Lanvin Group(LANV)2024-08-26 14:22Financial 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]