Lanvin Group (LANV) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue was €171 million, down 20% year-over-year, reflecting global luxury market softness and wholesale channel struggles.

• Gross profit margin remained resilient at 57.5%, declining just 1% despite revenue drop, 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 executive leadership appointments at Lanvin, Sergio Rossi, and Wolford to drive future growth.

• Integration issues at Wolford's new 3PL provider caused shipping delays, impacting revenue.

Financial highlights

• Group revenue for H1 2024 was €171 million, down 20% year-over-year; DTC revenue declined 14%, wholesale revenue down 30%.

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

• Adjusted EBITDA loss of €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% and contribution profit was -€7 million.

Outlook and guidance

• Continued focus on cost efficiency and margin improvement across all brands in H2 2024.

• Further investment in marketing and product development, especially for upcoming collections by new creative directors.

• Tactical retail network expansion in opportunity zones, particularly in the Middle East.

• Management expects a challenging H2 2024 but positions brands for future recovery.