Lanvin Group (LANV) Q2 2024 earnings summary

Executive summary

• Revenue declined 20% year-over-year to €171 million in H1 2024, driven by macroeconomic headwinds, luxury market softness, and wholesale channel challenges.

• Gross profit margin remained steady at 57.5%, with improvements at Lanvin, St. John, and Caruso.

• Significant cost reduction initiatives and operational efficiencies were implemented, including G&A and marketing expense cuts and retail network optimization.

• New creative and artistic directors were appointed at Lanvin and Sergio Rossi, and a new CEO at Wolford, to drive future growth.

• Integration and logistics issues at Wolford's new 3PL provider caused shipping delays and revenue impact.

Financial highlights

• H1 2024 global revenue: €171 million, down 20% year-over-year; DTC revenue -14%, wholesale -30%.

• Gross profit margin: 57.5% (down 1 percentage point year-over-year), gross profit €98 million.

• Adjusted EBITDA loss was €42 million, a 3% decrease period-over-period.

• Net loss for H1 2024: €69.4 million, compared to €72.2 million in H1 2023.

• Contribution profit margin fell to -4.2% due to continued marketing investment.

Outlook and guidance

• Focus on further cost reductions, margin improvement, and operational efficiencies in H2 2024.

• Continued investment in marketing, product development, and creative initiatives for 2025, leveraging new leadership.

• Retail network to be optimized, with closures of underperforming stores and expansion in opportunity zones.

• Management anticipates continued softness in the luxury market but is positioning for future growth.