Wolford (WOL) H1 2024 earnings summary

Executive summary

• Revenue declined 27% year-over-year to €43.08 million in H1 2024, driven by weak demand and significant logistics disruptions, especially in Q2 due to a transition to a new logistics provider.

• EBIT loss deepened by 81% to €-21.78 million, and net loss after tax increased 55% to €-24.98 million compared to H1 2023.

• A comprehensive restructuring plan is underway, focusing on supply chain overhaul, inventory optimization, and cost reduction.

• Leadership changes include the appointment of a new CEO and a new Group Director HR to drive transformation.

Financial highlights

• Revenue: €43.08 million (down 27% year-over-year).

• EBIT: €-21.78 million (down 81% year-over-year).

• Net loss after tax: €-24.98 million (up 55% year-over-year).

• Earnings per share: €-2.61 (vs. €-1.68 in H1 2023).

• Free cash flow improved to €-4.13 million from €-11.11 million in H1 2023.

• Cash and cash equivalents at period end: €2.53 million.

Outlook and guidance

• The company expects continued macroeconomic headwinds and is focused on reconnecting with core customers through product innovation and operational improvements.

• Cost-saving measures and operational streamlining are expected to yield sustainable benefits into 2025.

• Lanvin Group Holdings has issued a comfort letter guaranteeing financial support through July 2026.