to €42 million in 2024 [153, 152] - St John's revenue decreased by 12% from €90 million in 2023 to €79 million in 2024 [162, 159] - Caruso's revenue decreased slightly by 7% from €40 million in 2023 to €37 million in 2024 [166, 164] Strategic Initiatives and Operational Efficiency - Implemented measures to reduce G&A expenses and improve working capital management [17] - Proactively consolidated stores network to optimize the retail footprint [17] - G&A expenses reduced by 14% [146] - Streamlined the Sergio Rossi network by focusing on key locations and closure of underperforming stores [83] Regional Performance - North America outperformed other key markets [109] - International revenue for St John decreased by 46% [162]

Brand Portfolio and Revenue - Lanvin Group manages a diverse portfolio of 5 iconic luxury heritage brands[10, 21] - In 2024, Lanvin's revenue was €83 million, representing 25% of the group's revenue[16] - Wolford's 2024 revenue was €88 million, accounting for 27% of the group's revenue[17] - Sergio Rossi's 2024 revenue was €42 million, which is 13% of the group's revenue[16] - St John's 2024 revenue reached €79 million, making up 24% of the group's revenue[19] - Caruso generated €37 million in revenue in 2024, contributing 11% to the group's revenue[16] Financial Performance and Challenges - The group's global revenue for FY 2024 was €329 million, a 23% decrease compared to FY 2023[80] - The group's Adjusted EBITDA in 2024 was -€92320 thousand, representing -28% of revenue[87, 132] - The group is implementing measures to reduce G&A expenses and improve working capital management[80] Strategic Initiatives - The group is focused on streamlining expenses and enhancing operational efficiency[77] - The group is upgrading its store network with disciplined new openings and a strategic focus on key markets[97] - The group is aiming to reduce discounts and sharpen product offerings to focus on core and less seasonal categories[95]

Financial Data and Key Metrics Changes - For fiscal year 2024, global revenue was €329 million, a 23% decrease from fiscal year 2023, reflecting broader industry trends, particularly in EMEA and Greater China [4] - Gross margin remained stable at 56%, compared to 59% in the previous year, despite the revenue decline [5] - General and administrative (G&A) expenses were reduced by 15% year over year, demonstrating a streamlined cost structure [6] - Operating cash flow improved by 32% from 2020 to 2024, driven by reduced inventory days and tighter receivable management [6] Business Line Data and Key Metrics Changes - Caruso's contribution profit increased to €8.8 million in 2024, up from €3.2 million in 2022, reflecting a refined distribution strategy [8] - St. John's contribution profit grew from a loss in 2020 to €8 million in 2024, thanks to strategic investments in brand repositioning [8] - Lanvin's revenue increased to €82.7 million in 2024, more than doubling from €35 million in 2020, driven by investments in brand desirability [9] - Wolfer's revenue declined by 30% to €88 million due to macroeconomic volatilities and logistic disruptions [30] Market Data and Key Metrics Changes - EMEA and Greater China markets faced significant challenges, impacting overall performance [4][27] - St. John's North America market outperformed, contributing 94% of revenue, while international markets were streamlined [33] - Sergio Rossi's revenue declined by 30% to €42 million, with EMEA market down 35% due to wholesale conditions [31] Company Strategy and Development Direction - The company is focusing on operational efficiency and cost discipline as key pillars of its turnaround plan [10][11] - Strategic actions include consolidating the store network and concentrating on core business units [5] - The leadership changes, including the appointment of new creative directors, are expected to drive innovation and growth [13][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macroeconomic turbulence and shifting consumer behaviors impacting performance [4] - Despite challenges, the company is optimistic about its ability to deliver sustainable growth and restore profitability in 2025 and beyond [24][37] - The company views challenges as catalysts for transformation, emphasizing a commitment to craftsmanship and brand relevance [24][37] Other Important Information - The company has made significant strides in cash management, with net cash used in operating activities improving by 27% since 2022 [12] - The appointment of new creative leadership is expected to have a significant impact on brand performance [13][22] Q&A Session Summary - The Q&A session was concluded without any specific questions being recorded, indicating a wrap-up of the conference call [39]

Financial Performance - Approximately 10.3% of the company's revenues in 2024 are derived from operations in the Greater China region[42] - The company incurred significant losses of €239.8 million, €146.3 million, and €189.3 million for the years ended December 31, 2022, 2023, and 2024, respectively, and anticipates continued losses in the near future[64] - The company anticipates continuing to incur significant losses for the current year and upcoming future years[59] - The company expects to incur negative operating cash flows in the next few years and may need to raise substantial additional funding to support its operations and growth strategies[176] - The company has not made any transfers, dividends, or distributions to shareholders as of the date of the annual report, other than cash dividends of $1.0 million paid to Meritz in 2022 and 2023[55] Capital and Investments - The company made capital injections of EUR50.0 million in 2022, EUR27.0 million in 2023, and EUR40.5 million in 2024 into the Lanvin brand portfolio[54] - The company issued shareholder loans of $25.5 million, $12.5 million, and $3.5 million to St. John in 2022, 2023, and 2024, respectively[54] - The company has made shareholder loans of EUR22.5 million, EUR10.8 million, and EUR29.1 million to Wolford AG in 2022, 2023, and 2024, respectively[54] Market and Competition - The company faces intense competition in the personal luxury goods industry, which may impact customer relationships and sales if consumer preferences are not anticipated[60] - The company faces significant risks from global economic, political, and social conditions, which could adversely affect its business and operations[73] - The ongoing conflict in Ukraine and related sanctions may adversely affect the company's supply chain and customer base, impacting its overall business[170] - Competition from counterfeit products may harm brand reputation and market share, resulting in decreased operational performance[97] Regulatory and Compliance Risks - The company is subject to regulatory developments in China that could materially affect its operations and financial condition[47] - The company may face trading prohibitions under the Holding Foreign Companies Accountable Act if its auditor is unable to be inspected for two consecutive years[56] - Recent PRC regulations require domestic companies seeking to list overseas to fulfill filing procedures with the CSRC, which could impact the company's ability to maintain its listing status[161] - The company is subject to various legal and regulatory risks, including compliance with intellectual property rights and anti-corruption laws, which could affect operations and reputation[138] Operational Challenges - The company is dependent on a limited number of distribution facilities, and operational difficulties at these facilities could materially adversely affect business operations and financial condition[60] - The company operates a limited number of distribution facilities, and any operational difficulties could materially impact business and financial condition[124] - The company is actively seeking new and larger distribution facilities to enhance efficiency and flexibility, but this comes with inherent risks[125] Consumer Behavior and Market Trends - The COVID-19 pandemic has materially impacted the company's operations, including store closures and reduced consumer spending, particularly in the luxury goods sector[74][75] - Consumer behavior has shifted due to job losses and remote working, negatively affecting sales of formalwear and high-heeled shoes[75] - The apparel business is subject to seasonal fluctuations, with higher sales typically in the last quarter of the year due to holiday shopping and Chinese New Year celebrations[126] Brand and Marketing Strategy - Future growth depends on successful execution of strategic initiatives, including brand engagement and digitalization efforts[78][79] - The company aims to expand its market share through optimizing product mixes, enhancing brand identities, and reinforcing global digital strategies[82] - Marketing and advertising initiatives are essential for customer acquisition, but rising costs and competition may hinder profitability[90][93] - The company must adapt to changing consumer preferences and technological advancements to maintain brand relevance and drive sales[80][81] Data Security and Privacy - A data security or privacy breach could damage the company's reputation and relationships with customers, exposing it to litigation risk[60] - The company collects personal data for sales processing and customer registration, exposing it to risks of data loss or unauthorized access[118] - Compliance with evolving data protection laws may incur significant costs and impact the company's reputation if not adhered to[115] Strategic Growth and Acquisitions - Acquisitions are a key growth strategy, but there are risks associated with integration and achieving expected synergies[130] - The company aims to diversify its portfolio through potential future acquisitions, focusing on product offerings, demographics, and distribution channels[238] - The company is committed to developing direct-to-consumer channels, including self-operated retail boutiques and e-commerce, as part of its growth strategy[237] Shareholder and Securities Issues - The trading price of the company's securities has been volatile, which could lead to substantial losses for holders[178] - The company has 31,979,969 Warrants exercisable at an exercise price of $11.50 per share, which could lead to dilution for existing shareholders[182] - If all outstanding Warrants are exercised, the company could receive approximately $367.8 million in proceeds[183] - The company may not pay cash dividends in the foreseeable future, relying on dividends from its subsidiary FFG[212] Internal Control and Reporting - The company has identified material weaknesses in its internal control over financial reporting, which could impair the ability to produce timely and accurate financial statements[219] - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from disclosure requirements, which may affect the attractiveness of its securities to investors[223] - The company is required to file an annual report on Form 20-F within four months of the fiscal year-end and intends to publish half-year results via press releases[200]

Financial Data and Key Metrics Changes - Preliminary revenue for 2024 was €328,000,000, a decrease of 23% compared to 2023 [2] Business Line Data and Key Metrics Changes - Revenue for the flagship brand Lanvin declined by 26% from €112,000,000 in 2023 to €83,000,000 in 2024, driven by a global slowdown in luxury demand and changing consumer preferences [4] Market Data and Key Metrics Changes - Wholesale revenue fell by 32%, attributed to a weak market for retailers and specialty stores [4] Company Strategy and Development Direction - The company aims to focus on driving growth and enhancing operational efficiency across its brands as it looks ahead to 2025 [3] Management's Comments on Operating Environment and Future Outlook - The luxury fashion industry faced a challenging year in 2024 due to macroeconomic headwinds and a softer market environment, particularly impacting consumer segments in Greater China and the wholesale channel [2] Other Important Information - The conference call was recorded, and participants were in a listen-only mode during the presentation [1] Q&A Session Summary No questions were asked during the Q&A session, which concluded the conference call [5]

Core Viewpoint - Lanvin Group will release its audited results for the full-year 2024 on April 30, 2025, and will host a conference call to discuss the results and provide an outlook for 2025 [1]. Group Overview - Lanvin Group is a leading global luxury fashion group headquartered in Shanghai, managing iconic brands such as Lanvin, Wolford, Sergio Rossi, St. John Knits, and Caruso [4]. - The company aims to expand its global footprint and achieve sustainable growth through strategic investments and operational expertise, focusing on the fastest-growing luxury fashion markets [4]. Conference Call Details - A slide presentation will accompany the conference call, available on the Group's investor relations website [2]. - Participants must pre-register to join the conference call, with registration available up to and after the call starts [3]. - A replay of the conference call will be accessible approximately one hour after the live call until May 7, 2025 [3].

Financial Data and Key Metrics Changes - The company's preliminary revenue for 2024 was €328,000,000, a decrease of 23% compared to 2023, reflecting broader industry trends and macroeconomic challenges [3][4] - Wholesale revenue across the company fell significantly, with declines noted in various brands [10][12] Business Line Data and Key Metrics Changes - Lanvin, the flagship brand, experienced a revenue decline of 26%, from €112,000,000 in 2023 to €83,000,000 in 2024, driven by a global slowdown in luxury demand [10] - Warfar's revenue declined by 31%, with the EMEA region most affected, showing a 36% decline [12] - Sergio Rossi's revenue decreased by 30%, with the EMEA market experiencing a 35% decline [13] - St. John's revenue declined by 12%, with North America showing some resilience with a 3% growth in domestic wholesale [14] Market Data and Key Metrics Changes - Greater China saw a significant decline of 40% in revenue, while North America experienced a 19% decline [11] - The EMEA D2C market remained more resilient despite challenges in wholesale channels [11] Company Strategy and Development Direction - The company is focusing on consolidating its store network, optimizing retail footprint, and enhancing operational efficiency [4][19] - Establishing a second headquarters in Europe is part of the strategy to streamline operations and improve decision-making agility [7][19] - New leadership appointments are expected to drive strategic implementation and transformative initiatives across brands [4][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but remains optimistic about future prospects and growth opportunities [3][4] - The company is committed to innovation and growth in the luxury fashion industry, despite current challenges [18][21] Other Important Information - The company is investing in new product launches and creative leadership to drive future growth, with a focus on enhancing the wholesale business and exploring high-growth regions [7][14][18] - The appointment of new artistic and creative directors is expected to bring a fresh vision and energy to the brands [20][21] Q&A Session Summary - There were no questions during the Q&A session, concluding the conference call [22]

Lanvin Group Overall Performance - Lanvin Group's preliminary revenue for FY 2024 was €3282 million, a 230% decrease compared to FY 2023[14] - Total Brands revenue decreased by 232% from €427947 thousand in 2023 to €328648 thousand in 2024[64] - The group experienced a slowdown intensified throughout the year, especially in Greater China and wholesale[14] Regional Performance - North America accounted for 39% of total revenue in 2024, with a YoY decrease of 127%[13,64] - EMEA accounted for 44% of total revenue in 2024, with a YoY decrease of 28%[13,64] - Greater China accounted for 10% of total revenue in 2024, with a YoY decrease of 374%[13,64] Channel Performance - DTC (Direct-to-Consumer) channel accounted for 61% of total revenue in 2024, with a YoY decrease of 19%[13] - Wholesale channel accounted for 35% of total revenue in 2024, with a YoY decrease of 28%[13] Brand Performance - Lanvin's revenue declined by 26% from €112 million in 2023 to €83 million in 2024[23] - Wolford's revenue declined by 31%, dropping from €126 million in 2023 to €88 million in 2024[29] - Sergio Rossi's revenue declined by 30% from €60 million in 2023 to €42 million in 2024[39] - St John's revenue declined 12% from €90 million in 2023 to €79 million in 2024[48] - Caruso's revenues decreased slightly by 7% from €40 million in 2023 to €37 million in 2024[61]