Lanvin Group(LANV)2024-09-16 10:13Financial 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 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].