Group's Resilient Business Model Sees Growth Across All
Channels and Geographies
- Group Revenue of €215 million for H1 2023, a 6.4% increase over
H1 2022
- Group Gross Profit Margin improved to 58.5% and Contribution
Profit Margin(1) up significantly to 6.9%; on track to
achieve Adjusted EBITDA breakeven in FY2024
- Group Revenue increased in all channels and geographies, with
Greater China growing by
13.9%
- Flagship brand Lanvin utilized the first half to transition its
creative direction and establish its future; the four brands,
excluding Lanvin continued with solid growth of 14.7%,
collectively
- Reacquisition of Lanvin's Japan trademarks successfully completed in
March
NEW
YORK, Aug. 30, 2023 /PRNewswire/ -- Lanvin Group
(NYSE: LANV, the "Group"), a global luxury fashion group with
Lanvin, Wolford, Sergio Rossi, St.
John and Caruso in its portfolio of brands, today announced
its results for the first half of 2023. The Group achieved
revenue of €215 million, a 6.4% increase period-over-period versus
2022; and gross profit of €125 million, representing a 58.5% gross
profit margin, up from €113 million, and 55.9% gross profit margin
in the first half of 2022.
Joann Cheng, Chairman and CEO
of Lanvin Group, said: "We continue our track record of global
growth while we make progress on our path to profitability. Our
improvement in gross profit and contribution profit are evidence of
our commitment to securing profitable growth. We have done the
groundwork for our brands to accelerate their growth and are
excited about our prospects for the remainder of 2023."
Ms. Cheng continued, "At the top line, we grew group revenues
across all our key markets with Sergio
Rossi growing sales by 22.4% and Wolford growing 8.4%,
especially after the hiring of Nao
Takekoshi as its Creative Director. We also made several
strategic reorganization decisions with respect to Lanvin which had
an expected short-term impact in the first half of 2023. We believe
we have now placed Lanvin in a much stronger position and look
forward to seeing the results of these decisions, such as a new
collection from our first Lanvin Lab guest designer, the
Grammy-winning artist, Future."
Review of the First Half 2023
Results
Lanvin Group Revenue
by Brand
€ in
Thousands, unless
otherwise noted
|
Revenue
|
Growth
%
|
CAGR
%
|
2021
|
2022
|
2023
|
2022H1
vs
2021H1
|
2023H1
vs
2022H1
|
'21 H1 –
'23 H1
|
H1
|
H1
|
H1
|
|
|
|
|
|
|
|
Lanvin
|
29,471
|
63,949
|
57,052
|
117.0 %
|
-10.8 %
|
39.1 %
|
Wolford
|
41,941
|
54,261
|
58,802
|
29.4 %
|
8.4 %
|
18.4 %
|
St. John
|
33,373
|
41,924
|
46,663
|
25.6 %
|
11.3 %
|
18.2 %
|
Sergio Rossi
|
0
|
26,969
|
33,019
|
N/A
|
22.4 %
|
N/A
|
Caruso
|
12,328
|
14,919
|
19,926
|
21.0 %
|
33.6 %
|
27.1 %
|
Total Brand
|
117,113
|
202,022
|
215,462
|
72.5 %
|
6.7 %
|
35.6 %
|
|
|
|
|
|
|
|
Eliminations
|
-231
|
-322
|
-925
|
39.4 %
|
187.3 %
|
100.1 %
|
Total Group
|
116,882
|
201,700
|
214,537
|
72.6 %
|
6.4 %
|
35.5 %
|
|
|
|
|
|
|
|
Lanvin Group
Consolidated P&L
€ in Thousands, unless
otherwise noted
|
2021
|
2022
|
2023
|
H1
|
%
|
H1
|
%
|
H1
|
%
|
|
|
|
|
|
|
|
Revenue
|
116,882
|
100.0 %
|
201,700
|
100.0 %
|
214,537
|
100.0 %
|
Gross profit
|
60,555
|
51.8 %
|
112,743
|
55.9 %
|
125,454
|
58.5 %
|
Contribution
profit
|
-10,128
|
-8.7 %
|
5,933
|
2.9 %
|
14,854
|
6.9 %
|
Adjusted
EBITDA
|
-35,914
|
-30.7 %
|
-35,519
|
-17.6 %
|
-40,916
|
-19.1 %
|
Selected
Highlights
Consistent growth for the Group: Revenue in all regions
and by all channels grew. Greater China grew 13.9%, EMEA grew
5.3%, and North America was up
2.6%. Outside Greater China,
Asia grew 27.1%. Lanvin started
the year slowly while executing a creative reorganization, but the
rest of the Group grew 14.7%, period-over-period.
Continued positive progress with margin profile: Gross
profit margin increased to 58.5% and contribution profit reached a
Group record of €15 million, a 6.9% margin. Operational improvement
strategies are showing results and will continue to drive margin
improvement in the second half of the year, keeping the Group on
track to reach breakeven Adjusted EBITDA in 2024.
Reacquisition of Lanvin's Japan trademarks: Lanvin reacquired
its Japan trademarks from its
strategic partner, Itochu Corporation in March, to further
integrate its global IP and management. Itochu Corporation built a
highly successful licensed business in Japan over the past 20 years, and it will
continue to support Lanvin's future development in this market as
its exclusive licensee and distributor for Japan.
New organizational and personnel announcements:
With global trends evolving, Lanvin made a strategic decision
to take a new creative direction in April. Together with the
departure of its former Creative Director Bruno Sialelli, Lanvin announced the
establishment of two new organizational structures alongside the
development of its main ready-to-wear collection: Leather Goods
& Accessories and Lanvin Lab. Lanvin Lab is an experimental
space inviting creative partnerships with proven and rising
international talents that challenge and reinforce the house's
cultural values and position. Lanvin Lab has announced Future, the
Grammy-winning artist, as its first guest creative director and
will launch its inaugural collection in the second half of
2023.
In February, Wolford announced its new Creative Director,
Nao Takekoshi, a highly successful
industry veteran who began his career at Issey Miyake and went on
to work with brands such as Cerruti, Gucci, Donna Karan,
Jil Sander and Calvin Klein. Mr. Takekoshi's arrival marks an
important step in the development of Wolford's strategy, which is
based on strengthening and modernizing the brand's iconic style
while shaping it into a global brand.
Review of First Half 2023
Financials
Revenue
For H1 2023, the Group generated revenue of €215 million, a 6.4%
increase period-over-period. DTC channel revenue increased by 5.1%
and Wholesale revenue increased by 2.2%. Other revenue growth was
driven by royalty income, from the reacquisition of the Lanvin
Japan trademarks, and clearance income. Regional revenue also
increased across the board with Greater
China growing at 13.9% (Asia excluding Greater China grew by 27.1%), EMEA growing at
5.3%, and North America increasing
by 2.6%.
Gross Profit
Gross profit increased to €125 million, representing a 58.5%
margin versus €113 million for H1 2022 at a margin of 55.9%. The
Group continues to focus on scale, and product and distribution
management to drive its gross profit margin.
Contribution Profit(1)
The Group showed significant improvement in contribution profit
at €15 million, a 6.9% margin versus €6 million for H1 2022 at a
margin of 2.9%, a period-over-period increase of 150.4%. The Group
uses this variable profitability metric as a barometer for
operating performance and key performance indicator for its
operational and cost initiatives.
Adjusted EBITDA
Adjusted EBITDA for the Group declined to -€41 million versus
-€36 million for H1 2022, mainly driven by lower revenue at Lanvin,
and the resulting reduction in cost absorption. Additionally,
investments in selling and marketing expenses increased for the
establishment of Lanvin Lab; physical fashion shows versus digital,
the previous year; and other initiatives planned for the second
half of 2023.
Results by
Segment
Lanvin: Revenue decreased from €64 million in H1 2022 to
€57 million in H1 2023, mainly due to its focus on a creative
transition as well as comparatively fewer key product and marketing
initiatives in H1 2023 versus H1 2022. As part of its creative
transition, the brand established Lanvin Lab, and a dedicated team
for leather goods and accessories, with plans for initiatives to
launch in the second half of 2023.
The brand plans to announce a new Artistic Director in the
coming months who will work alongside Lanvin Lab. The new Artistic
Director and Lanvin Lab will work in tandem to drive brand heat
more consistently going forward. With these changes, the brand has
set its foundation for the future.
Gross profit increased to €32 million from €30 million from
higher contribution of DTC revenue and accessory categories.
Contribution profit remained stable from a contribution loss of €4
million in H1 2022 to a contribution loss of €5 million in H1
2023.
The second half is poised for accelerated growth from key
product launches, collaborations, and marketing initiatives, as
well as the opening of the new New York
City flagship store on Madison Avenue and entry into the
Middle East market.
Wolford: Revenue grew at 8.4% increasing from €54 million
in H1 2022 to €59 million in H1 2023. Greater China grew 46.7%, while North America grew at 10.3% and EMEA increased
by 4.9%. Wholesale revenue, which included new franchise locations,
was up 28.2% from price increases and organic growth.
Gross profit margin increased to 71.5% from 70.7%. Contribution
profit increased, turning positive to €4 million from a loss of €2
million and margin increasing from -3.6% to 6.7%, thanks to the
increased sales, higher gross profit margin, and lower marketing
and selling expenses.
The brand growth was highlighted with the continued strong
growth of The W collections, the special capsule with N°21, as well
as a powerful campaign starring legendary singer and style icon
Grace Jones, whose bold sense of
confidence and unique performances have inspired women for
generations. We expect product innovations and new
launches to continue driving the brand forward in the second half
of 2023.
Sergio Rossi: Sergio Rossi revenue increased from €27 million
in H1 2022 to €33 million in H1 2023, a growth of 22.4%. The brand
had 29.7% growth in EMEA and 31.5% growth in North American regions
as well as 20.9% in Greater China,
a key market. New product launches including the collaboration with
AREA – the breakout apparel brand from New York, as well as the special
campaign with Japanese artist Mari
Katayama who has walked with prosthetic legs since the age
of nine has generated continuous brand heat.
Gross profit margin decreased from 54.9% to 51.9%,
period-over-period due to a 31.3% increase in Wholesale revenue for
the period, while DTC revenue grew 15.0%. Wholesale revenue
increased mainly from increased orders for production for
third-parties, which Sergio Rossi
includes in Wholesale revenue. Contribution profit margin improved
from 13.4% to 17.5% driven by operating leverage from the increase
in revenue.
St. John: Revenue grew from €42 million in H1 2022 to €47
million in H1 2023, a growth of 11.3%. Gross profit tracked with
revenue and improved from €26 million to €29 million; with gross
profit margin increasing from 61.4% to 62.2%. Contribution profit
was also higher by approximately €718,000, and contribution profit
margin increased by 50bps. The Foundation collection launched last
fall, comprised of a wardrobe's building blocks, continued to be a
key growth driver, especially with celebrity stylist Karla Welch joining as its Creative Consultant.
A #OwnYourPower campaign featuring Shonda Rhimes was also
successfully introduced to celebrate St.
John's customer community of incredible women doing
extraordinary things.
Opex rationalization is on track and will be completed in the
second half, including upgrading the supply chain. The transition
from a manufacturing business to a brand company has brought
stability to the brand, and it is positioned to accelerate growth
and further expand its margin by focusing on marketing efforts.
Caruso: Caruso grew its revenue by 33.6% from €15 million
in H1 2022 to €20 million in H1 2023, driven by both a strong
like-for-like growth of its B2B Maisons manufacturing business as
well as a strong response to its branded Caruso collection. Gross
profit increased from €4 million to €5 million, and gross profit
margin increased from 25.0% to 26.3%. Contribution profit also
increased from €3 million to €4 million, and contribution profit
margin increased from 20.5% to 22.0%. Caruso continued to leverage
higher sales from new accounts and deeper penetration with current
customers to increase its profitability through economies of
scale.
2023 Full-Year
Outlook
The Group expects to maintain momentum into the second half of
2023 and continue its margin improvement. With exciting marketing
initiatives, design collaborations, and collection launches
planned, the Group anticipates a strong second half.
The Group continues to focus on topline revenue, and with its
store network rationalized and operating expenses stabilized, the
Group expects to drive its operating leverage to achieve breakeven
Adjusted EBITDA in 2024.
---------------------------------
Note: All % changes are calculated on an actual currency
exchange rate basis.
Note: This communication includes certain non-IFRS financial
measures such as Contribution Profit, Contribution Profit Margin,
adjusted earnings before interest and taxes ("Adjusted EBIT"), and
adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA"). Please see Use of Non-IFRS
Financial Metrics and Non-IFRS Financial Measures and
Definition.
(1) Contribution Profit defined as Gross Profit less
Selling and Marketing Expenses
***
Semi-Annual Report
Our semi-annual report, including the interim condensed
consolidated financial statements as of and for the six months
ended June 30, 2023, can be
downloaded from the Company's investor relations website
(ir.lanvin-group.com) under the section Financials / SEC Filings,
or from the SEC's website (www.sec.gov).
***
Conference Call
As previously announced, today at 8:00AM
EST/8:00PM CST/2:00PM CET, Lanvin Group will host a conference
call to discuss its results for the first half of 2023 and provide
an outlook for the remainder of the year. Management will refer to
a slide presentation during the call, which will be made available
on the day of the call. To view the presentation, please visit the
"Events" tab of the Group's investor relations website at
https://ir.lanvin-group.com. To participant in the conference call,
please dial into the following numbers:
United States Toll Free: 1-888-346-8982
International: 1-412-902-4272
Mainland China Toll Free:
4001-201203
Hong Kong Toll Free: 800-905945
Hong Kong Local Toll: 852-301-84992
Singapore Toll Free: 800-120-6157
A replay of the conference call will be accessible approximately
one hour after the live call until September
6, 2023, by dialing the following numbers:
US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 855-669-9658
Replay Access Code: 5791065
A recorded webcast of the conference call and a slide
presentation will also be available on the Group's investor
relations website at https://ir.lanvin-group.com.
***
About Lanvin Group
Lanvin Group is a leading global luxury fashion group
headquartered in Shanghai, China,
managing iconic brands worldwide including Lanvin, Wolford,
Sergio Rossi, St. John Knits, and
Caruso. Harnessing the power of its unique strategic alliance of
industry-leading partners in the luxury fashion sector, Lanvin
Group strives to expand the global footprint of its portfolio
brands and achieve sustainable growth through strategic investment
and extensive operational know-how, combined with an intimate
understanding and unparalleled access to the fastest-growing luxury
fashion markets in the world. Lanvin Group is listed on the New
York Stock Exchange under the ticker symbol 'LANV'. For more
information about Lanvin Group, please visit www.lanvin-group.com,
and to view our investor presentation, please visit
https://ir.lanvin-group.com.
***
Forward-Looking Statements
This communication, including the section "2023 Full-Year
Outlook", contains "forward-looking statements" within the meaning
of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
are accompanied by words such as "believe," "may," "will,"
"estimate," "continue," "anticipate," "intend," "expect," "should,"
"would," "plan," "predict," "potential," "seem," "seek," "future,"
"outlook," "project" and similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. These forward-looking statements include, but
are not limited to, statements regarding estimates and forecasts of
other financial and performance metrics and projections of market
opportunity. These statements are based on various assumptions,
whether or not identified in this communication, and on the current
expectations of the respective management of Lanvin Group and are
not predictions of actual performance. These forward-looking
statements are provided for illustrative purposes only and must not
be relied on by an investor as, a guarantee, an assurance, a
prediction or a definitive statement of fact or probability. Actual
events and circumstances are difficult or impossible to predict and
will differ from assumptions. Many actual events and circumstances
are beyond the control of Lanvin Group. Potential risks and
uncertainties that could cause the actual results to differ
materially from those expressed or implied by forward-looking
statements include, but are not limited to, changes adversely
affecting the business in which Lanvin Group is engaged; Lanvin
Group's projected financial information, anticipated growth rate,
profitability and market opportunity may not be an indication of
its actual results or future results; management of growth; the
impact of COVID-19 or similar public health crises on Lanvin
Group's business; Lanvin Group's ability to safeguard the value,
recognition and reputation of its brands and to identify and
respond to new and changing customer preferences; the ability and
desire of consumers to shop; Lanvin Group's ability to successfully
implement its business strategies and plans; Lanvin Group's ability
to effectively manage its advertising and marketing expenses and
achieve desired impact; its ability to accurately forecast consumer
demand; high levels of competition in the personal luxury products
market; disruptions to Lanvin Group's distribution facilities or
its distribution partners; Lanvin Group's ability to negotiate,
maintain or renew its license agreements; Lanvin Group's ability to
protect its intellectual property rights; Lanvin Group's ability to
attract and retain qualified employees and preserve craftmanship
skills; Lanvin Group's ability to develop and maintain effective
internal controls; general economic conditions; the result of
future financing efforts; and those factors discussed in the
reports filed by Lanvin Group from time to time with the SEC. If
any of these risks materialize or Lanvin Group's assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that Lanvin Group presently does not know, or that
Lanvin Group currently believes are immaterial, that could also
cause actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect Lanvin Group's expectations, plans, or forecasts of future
events and views as of the date of this communication. Lanvin Group
anticipates that subsequent events and developments will cause
Lanvin Group's assessments to change. However, while Lanvin Group
may elect to update these forward-looking statements at some point
in the future, Lanvin Group specifically disclaim any obligation to
do so. These forward-looking statements should not be relied upon
as representing Lanvin Group's assessments of any date subsequent
to the date of this communication. Accordingly, reliance should not
be placed upon the forward-looking statements.
***
Use of Non-IFRS Financial Metrics
This communication includes certain non-IFRS financial measures
such as Contribution Profit, Contribution Profit Margin, adjusted
operating profit, adjusted earnings before interest and taxes
("Adjusted EBIT"), and adjusted earnings before interest, taxes,
depreciation and amortization ("Adjusted EBITDA"). These non-IFRS
measures are an addition, and not a substitute for or superior to
measures of financial performance prepared in accordance with IFRS
and should not be considered as an alternative to net income,
operating income or any other performance measures derived in
accordance with IFRS. Reconciliations of non-IFRS measures to their
most directly comparable IFRS counterparts are included in the
Appendix to this communication. Lanvin Group believes that these
non-IFRS measures of financial results provide useful supplemental
information to investors about Lanvin Group. Lanvin Group believes
that the use of these non-IFRS financial measures provides an
additional tool for investors to use in evaluating projected
operating results and trends in and in comparing Lanvin Group's
financial measures with other similar companies, many of which
present similar non-IFRS financial measures to investors. However,
there are a number of limitations related to the use of these
non-IFRS measures and their nearest IFRS equivalents. For example,
other companies may calculate non-IFRS measures differently, or may
use other measures to calculate their financial performance, and
therefore Lanvin Group's non-IFRS measures may not be directly
comparable to similarly titled measures of other companies. Lanvin
Group does not consider these non-IFRS measures in isolation or as
an alternative to financial measures determined in accordance with
IFRS. The principal limitation of these non-IFRS financial measures
is that they exclude significant expenses, income and tax
liabilities that are required by IFRS to be recorded in Lanvin
Group's financial statements. In addition, they are subject to
inherent limitations as they reflect the exercise of judgements by
Lanvin Group about which expense and income are excluded or
included in determining these non-IFRS financial measures. In order
to compensate for these limitations, Lanvin Group presents non-IFRS
financial measures in connection with IFRS results.
***
Enquiries:
Media
Lanvin Group
Miya He
miya.he@lanvin-group.com
Investors
Lanvin Group
James Kim
james.kim@lanvin-group.com
Appendix
Lanvin Group
Consolidated Income Statement
|
|
|
(€ in Thousands,
unless otherwise noted)
|
|
Lanvin Group
Consolidated P&L
|
2021
|
2022
|
2023
|
H1
|
%
|
H1
|
%
|
H1
|
%
|
|
|
|
|
|
|
|
Revenue
|
116,882
|
100.0 %
|
201,700
|
100.0 %
|
214,537
|
100.0 %
|
Cost of
sales
|
-56,327
|
-48.2 %
|
-88,957
|
-44.1 %
|
-89,083
|
-41.5 %
|
|
|
|
|
|
|
|
Gross
Profit
|
60,555
|
51.8 %
|
112,743
|
55.9 %
|
125,454
|
58.5 %
|
Marketing and selling
expenses
|
-70,683
|
-60.5 %
|
-106,810
|
-53.0 %
|
-110,600
|
-51.6 %
|
General and
administrative expenses
|
-54,807
|
-46.9 %
|
-75,771
|
-37.6 %
|
-76,544
|
-35.7 %
|
Other operating income
and expenses
|
1,420
|
1.2 %
|
8,378
|
4.2 %
|
-7,960
|
-3.7 %
|
|
|
|
|
|
|
|
Loss from operations
before non-underlying items
|
-63,515
|
-54.3 %
|
-61,460
|
-30.5 %
|
-69,650
|
-32.5 %
|
Non-underlying
items
|
467
|
0.4 %
|
570
|
0.3 %
|
9,666
|
4.5 %
|
|
|
|
|
|
|
|
Loss from
operations
|
-63,048
|
-53.9 %
|
-60,890
|
-30.2 %
|
-59,984
|
-28.0 %
|
Finance cost –
net
|
-5,119
|
-4.4 %
|
-8,080
|
-4.0 %
|
-11,970
|
-5.6 %
|
|
|
|
|
|
|
|
Loss before income
tax
|
-68,167
|
-58.3 %
|
-68,970
|
-34.2 %
|
-71,954
|
-33.5 %
|
Income tax benefits /
(expenses)
|
-461
|
-0.4 %
|
256
|
0.1 %
|
-271
|
-0.1 %
|
|
|
|
|
|
|
|
Loss for the
year
|
-68,628
|
-58.7 %
|
-68,714
|
-34.1 %
|
-72,225
|
-33.7 %
|
|
|
|
|
|
|
|
Contribution Profit
(1)
|
-10,128
|
-8.7 %
|
5,933
|
2.9 %
|
14,854
|
6.9 %
|
Adjusted Operating
Profit (1)
|
-64,935
|
-55.6 %
|
-69,838
|
-34.6 %
|
-61,690
|
-28.8 %
|
Adjusted EBIT
(1)
|
-60,142
|
-51.5 %
|
-57,163
|
-28.3 %
|
-67,679
|
-31.5 %
|
Adjusted EBITDA
(1)
|
-35,914
|
-30.7 %
|
-35,519
|
-17.6 %
|
-40,916
|
-19.1 %
|
Lanvin Group
Consolidated Balance Sheet
|
|
|
|
(€ in Thousands,
unless otherwise noted)
|
|
|
|
|
|
Lanvin Group
Consolidated Balance Sheet
|
2022
|
2023
|
FY
|
H1
|
Assets
|
|
|
Non-current
assets
|
|
|
Intangible
assets
|
181,485
|
208,263
|
Goodwill
|
69,323
|
69,323
|
Property, plant and
equipment
|
46,801
|
45,613
|
Right-of-use
assets
|
121,731
|
119,097
|
Deferred income tax
assets
|
17,297
|
16,625
|
Other non-current
assets
|
15,265
|
15,843
|
|
451,902
|
474,764
|
Current
assets
|
|
|
Inventories
|
109,094
|
114,875
|
Trade
receivables
|
48,868
|
50,767
|
Other current
assets
|
30,467
|
36,645
|
Cash and bank
balances
|
91,897
|
30,847
|
|
280,326
|
233,134
|
Total
Assets
|
732,228
|
707,898
|
Liabilities
|
|
|
Non-current
liabilities
|
|
|
Non-current
borrowings
|
18,115
|
35,298
|
Non-current lease
liabilities
|
105,986
|
103,458
|
Non-current
provisions
|
4,111
|
3,292
|
Employee
benefits
|
15,128
|
17,392
|
Deferred income tax
liabilities
|
54,660
|
53,423
|
Other non-current
liabilities
|
690
|
5,413
|
|
198,690
|
218,276
|
Current
liabilities
|
|
|
Trade
payables
|
73,114
|
75,489
|
Bank
overdrafts
|
148
|
0
|
Current
borrowings
|
15,370
|
16,724
|
Current lease
liabilities
|
34,605
|
32,455
|
Current
provisions
|
3,014
|
2,359
|
Other current
liabilities
|
106,481
|
118,858
|
|
232,732
|
245,885
|
Total
Liabilities
|
431,422
|
464,161
|
Net
assets
|
300,806
|
243,737
|
Equity
|
|
|
Equity attributable to
owners of the Company
|
|
|
Share capital
(2)
|
*
|
*
|
Treasury
shares
|
-25,023
|
-25,023
|
Other
reserves
|
762,961
|
769,898
|
Accumulated
losses
|
-442,618
|
-505,620
|
|
295,320
|
239,255
|
Non- controlling
interests
|
5,486
|
4,482
|
Total
Equity
|
300,806
|
243,737
|
Lanvin Group
Consolidated Cash Flow
|
|
|
|
|
(€ in Thousands,
unless otherwise noted)
|
|
|
|
|
|
|
|
Lanvin Group
Consolidated Cash Flow
|
2021
|
2022
|
2023
|
H1
|
H1
|
H1
|
|
|
|
|
Net cash used in
operating activities
|
-33,903
|
-51,825
|
-58,118
|
Net cash used in
investing activities
|
-3,498
|
-5,556
|
-28,531
|
Net cash generated from
financing activities
|
53,293
|
17,465
|
26,396
|
Net
increase/(decrease) in cash and cash equivalents
|
15,892
|
-39,916
|
-60,253
|
|
|
|
|
Cash and cash
equivalents less bank overdrafts at the beginning of the
year
|
44,171
|
88,658
|
91,749
|
Effect of foreign
exchange differences on cash and cash equivalents
|
708
|
2,185
|
-649
|
Cash and cash
equivalents less bank overdrafts at end of the year
|
60,771
|
50,927
|
30,847
|
Lanvin Brand
Key Financials(3)
|
|
(€ in thousands,
unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lanvin Brand
Key Financials
|
2021
|
2022
|
2023
|
|
22
H1 v
21 H1
|
23
H1 v
22 H1
|
21 H1
–
23 H1
CAGR
|
H1
|
%
|
H1
|
%
|
H1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financials
on P&L
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
29,471
|
100.0 %
|
63,949
|
100.0 %
|
57,052
|
100.0 %
|
|
117.0 %
|
-10.8 %
|
39.1 %
|
Gross Profit
|
14,502
|
49.2 %
|
30,048
|
47.0 %
|
31,959
|
56.0 %
|
|
|
|
|
Selling and
distribution
expenses
|
-24,825
|
-84.2 %
|
-34,360
|
-53.7 %
|
-36,793
|
-64.5 %
|
|
|
|
|
Contribution
Profit (1)
|
-10,323
|
-35.0 %
|
-4,312
|
-6.7 %
|
-4,834
|
-8.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geography
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
11,543
|
39.2 %
|
34,779
|
54.4 %
|
29,443
|
51.6 %
|
|
201.3 %
|
-15.3 %
|
59.7 %
|
North
America
|
4,556
|
15.5 %
|
15,255
|
23.9 %
|
13,195
|
23.1 %
|
|
234.8 %
|
-13.5 %
|
70.2 %
|
Greater
China
|
11,351
|
38.5 %
|
12,362
|
19.3 %
|
11,092
|
19.4 %
|
|
8.9 %
|
-10.3 %
|
-1.1 %
|
Other
|
2,022
|
6.9 %
|
1,553
|
2.4 %
|
3,322
|
5.8 %
|
|
-23.2 %
|
113.9 %
|
28.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Channel
|
|
|
|
|
|
|
|
|
|
|
DTC
|
17,654
|
59.9 %
|
30,879
|
48.3 %
|
26,780
|
46.9 %
|
|
74.9 %
|
-13.3 %
|
23.2 %
|
Wholesale
|
8,562
|
29.1 %
|
30,799
|
48.2 %
|
23,022
|
40.4 %
|
|
259.7 %
|
-25.2 %
|
64.0 %
|
Other
|
3,255
|
11.0 %
|
2,271
|
3.6 %
|
7,250
|
12.7 %
|
|
-30.2 %
|
219.3 %
|
49.3 %
|
Wolford Brand Key
Financials(3)
|
|
|
|
|
|
|
|
|
(€ in thousands,
unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wolford Brand
Key Financials
|
2021
|
2022
|
2023
|
|
22 H1
v
21 H1
|
23 H1
v
22 H1
|
21 H1 -
23 H1
CAGR
|
H1
|
%
|
H1
|
%
|
H1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financials
on P&L
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
41,941
|
100.0 %
|
54,261
|
100.0 %
|
58,802
|
100.0 %
|
|
29.4 %
|
8.4 %
|
18.4 %
|
Gross Profit
|
26,916
|
64.2 %
|
38,383
|
70.7 %
|
42,062
|
71.5 %
|
|
|
|
|
Selling and
distribution
expenses
|
-28,572
|
-68.1 %
|
-40,337
|
-74.3 %
|
-38,128
|
-64.8 %
|
|
|
|
|
Contribution
Profit
|
-1,656
|
-3.9 %
|
-1,954
|
-3.6 %
|
3,934
|
6.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geography
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
29,936
|
71.4 %
|
38,202
|
70.4 %
|
40,083
|
68.2 %
|
|
27.6 %
|
4.9 %
|
15.7 %
|
North
America
|
8,681
|
20.7 %
|
12,891
|
23.8 %
|
14,224
|
24.2 %
|
|
48.5 %
|
10.3 %
|
28.0 %
|
Greater
China
|
2,877
|
6.9 %
|
2,799
|
5.2 %
|
4,107
|
7.0 %
|
|
-2.7 %
|
46.7 %
|
19.5 %
|
Other
|
447
|
1.1 %
|
370
|
0.7 %
|
388
|
0.7 %
|
|
-17.2 %
|
4.9 %
|
-6.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Channel
|
|
|
|
|
|
|
|
|
|
|
DTC
|
28,517
|
68.0 %
|
39,102
|
72.1 %
|
39,453
|
67.1 %
|
|
37.1 %
|
0.9 %
|
17.6 %
|
Wholesale
|
13,424
|
32.0 %
|
14,557
|
26.8 %
|
18,665
|
31.7 %
|
|
8.4 %
|
28.2 %
|
17.9 %
|
Other
|
0
|
0.0 %
|
602
|
1.1 %
|
684
|
1.2 %
|
|
NM
|
13.6 %
|
NM
|
Sergio Rossi Brand Key
Financials(3)
|
|
|
|
|
|
|
|
|
(€ in thousands,
unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sergio Rossi Brand
Key Financials
|
2021
|
2022
|
2023
|
|
23 H1
v
22 H1
|
H1
|
%
|
H1
|
%
|
H1
|
%
|
|
|
|
|
|
|
|
|
|
|
Key Financials on
P&L
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
26,969
|
100.0 %
|
33,019
|
100.0 %
|
|
22.4 %
|
Gross Profit
|
|
|
14,798
|
54.9 %
|
17,135
|
51.9 %
|
|
|
Selling and
distribution expenses
|
|
|
-11,180
|
-41.5 %
|
-11,355
|
-34.4 %
|
|
|
Contribution
Profit
|
|
|
3,618
|
13.4 %
|
5,780
|
17.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geography
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
14,267
|
52.9 %
|
18,509
|
56.0 %
|
|
29.7 %
|
North
America
|
|
|
643
|
2.4 %
|
846
|
2.6 %
|
|
31.5 %
|
Greater
China
|
|
|
5,252
|
19.5 %
|
6,350
|
19.2 %
|
|
20.9 %
|
Other
|
|
|
6,808
|
25.2 %
|
7,315
|
22.2 %
|
|
7.5 %
|
|
|
|
|
|
|
|
|
|
Revenues by
Channel
|
|
|
|
|
|
|
|
|
DTC
|
|
|
14,650
|
54.3 %
|
16,847
|
51.0 %
|
|
15.0 %
|
Wholesale
|
|
|
12,319
|
45.7 %
|
16,172
|
49.0 %
|
|
31.3 %
|
Other
|
|
|
0
|
0.0 %
|
0
|
0.0 %
|
|
0.0 %
|
St. John Brand Key
Financials(3)
|
|
|
|
|
|
|
|
|
|
(€ in thousands,
unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
St. John Brand
Key
Financials
|
2021
|
2022
|
2023
|
|
22
H1
v
21 H1
|
23
H1
v
22 H1
|
21 H1
–
23 H1
CAGR
|
H1
|
%
|
H1
|
%
|
H1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financials
on
P&L
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
33,373
|
100.0 %
|
41,924
|
100.0 %
|
46,663
|
100.0 %
|
|
25.6 %
|
11.3 %
|
18.2 %
|
Gross Profit
|
16,406
|
49.2 %
|
25,754
|
61.4 %
|
29,024
|
62.2 %
|
|
|
|
|
Selling and
distribution
expenses
|
-17,197
|
-51.5 %
|
-21,167
|
-50.5 %
|
-23,719
|
-50.8 %
|
|
|
|
|
Contribution
Profit
|
-791
|
-2.4 %
|
4,587
|
10.9 %
|
5,305
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geography
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
453
|
1.4 %
|
343
|
0.8 %
|
731
|
1.6 %
|
|
-24.3 %
|
113.2 %
|
27.1 %
|
North
America
|
29,751
|
89.1 %
|
39,130
|
93.3 %
|
41,585
|
89.1 %
|
|
31.5 %
|
6.3 %
|
18.2 %
|
Greater
China
|
3,115
|
9.3 %
|
2,283
|
5.4 %
|
4,251
|
9.1 %
|
|
-26.7 %
|
86.2 %
|
16.8 %
|
Other
|
54
|
0.2 %
|
168
|
0.4 %
|
96
|
0.2 %
|
|
212.3 %
|
-42.8 %
|
33.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Channel
|
|
|
|
|
|
|
|
|
|
|
DTC
|
23,090
|
69.2 %
|
30,493
|
72.7 %
|
37,760
|
80.9 %
|
|
32.1 %
|
23.8 %
|
27.9 %
|
Wholesale
|
10,283
|
30.8 %
|
11,431
|
27.3 %
|
8,828
|
18.9 %
|
|
11.2 %
|
-22.8 %
|
-7.3 %
|
Other
|
0
|
0.0 %
|
0
|
0.0 %
|
75
|
0.2 %
|
|
NM
|
NM
|
NM
|
Caruso Brand
Key Financials(3)
|
|
|
|
|
|
|
|
|
|
(€ in thousands,
unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caruso Brand Key
Financials
|
2021
|
2022
|
2023
|
|
22
H1
v
21 H1
|
23
H1
v
22 H1
|
21 H1 -
23 H1
CAGR
|
H1
|
%
|
H1
|
%
|
H1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financials
on
P&L
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
12,328
|
100.0 %
|
14,919
|
100.0 %
|
19,926
|
100.0 %
|
|
21.0 %
|
33.6 %
|
27.1 %
|
Gross Profit
|
2,533
|
20.5 %
|
3,731
|
25.0 %
|
5,233
|
26.3 %
|
|
|
|
|
Selling and
distribution expenses
|
-575
|
-4.7 %
|
-668
|
-4.5 %
|
-842
|
-4.2 %
|
|
|
|
|
Contribution
Profit
|
1,958
|
15.9 %
|
3,063
|
20.5 %
|
4,391
|
22.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geography
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
9,714
|
78.8 %
|
11,380
|
76.2 %
|
16,260
|
81.6 %
|
|
17.2 %
|
42.9 %
|
29.4 %
|
North
America
|
1,628
|
13.2 %
|
2,710
|
18.2 %
|
2,674
|
13.4 %
|
|
66.5 %
|
-1.3 %
|
28.2 %
|
Greater
China
|
206
|
1.7 %
|
219
|
1.5 %
|
32
|
0.2 %
|
|
6.1 %
|
-85.5 %
|
-60.7 %
|
Other
|
780
|
6.3 %
|
610
|
4.1 %
|
960
|
4.8 %
|
|
-21.8 %
|
57.3 %
|
10.9 %
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Channel
|
|
|
|
|
|
|
|
|
|
|
DTC
|
0
|
0.0 %
|
0
|
0.0 %
|
0
|
0.0 %
|
|
|
|
|
Wholesale
|
12,328
|
100.0 %
|
14,919
|
100.0 %
|
19,926
|
100.0 %
|
|
21.0 %
|
33.6 %
|
27.1 %
|
Other
|
0
|
0.0 %
|
0
|
0.0 %
|
0
|
0.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lanvin Group
Brand Footprint
|
|
DOS by
Brand
|
Jun
2022
|
Dec
2022
|
Jun
2023
|
DOS(4)
|
DOS(4)
|
DOS(4)
|
|
|
|
|
Lanvin
|
28
|
31
|
32
|
Wolford
|
167
|
163
|
156
|
St. John
|
48
|
46
|
44
|
Sergio Rossi
|
48
|
50
|
50
|
Caruso
|
1
|
1
|
0
|
Total
|
292
|
291
|
282
|
Non-IFRS Financial Measures
Reconciliation
|
|
|
|
|
(€ in Thousands,
unless otherwise noted)
|
|
|
|
Reconciliation of
Contribution Profit
|
2021
|
2022
|
2023
|
H1
|
H1
|
H1
|
|
|
|
|
Revenue
|
116,882
|
201,700
|
214,537
|
Cost of
sales
|
-56,327
|
-88,957
|
-89,083
|
Gross
Profit
|
60,555
|
112,743
|
125,454
|
Marketing and selling
expenses
|
-70,683
|
-106,810
|
-110,600
|
Contribution Profit
(1)
|
-10,128
|
5,933
|
14,854
|
General and
administrative expenses
|
-54,807
|
-75,771
|
-76,544
|
Adjusted Operating
Profit (1)
|
-64,935
|
-69,838
|
-61,690
|
|
|
|
|
Reconciliation of
Adjusted EBIT
|
2021
|
2022
|
2023
|
H1
|
H1
|
H1
|
|
|
|
|
Loss for the
year
|
-68,628
|
-68,714
|
-72,225
|
Add / (Deduct) the
impact of:
|
|
|
|
Income tax (expenses)/
benefits
|
461
|
-256
|
271
|
Finance
cost—net
|
5,119
|
8,080
|
11,970
|
Non-underlying
items
|
-467
|
-570
|
-9,666
|
Loss from operations
before non-underlying items
|
-63,515
|
-61,460
|
-69,650
|
Add / (Deduct) the
impact of:
|
|
|
|
Share based
compensation
|
3,373
|
4,297
|
1,971
|
Adjusted EBIT
(1)
|
-60,142
|
-57,163
|
-67,679
|
|
|
|
|
Reconciliation of
Adjusted EBITDA
|
2021
|
2022
|
2023
|
H1
|
H1
|
H1
|
|
|
|
|
Loss from operations
before non-underlying items
|
-63,515
|
-61,460
|
-69,650
|
D&A post
IFRS16
|
20,554
|
23,094
|
21,518
|
Provision and
impairment losses
|
5,651
|
6,500
|
-3,241
|
FX
(gain)/losses
|
-1,977
|
-7,950
|
8,486
|
ESOP
|
3,373
|
4,297
|
1,971
|
Adjusted EBITDA
(1)
|
-35,914
|
-35,519
|
-40,916
|
Note:
|
(1) These
are Non-IFRS Financial Measures and will be mentioned throughout
this communication. Please see Non-IFRS Financial Measures and
Definition.
|
(2) The
amount less than Euro1,000 is indicated with "*".
|
(3)
Brand-level results are presented exclusive of eliminations. There
is a certain discrepancy due to rounding when the numbers are
added.
|
(4) DOS
refers to Directly Operated Stores which include boutiques,
outlets, concession shop-in-shops and pop-up stores.
|
Non-IFRS Financial Measures and Definitions
Management monitors and evaluates operating and financial
performance using several non-IFRS financial measures including:
Contribution Profit, Contribution Profit Margin, Adjusted EBIT and
Adjusted EBITDA. Management believes that these non-IFRS financial
measures provide useful and relevant information regarding our
performance and improve our ability to assess financial performance
and financial position. They also provide comparable measures that
facilitate management's ability to identify operational trends, as
well as make decisions regarding future spending, resource
allocations and other operational decisions. While similar measures
are widely used in the industry in which we operate, the financial
measures that we use may not be comparable to other similarly named
measures used by other companies nor are they intended to be
substitutes for measures of financial performance or financial
position as prepared in accordance with IFRS.
Contribution Profit is defined as revenue less the cost
of sales and selling and marketing expenses. Contribution Profit
subtracts the main variable expenses of selling and marketing
expenses from Gross Profit, and our management believes this
measure is an important indicator of profitability at the marginal
level. Below contribution profit, the main expenses are general
administrative expenses and other operating expenses (which include
foreign exchange gains or losses and impairment losses). As we
continue to improve the management of our portfolio brands, we
believe we can achieve greater economy of scale across the
different brands by maintaining the fixed expenses at a lower level
as a proportion of revenue. We therefore use Contribution Profit
Margin as a key indicator of profitability at the group level as
well as the portfolio brand level.
Contribution Profit Margin is defined as Contribution
Profit divided by revenue.
Adjusted Operating Profit is defined as Contribution
Profit margin less General and administrative expenses.
Adjusted EBIT is defined as profit or loss before income
taxes, net finance cost, share based compensation, adjusted for
income and costs which are significant in nature and that
management considers not reflective of underlying operational
activities, mainly including net gains on disposal of long-term
assets, negative goodwill from acquisition of Sergio Rossi, gain on debt restructuring and
government grants.
Adjusted EBITDA is defined as profit or loss before
income taxes, net finance cost, exchange gains/(losses),
depreciation, amortization, share based compensation and provisions
and impairment losses adjusted for income and costs which are
significant in nature and that management considers not reflective
of underlying operational activities, mainly including net gains on
disposal of long-term assets, negative goodwill from acquisition of
Sergio Rossi, gain on debt
restructuring and government grants.
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SOURCE Lanvin Group