Lanvin Group Posts Revenue of €171 million in H1 2024

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]