Lanvin Group(LANV)2024-04-30 15:56Financial 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]