Group 1 - Lanvin Group Holdings Limited will hold its annual general meeting (AGM) virtually on December 11, 2024, at 9:00 AM EST, serving as an open forum for shareholders to discuss company affairs with the board and executive management [1] - No proposals will be submitted for shareholder approval at the AGM [1] - Only holders of record of the Company's ordinary shares as of November 22, 2024, are entitled to attend and vote at the AGM [2] Group 2 - The Company has filed its annual report on Form 20-F for the fiscal year ended December 31, 2023, with the SEC, which includes audited financial statements [3] - The Form 20-F is accessible on both the Company's website and the SEC's website [3] Group 3 - 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 the global footprint of its portfolio brands and achieve sustainable growth through strategic investment and operational expertise [4] - Lanvin Group is listed on the New York Stock Exchange under the ticker symbol "LANV" [4]

Financial Performance - For the six months ended June 30, 2024, revenues were €171.0 million, a decrease of 20.2% from €214.5 million in the same period of 2023[21]. - The net loss for the same period was €69.4 million, compared to a net loss of €72.2 million in 2023, reflecting a 3.9% improvement[21]. - Adjusted EBITDA for the six months ended June 30, 2024, was €(42.1) million, slightly worse than €(40.9) million in 2023[21]. - Loss before taxes for the six months ended June 30, 2024, was €69.9 million, compared to €71.9 million in 2023, showing a reduction of 2.9%[29]. - The contribution profit for the six months ended June 30, 2024, was a loss of €7.213 million, compared to a profit of €14.854 million in 2023[142]. - The loss for the period was €69.376 million, slightly improved from €72.225 million in the same period of 2023[159]. - Total comprehensive loss for the period was €72,129 thousand, compared to €64,685 thousand in 2023, indicating an increase of about 11.5%[162]. Revenue Breakdown - Revenues for the six months ended June 30, 2024 amounted to €171.0 million, a decrease of €43.6 million or (20.3)% compared to €214.5 million in the same period in 2023[32]. - The largest revenue decline was from the Wolford segment, which decreased by €16.2 million (or (27.6)%) due to market headwinds and shipping disruptions[38]. - Direct-to-Consumer (DTC) revenues decreased by €16.5 million (or (13.6)%) to €104.6 million, while wholesale revenues decreased by €25.9 million (or (30.3)%) to €59.6 million[34][39]. - EMEA revenues decreased by €28.2 million (or (27.1)%) to €75.7 million, primarily due to declines in Wolford and Sergio Rossi[42]. - Revenues for the Lanvin segment decreased to €48.3 million, a decrease of €8.8 million (or 15.4%) compared to €57.1 million in the same period in 2023[82]. - Revenues for the Wolford segment decreased to €42.6 million, a decrease of €16.2 million (or 27.6%) compared to €58.8 million for the six months ended June 30, 2023[90]. - Revenues for the St. John segment decreased by €6.7 million (14.3%) to €39.98 million for the six months ended June 30, 2024, driven by sales weakness in both DTC and wholesale channels[96]. - Sergio Rossi segment revenues decreased by €12.6 million (38.2%) to €20.4 million for the six months ended June 30, 2024, primarily due to a decline in wholesale channel sales[103]. Cost and Expenses - Marketing and selling expenses were €105.6 million, representing 61.8% of revenues, compared to 51.6% in 2023[29]. - Total cost of sales for the six months ended June 30, 2024 was €72.6 million, a decrease of €16.5 million or (18.5)% compared to €89.1 million in the same period in 2023[50]. - General and administrative expenses decreased to €58.1 million, a decline of 24.1% for the six months ended June 30, 2024, from €76.5 million in the same period in 2023[64]. - Marketing and selling expenses for the six months ended June 30, 2024 amounted to €105.6 million, a decrease of €5.0 million (or 4.5%) compared to €110.6 million in the same period in 2023[59]. Profitability Metrics - Gross profit margin decreased to 57.5% in 2024 from 58.5% in 2023, indicating a decline in profitability[29]. - Gross profit for the six months ended June 30, 2024 amounted to €98.4 million, a decrease of €27.1 million or (21.6)% compared to €125.5 million in the same period in 2023[54]. - The gross profit margin declined to 57.5% for the six months ended June 30, 2024 from 58.5% in the same period in 2023, mainly due to a decrease in Wolford's gross profit margin[55]. - Contribution loss for the six months ended June 30, 2024 was €8.1 million, representing (19.1)% of revenue, compared to a profit of €3.9 million (6.7% of revenue) in the same period in 2023[94]. Cash Flow and Liquidity - As of June 30, 2024, cash and cash equivalents amounted to €17.9 million, down from €30.8 million at the end of the previous period[116]. - Net cash used in operating activities decreased by €24.6 million (42.4%) to €(33.5) million for the six months ended June 30, 2024[120]. - Net cash used in investing activities significantly decreased by €24.8 million (86.8%) to €(3.8) million for the six months ended June 30, 2024[121]. - Cash and cash equivalents decreased by 34.9% to €18.308 million as of June 30, 2024, compared to €28.130 million as of December 31, 2023[129]. - As of June 30, 2024, the company had undrawn cash credit lines of up to $15.11 million available at banks[156]. - As of June 30, 2024, cash net of debt is €(108,410) thousand, a significant decrease from €(40,251) thousand at December 31, 2023, indicating a worsening liquidity position[187]. Debt and Obligations - Total borrowings as of June 30, 2024 amounted to €37.2 million, with €8.3 million guaranteed by a third party and €28.9 million secured by pledges of assets[124]. - As of June 30, 2024, total contractual obligations amounted to €470.763 million, with €279.14 million due within one year[127]. - Current liabilities increased to €348,627 thousand from €288,344 thousand, marking a rise of about 20.9%[165]. - The gearing ratio increased to 53.9% at June 30, 2024, compared to 20% at December 31, 2023, reflecting higher leverage[187]. - The total financial liabilities as of June 30, 2024, amount to €470,763 thousand, an increase from €411,618 thousand at December 31, 2023, indicating rising obligations[200]. Shareholder and Capital Structure - The company repurchased 5,245,648 Ordinary Shares for a total of US$20.0 million as part of a share repurchase agreement[134]. - Shareholder loans received for working capital purposes amounted to €61.5 million, with €87.6 million due to shareholders as of June 30, 2024[135]. - The Group's management continues to optimize its capital structure to maximize shareholder value while maintaining an investment-grade rating[184].

Financial Data and Key Metrics Changes - The Group's revenue for the first half of 2024 was €171 million, representing a decrease of 20% compared to the previous period [5][13] - Gross profit margin remained steady, down just 1% to €38 million [5][14] - Adjusted EBITDA decreased by €1 million to a loss of €42 million, a 3% decrease period-over-period [15] Business Line Data and Key Metrics Changes - Lanvin's revenue decreased by 15% to €48 million, with a gross profit margin increase from 56% to 58% [17][18] - Wolford experienced significant revenue impact due to integration issues, leading to a contribution profit loss of €8 million [20][21] - Sergio Rossi's revenue declined by 38%, primarily due to a 60% drop in wholesale revenue, but gross profit margin only saw a modest decline of 2% [22][23] - St. John saw a revenue decrease of 14%, but gross margin improved from 62% to 69% [25][26] - Caruso had a slight revenue decline of 1%, with gross profit margin increasing from 26% to 29% [27] Market Data and Key Metrics Changes - EMEA and Greater China saw the largest revenue decreases at 27% and 24% respectively, while North America experienced a more modest decline of 11% [14] - Direct-to-Consumer (D2C) revenue decreased by 14%, and wholesale revenue was down 30% [14] Company Strategy and Development Direction - The company plans to focus on cost efficiency initiatives and tactical expansion in new markets while trimming underperforming locations [4][10] - Investment in marketing and product development is prioritized to set a path for future growth [6][10] - The addition of new creative leaders is expected to drive brand revitalization and improve wholesale performance [3][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds and ongoing political instability impacting the luxury market [4] - Despite anticipated continued softness in the luxury market, the company aims to position its brands to capitalize on improving market conditions [28][29] Other Important Information - The company welcomed new creative leaders, including Peter Copping for Lanvin and Paul Andrew for Sergio Rossi, to enhance brand direction [3][21] - The Group is working on strategic partnerships to support brand expansion and improve logistics [12] Q&A Session Summary Question: How did business trend through the quarter? - Management noted a slight uptake in the first quarter, but pressure began in the second quarter around late April to early May [31] Question: Was there a difference in performance by region? - Management indicated that macroeconomic headwinds affected all regions consistently, with some exceptions like Japan and the Middle East showing resilience [33]

Core Insights - Lanvin Group reported a revenue of €171 million for H1 2024, reflecting a 20% decrease compared to H1 2023, primarily due to global luxury market softness and challenges in the wholesale channel [1][2][9] - Despite the revenue decline, the Group maintained a gross profit margin of 57.5%, only down 1% from the previous year, indicating resilience through effective cost management and strategic inventory practices [1][6][10] - Adjusted EBITDA showed a slight decline, decreasing to a loss of €42 million from a loss of €41 million in H1 2023, attributed to proactive cost management initiatives [2][12][20] Financial Performance - Group revenue decreased by 20% from €214 million in H1 2023 to €171 million in H1 2024, with direct-to-consumer (DTC) revenue down 14% and wholesale revenue down 30% [2][9] - Gross profit was €98 million, representing a gross profit margin of 57.5%, compared to €125 million and 58.5% in H1 2023 [5][10] - Contribution profit was reported at -€7 million, reflecting the impact of ongoing marketing investments despite cost reduction efforts [11][12] Brand Performance - Lanvin's revenue decreased by 10.8% to €48 million, with a gross profit margin increase from 56% to 58% due to improved full-price sell-through [3][13] - Wolford experienced a 28% revenue decline to €43 million, primarily due to logistics integration issues, resulting in a gross profit margin drop from 72% to 63% [15][18] - Sergio Rossi's revenue fell by 38% to €20 million, with a gross profit margin remaining stable at 50% despite a significant decline in wholesale revenue [16][17] Strategic Initiatives - The Group appointed Peter Copping as the new Artistic Director for Lanvin and Regis Rimbert as CEO for Wolford, aiming to enhance brand positioning and operational efficiency [7][8][14] - Lanvin Lab 2.0 was launched, featuring a collaboration with artist Erwin Wurm, showcasing the brand's commitment to innovation and creative marketing [8] - The Group plans to focus on cost efficiencies and marketing initiatives to drive brand momentum and profitability in the second half of 2024 [20][21]

Group 1 - Lanvin Group announced the appointment of Paul Andrew as Creative Director for Sergio Rossi, a luxury footwear brand [1][2] - Paul Andrew has a notable background, having worked with prestigious brands and won the CFDA/Vogue Fashion Fund, showcasing his expertise in design and brand building [1][2] - The appointment is seen as a strategic move to merge tradition with innovation, aiming to enhance Sergio Rossi's brand evolution and align with the changing tastes of luxury clientele [2] Group 2 - Lanvin Group is a global luxury fashion group headquartered in Shanghai, managing several iconic brands including Lanvin, Wolford, and Sergio Rossi [3] - The company focuses on expanding its global presence and achieving sustainable growth through strategic investments and operational expertise in the luxury fashion sector [3]

Group 1 - Lanvin Group has appointed Peter Copping as Artistic Director, effective September 2024, to lead the creative direction for both womenswear and menswear collections [1][2] - Copping has extensive experience in the fashion industry, having worked with notable brands such as Sonia Rykiel, Louis Vuitton, Nina Ricci, Oscar de la Renta, and Balenciaga [1][2] - The appointment aligns with Lanvin's ongoing brand transformation, emphasizing a blend of radical chic and French sophistication [2] Group 2 - Lanvin Group is a leading global luxury fashion group headquartered in Shanghai, managing several iconic brands including Lanvin, Wolford, Sergio Rossi, St. John Knits, and Caruso [3] - The company aims to expand its global presence and achieve sustainable growth through strategic investments and operational expertise in the luxury fashion sector [3]

Core Insights - Lanvin Group has appointed Regis Rimbert as the new CEO of Wolford AG, effective June 14, 2024, succeeding Silvia Azzali who left for personal reasons [1] - Rimbert brings over 20 years of leadership experience in the fashion and luxury sectors, with a focus on transformative initiatives in retail and international operations [2] - The strategic mission for Rimbert includes international development, product line enrichment, and technological innovation to enhance accessibility of Wolford's high-quality products [2] Company Overview - Wolford is recognized as an iconic skinwear brand with a 70-year heritage, known for its exquisite fabrics and innovations, and is a key part of the Lanvin Group [3] - Lanvin Group is a leading global luxury fashion group based in Shanghai, managing several iconic brands and aiming for sustainable growth through strategic investments and operational expertise [4]

Financial Performance - The company incurred significant losses of €76.5 million, €239.8 million, and €146.3 million for the years ended December 31, 2021, 2022, and 2023, respectively, and anticipates continued losses in the upcoming years[49]. - The company anticipates continuing to incur losses for the current year and upcoming future years[41]. - The company expects to incur negative operating cash flows in the next few years and may need to raise substantial additional funding[45]. - The company may need to curtail or discontinue growth initiatives if unable to secure sufficient funding on acceptable terms[167]. - The company is subject to various legal and regulatory risks, including compliance with intellectual property laws and potential sanctions, which could adversely affect its operations and financial condition[121]. Revenue Sources and Shareholder Relations - Approximately 12.5% of the company's revenues in 2023 are derived from operations in the Greater China region[25]. - The company has not made any transfers, dividends, or distributions to shareholders as of the date of the annual report, except for a cash dividend of $1.0 million paid to Meritz in 2022 and 2023[36]. - The company relies on dividends from its operating subsidiaries to fund operations, and any limitations on these payments could adversely affect business conduct[164]. - The company’s ability to pay dividends significantly depends on the dividends received from its subsidiary, FFG[205]. Operational Risks - The company faces risks related to health epidemics, which may continue to adversely impact its business and financial condition[42]. - The company is dependent on a limited number of distribution facilities, and operational difficulties at these facilities could materially adversely affect its business[49]. - The company is exposed to risks related to currency exchange rate fluctuations, which could affect its financial performance[44]. - The company is subject to the risk of trading prohibitions under the Holding Foreign Companies Accountable Act if its auditor cannot be inspected for two consecutive years[37]. - The company is subject to strict data protection laws globally, and non-compliance could lead to reputational damage and legal consequences[100]. Market and Competitive Environment - The company faces intense competition in the personal luxury goods industry, which may impact its market share and results of operations[43]. - The company competes intensely in the luxury goods industry, focusing on brand recognition, product quality, and effective marketing strategies[85]. - The company faces challenges in accurately forecasting consumer demand, which could lead to excess inventory or shortages, adversely affecting profitability[76]. - Consumer spending behavior has been negatively influenced by job losses and reduced incomes, particularly affecting formalwear and high-heeled shoe sales[59]. Strategic Initiatives and Growth - Strategic initiatives include optimizing product category mixes, expanding global channels, and enhancing digital strategies to drive growth[61]. - The company is focused on retail expansion and acquiring new customers, but faces challenges in new markets, including competition and regulatory issues[66]. - E-commerce is a rapidly growing segment, but the company must address risks related to technology, fulfillment, and consumer satisfaction to succeed[71]. - Acquisitions are a key growth strategy, but the company acknowledges risks related to identifying suitable targets and the complexities of integration, which may not yield expected benefits[112]. Legal and Regulatory Compliance - The company is subject to legal and regulatory risks, including potential litigation and compliance issues, which could impact its reputation and operations[43]. - The company may face increased legal and financial compliance costs due to changing laws and regulations, which could adversely affect its business operations[185]. - The company is obligated to maintain a coverage ratio of at least 150%, and if it falls below this threshold, it may need to provide additional security or cash to Meritz[210]. - The company has identified material weaknesses in its internal control over financial reporting as of December 31, 2023, which could impair the accuracy of financial statements[212]. Brand and Market Position - The company’s brand value is critical to its success, and any diminishment in brand perception could adversely affect sales and pricing[54]. - The company is currently facing challenges regarding the re-branding to Lanvin Group, with minority shareholders contesting the use of the "Lanvin" name[50]. - The company must navigate risks from counterfeit products that could harm brand reputation and market share[80]. - The company may need to increase marketing and advertising spend to combat the effects of counterfeit goods on brand reputation[82]. Economic and Geopolitical Factors - Global economic, political, and social conditions significantly influence the company's business, with recent geopolitical tensions potentially affecting demand and competitive position[137]. - The ongoing conflict in Ukraine and related sanctions may adversely affect the company's supply chain and customer base, impacting financial performance[159]. - Future economic conditions, including volatility in financial markets, may adversely affect customer orders and payment capabilities[102]. Environmental and Social Governance (ESG) - The company is developing a sustainability strategy and ESG goals, with the potential for increased costs and investments that could adversely affect results if stakeholder expectations are not met[127]. - The company is subject to risks associated with climate change and increased focus on environmental, social, and governance (ESG) matters, which could impact its operations[43].

Revenue Performance - Revenue for FY2023 reached €426 million, a 1% increase year-over-year despite macroeconomic challenges[1] - Revenue for FY 2023 was €426,178 thousand, a slight increase from €422,312 thousand in FY 2022, representing a growth of 0.2%[30] - Lanvin's revenues for 2022 reached €119,847 thousand, a 64% increase from 2021, but decreased by 7% to €111,740 thousand in 2023[33] - Wolford's revenues for 2023 were €126,280 thousand, a 1% increase from 2022, with a CAGR of 10% from 2020 to 2023[34] - Sergio Rossi's revenues in 2023 were €59,518 thousand, reflecting a 4% decrease from 2022, despite a significant growth of 116% from 2020 to 2021[35] - Direct-to-Consumer (DTC) sales for Wolford accounted for 69% of total revenues in 2023, totaling €87,352 thousand[34] - Caruso Brand's revenues grew significantly by 30% from €30,819K in 2022 to €40,011K in 2023[37] - The overall revenue for the Lanvin Group increased from €308,822K in 2021 to €422,312K in 2022, showing a compound annual growth rate (CAGR) of 15%[41] Profitability Metrics - Gross profit increased to €251 million, representing a gross margin of 59%, up from 56% in 2022[11] - Contribution profit improved to €24 million, with a margin of 6%, an increase of €11 million from 2022[12] - Contribution profit for FY 2023 was €24,192 thousand, a significant increase from €13,211 thousand in FY 2022, marking a growth of 83.5%[30] - Lanvin's contribution profit improved from -24,096 thousand in 2021 to -11,986 thousand in 2023, indicating a positive trend[33] - Sergio Rossi's gross profit margin increased to 51% in 2023, with gross profit of €30,435 thousand[35] - Caruso Brand's gross profit margin increased from 18% in 2021 to 28% in 2023, reflecting better cost management[37] - St. John Brand's contribution profit rose to €10,679K in 2023, maintaining a contribution margin of 12%[36] Cost Management and Expenses - Adjusted EBITDA loss improved to (15%) of sales, compared to (17%) in 2022[13] - Adjusted EBITDA for FY 2023 was reported at €-64,173 thousand, an improvement from €-71,958 thousand in FY 2022, reflecting a 10.5% reduction in losses[30] - Marketing and selling expenses remained stable at 53% of revenue in FY 2023, consistent with FY 2022[30] - Non-underlying items for FY 2023 resulted in a loss of €3,858 thousand, a significant improvement from a loss of €83,057 thousand in FY 2022[30] - Finance costs increased to €20,431 thousand in FY 2023, up from €14,556 thousand in FY 2022, representing a rise of 40.5%[30] Asset and Liability Management - Non-current assets increased from €451,902 thousand in FY 2022 to €481,313 thousand in FY 2023, reflecting a growth of 6.5%[31] - Current assets decreased from €280,326 thousand in FY 2022 to €206,621 thousand in FY 2023, a decline of 26.3%[31] - Total assets decreased from €732,228 thousand in FY 2022 to €687,934 thousand in FY 2023, a reduction of 6.0%[31] - Net cash used in operating activities improved from -€80,851 thousand in FY 2022 to -€57,891 thousand in FY 2023, a decrease in cash outflow of 28.4%[32] - Cash and cash equivalents at the end of FY 2023 were €27,850 thousand, down from €91,749 thousand in FY 2022, a decrease of 69.7%[32] - Net cash flows generated from financing activities decreased from €104,937 thousand in FY 2022 to €34,131 thousand in FY 2023, a decline of 67.5%[32] - Non-current borrowings increased significantly from €181,115 thousand in FY 2022 to €323,381 thousand in FY 2023, an increase of 78.5%[31] - Total liabilities increased from €431,422 thousand in FY 2022 to €522,306 thousand in FY 2023, an increase of 21.1%[31] Regional Performance - E-Commerce sales grew by 3%, while overall DTC and Wholesale channels remained flat[7] - APAC region showed nearly 8% growth, highlighting steady regional performance[1] - North America revenues grew by 79% from 2021 to 2022, but saw a slight decline of 1% in 2023, totaling €28,210 thousand[33] - EMEA region contributed 46% to Lanvin's total revenues in 2023, amounting to €51,585 thousand[33] - The EMEA region saw a revenue increase of 26% for St. John Brand from €1,224K in 2022 to €1,541K in 2023[36] Strategic Initiatives - The Group plans to achieve cash flow breakeven by 2025, with Caruso reaching breakeven Adjusted EBITDA in 2023[1] - The Group aims to expand its strategic partnerships to facilitate regional growth and improve logistics in 2024[18] - The company anticipates continued growth opportunities despite potential risks, including market competition and economic conditions[25] - Lanvin Group emphasizes the importance of non-IFRS financial measures to provide supplemental information for evaluating projected operating results[26] Store Operations - The Group closed 36 stores but opened 24 new retail locations, including its first in the Middle East[9] - The total number of Directly Operated Stores (DOS) for St. John decreased from 48 in 2022 to 45 in 2023, while the Point of Sales (POS) remained stable[38]

Financial Data and Key Metrics Changes - The company achieved revenue of €426 million in 2023, a 1% increase from €422 million in 2022, with a three-year compound annual growth rate of 24% since 2020 [5][11] - Gross profit increased to €251 million, with a gross margin improvement to 59% from 56% in 2022 [5][42] - Adjusted EBITDA margin improved by nearly 200 basis points, with contribution profit margin increasing by 255 basis points [13][43] Business Line Data and Key Metrics Changes - The Lanvin brand experienced a revenue decrease of 7% for the year, an improvement from an 11% decrease in the first half of 2022 [44] - Wolford achieved a modest 1% same-store sales growth in 2023, with a notable 11% increase in wholesale revenue [21][22] - St. John reported a 5% growth in revenue, with DTC revenue growing by 7% and e-commerce growth of 14% [47] Market Data and Key Metrics Changes - The APAC region reported nearly 8% growth, with Greater China growing by 9% [11] - The Asia Pacific region for Wolford saw an impressive 32% growth, while retail faced a decline of 3% [22] - Sergio Rossi experienced a 70% revenue growth in North America, with e-commerce growing over 5% [34] Company Strategy and Development Direction - The company is focusing on expanding its retail footprint, with plans for new openings in the Middle East and other key regions [7][12] - A strategic partnership ecosystem is being leveraged to enhance product offerings and service [8] - The company aims to balance regional growth and capitalize on opportunities in both retail and online channels [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic headwinds and achieving profitability goals despite challenges [5][10] - The company anticipates continued growth and profitability in 2024, with a focus on improving cash flow efficiency [43][50] - Management highlighted the importance of adapting strategies to changing market conditions and consumer preferences [54][66] Other Important Information - The reacquisition of Lanvin's Japan license is expected to drive further development in that market [12][40] - The introduction of new product lines and marketing strategies is aimed at enhancing brand equity and customer engagement [16][28] Q&A Session Summary Question: Performance year-to-date in 2024 by region - Management noted a general softness in the market in Q1 2024, prompting a shift in strategy to better align with current economic conditions [54][55] Question: Insights on Lanvin Lab and its margin impact - Lanvin Lab is positioned as a cultural brand initiative, providing additional revenue while enhancing brand visibility and engagement [58][60] Question: Drivers behind increased CapEx - CapEx was driven by new store openings and ongoing rationalization efforts, with a target to maintain it at a single-digit percentage of sales for 2024 [61][62] Question: Target for group-wide breakeven on EBITDA margin - The company is now aiming for cash breakeven at a group level by 2025, adjusting for unforeseen macroeconomic challenges [66] Question: Trends in marketing and selling expenses - The company plans to continue investing in brand marketing while rationalizing costs to improve overall profitability [70]