Lanvin Group Shows Resiliency in Sales and On-Track Margin Improvement in 2023
Lanvin Group reported a 1% increase in revenue to €426 million for FY2023, with gross profit margin reaching 59%. Positive trends include steady regional growth, improving store metrics, and on-track cashflow breakeven in 2025. Despite challenges, the Group remains resilient and focused on brand optimization and profitability. Key financials show improved margins across various brands, though Adjusted EBITDA is still negative.
Steady revenue growth of 1% to €426 million in FY2023
Gross profit margin increased to 59%
Regional growth highlighted by nearly 8% growth in APAC
Improving store metrics and footprint rationalization strategy on track
On track for cashflow breakeven in 2025
Brand and product strategies optimization showing positive results
Adjusted EBITDA remains negative in 2023
Decline in Lanvin brand revenue by 7% in 2023
Some brands experienced margin decline or contribution profit loss
Revenue Continues Year-over-Year Growth Trend
- Revenue of
€426 million for FY2023, a1% increase over FY2022 despite macroeconomic headwinds - Continued margin improvement with Group gross profit margin increasing to
59% and both contribution profit(1) and adjusted EBITDA margins steadily improving - Resilient performance of the brands through challenging market environment; Lanvin brand showed improving trend in the second half of the year while overall industry faced strong headwinds
- Steady regional performance highlighted by nearly
8% growth in APAC - Improving store metrics with steady DTC revenue on a lower base of stores showed footprint rationalization strategy on track; first Middle East Lanvin location opened in
Riyadh with two more anticipated in the coming months - On track for cashflow breakeven in 2025 with Caruso achieving breakeven Adjusted EBITDA in 2023 and two additional brands expected to achieve Adjusted EBITDA breakeven in 2024
Zhen Huang, Chairman of Lanvin Group, said: "I'm honored to have become the Chairman of Lanvin Group in 2023. The Group has made significant progress since its inception in 2018. In reviewing our 2023, I thought back to the resiliency we showed during the pandemic, posting growth every year, and I see the same resilience and our ability to thrive in any environment, this past year. I believe we are on the right track and am optimistic we will reach our growth and profitability goals."
Eric Chan, CEO of Lanvin Group, said: "Managers drive companies, and their teams drive results. I am thoroughly impressed by the efforts of our managers and our teams to maintain growth and continue to forge the path to profitability in a challenging market environment. My team, along with our brand managers remain resolute in our mission to grow our brands and drive profitability.
We are a group of brands with a provenance and heritage second-to-none, and I am proud of what we have accomplished in 2023. We are collectively on a journey, and I am very optimistic about our future."
Review of the Full-Year 2023 Results
Lanvin Group Revenue by Segment | ||||||||
(€ in Thousands, unless otherwise noted) | ||||||||
Lanvin Group by Brand | Revenue | Growth % | ||||||
2020A | 2021A | 2022A | 2023A | 2021A v | 2022 A v | 2023 A v | 20-23 | |
FY | FY | FY | FY | 2020A | 2021 A | 2022 A | CAGR | |
Lanvin | 34,989 | 72,872 | 119,847 | 111,740 | 108 % | 64 % | -7 % | 47 % |
Wolford | 95,384 | 109,332 | 125,514 | 126,280 | 15 % | 15 % | 1 % | 10 % |
St. John | 66,512 | 73,094 | 85,884 | 90,398 | 10 % | 17 % | 5 % | 11 % |
Sergio Rossi | 0 | 28,737 | 61,929 | 59,518 | 116 % | -4 % | ||
Caruso | 26,351 | 24,695 | 30,819 | 40,011 | -6 % | 25 % | 30 % | 15 % |
Total Brand | 223,236 | 308,730 | 423,993 | 427,947 | 38 % | 37 % | 1 % | 24 % |
Eliminations | -624 | 92 | -1,681 | -1,769 | -115 % | -1927 % | 5 % | 42 % |
Total Group | 222,612 | 308,822 | 422,312 | 426,178 | 39 % | 37 % | 1 % | 24 % |
Lanvin Group Key Financials | ||||||||
(€ in Thousands, unless otherwise noted) | ||||||||
Lanvin Group Key | 2020A | 2021A | 2022A | 2023A | ||||
FY | % | FY | % | FY | % | FY | % | |
Revenue | 222,612 | 100 % | 308,822 | 100 % | 422,312 | 100 % | 426,178 | 100 % |
Gross profit | 117,394 | 53 % | 169,902 | 55 % | 237,944 | 56 % | 250,942 | 59 % |
Contribution profit | -34,237 | -15 % | 4,400 | 1 % | 13,211 | 3 % | 24,192 | 6 % |
Adjusted EBITDA | -88,116 | -40 % | -58,945 | -19 % | -71,958 | -17 % | -64,173 | -15 % |
Selected Highlights
Maintained growth trend: In the face of growing headwinds for the industry, the Group maintained growth with a
Continued positive progress with margin profile: Margins at all levels, gross profit, contribution profit, and Adjusted EBITDA saw improvement in 2023. Gross margin increased to
Refocused brand and product strategies showing results: One of the main drivers of growth in 2023 was the refocus of brand strategies and optimization of product categories and mix. New product lines and categories, collaborations, and a focus on accessories all impacted the growth and margins. Lanvin brand went through a creative transition in 2023, further cementing the vision for the future of the Group to harness each brand's legacy and utilize its archives as we evolve our product categories and offerings.
Significant progress optimizing store network: The Group continued to cull its footprint with the closure of 36 stores while successfully launching 24 new retail doors, systemwide. Improved store strategies implemented in 2023 provided better unit economics, with the Group's DTC revenue remaining steady despite an overall reduction of retail doors. Improved store metrics from strategic changes implemented starting in 2022 have paved the way for Lanvin to grow its base significantly with five, net new locations and its first in the
Discussion of FY2023 Financials
Revenue
For FY2023, the Group generated revenue of
Gross Profit
Gross profit increased to
Contribution Profit (1)
The Group uses a measure, internally, called contribution profit, defined as gross profit less selling & marketing expenses to gauge the variable profitability performance and analyze the improvements at our brands. Contribution profit for the year was
Adjusted EBITDA
Adjusted EBITDA remained at loss for 2023, but as a percentage of sales, continued to improve going from (
Results by Segment
Lanvin: Revenue was down, but the brand improved the trend in the second half of 2023, improving from a
Wolford: Revenue grew slightly by
Sergio Rossi: Revenue was down by
St. John: Revenue increased by
Caruso: Revenue increased significantly by
2024 Outlook
The macroeconomy remains uncertain, but regions like
The Group plans to approach the market tactically to capture growth opportunities and market share. With one brand Adjusted EBITDA breakeven in 2023 and two additional brands expected to be in 2024, the Group is making significant progress in its path to profitability; and with much of the legwork of streamlining the organization completed, the Group sees scale expansion as a key driver of profitability, for 2024 and beyond.
The Group is built upon a collaborative eco-system and continues to work with their strategic partners to build the platform. As such, one of the Group's focuses in 2024 will be the continued development of its eco-system with additional strategic partners that will facilitate regional growth, improve logistics and expand product categories.
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 margin, adjusted earnings before interest and taxes ("Adjusted EBIT"), and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Please see Non-IFRS Financial Measures and Definition. |
(1) Contribution profit defined as gross profit less Selling and Marketing Expenses |
Annual Report on Form 20-F
Our annual report on Form 20-F, including the consolidated financial statements for the fiscal year ended December 31, 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 full-year 2023 and provide an outlook for 2024. 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 register by clicking on the following link: https://dpregister.com/sreg/10188721/fc6969ad02
A replay of the conference call will be accessible approximately one hour after the live call until May 6, 2024, 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: 1551559
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.
Next Scheduled Announcement
The next scheduled announcement will be the H1 2024 earnings results release in August 2024. To receive email alerts of the timing of future financial news releases, as well as future announcements, please register at https://ir.lanvin-group.com.
About Lanvin Group
Lanvin Group is a leading global luxury fashion group headquartered in
Forward-Looking Statements
This communication, including the section "2024 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 margin, 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
Hezhi Zhang
hezhi.zhang@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 | 2020A | 2021A | 2022A | 2023A | ||||||||||||||||||
FY | % | FY | % | FY | % | FY | % | |||||||||||||||
Revenue | 222,612 | 100 % | 308,822 | 100 % | 422,312 | 100 % | 426,178 | 100 % | ||||||||||||||
Cost of sales | -105,218 | -47 % | -138,920 | -45 % | -184,368 | -44 % | -175,236 | -41 % | ||||||||||||||
Gross profit | 117,394 | 53 % | 169,902 | 55 % | 237,944 | 56 % | 250,942 | 59 % | ||||||||||||||
Marketing and selling expenses | -151,631 | -68 % | -165,502 | -54 % | -224,733 | -53 % | -226,750 | -53 % | ||||||||||||||
General and administrative expenses | -115,181 | -52 % | -122,497 | -40 % | -153,138 | -36 % | -138,215 | -32 % | ||||||||||||||
Other operating income and expenses | -18,399 | -8 % | 10,083 | 3 % | -2,340 | -1 % | -4,534 | -1 % | ||||||||||||||
Loss from operations before non-underlying items | -167,817 | -75 % | -108,014 | -35 % | -142,267 | -34 % | -118,557 | -28 % | ||||||||||||||
Non-underlying items (1) | 43,546 | 20 % | 45,206 | 15 % | -83,057 | -20 % | -3,858 | -1 % | ||||||||||||||
Loss from operations | -124,271 | -56 % | -62,808 | -20 % | -225,324 | -53 % | -122,415 | -29 % | ||||||||||||||
Finance cost – net | -12,989 | -6 % | -9,313 | -3 % | -14,556 | -3 % | -20,431 | -5 % | ||||||||||||||
Loss before income tax | -137,260 | -62 % | -72,121 | -23 % | -239,880 | -57 % | -142,846 | -34 % | ||||||||||||||
Income tax expenses | 1,603 | 1 % | -4,331 | -1 % | 129 | 0 % | -3,407 | -1 % | ||||||||||||||
Loss for the period | -135,657 | -61 % | -76,452 | -25 % | -239,751 | -57 % | -146,253 | -34 % | ||||||||||||||
Contribution profit (2) | -34,237 | -15 % | 4,400 | 1 % | 13,211 | 3 % | 24,192 | 6 % | ||||||||||||||
Adjusted EBIT (2) | -162,428 | -73 % | -100,806 | -33 % | -134,836 | -32 % | -115,808 | -27 % | ||||||||||||||
Adjusted EBITDA (2) | -88,116 | -40 % | -58,945 | -19 % | -71,958 | -17 % | -64,173 | -15 % | ||||||||||||||
Lanvin Group Consolidated Balance Sheet | ||||
(€ in Thousands, unless otherwise noted) | ||||
Lanvin Group Consolidated Balance Sheet | 2020A | 2021A | 2022A | 2023A |
FY | FY | FY | FY | |
Assets | ||||
Non-current assets | ||||
Intangible assets | 175,542 | 181,234 | 181,485 | 210,439 |
Goodwill | 69,323 | 69,323 | 69,323 | 69,323 |
Property, plant and equipment | 26,879 | 40,564 | 46,801 | 43,731 |
Right-of-use assets | 117,917 | 118,775 | 121,731 | 128,853 |
Deferred income tax assets | 13,608 | 17,070 | 17,297 | 13,427 |
Other non-current assets | 8,280 | 15,742 | 15,265 | 15,540 |
411,549 | 442,708 | 451,902 | 481,313 | |
Current assets | ||||
Inventories | 75,842 | 92,335 | 109,094 | 107,184 |
Trade receivables | 22,191 | 39,781 | 48,868 | 45,657 |
Other current assets | 23,353 | 41,706 | 30,467 | 25,650 |
Cash and bank balances | 44,935 | 88,981 | 91,897 | 28,130 |
166,321 | 262,803 | 280,326 | 206,621 | |
Total assets | 577,870 | 705,511 | 732,228 | 687,934 |
Liabilities | ||||
Non-current liabilities | ||||
Non-current borrowings | 11,399 | 11,212 | 18,115 | 32,381 |
Non-current lease liabilities | 104,382 | 102,987 | 105,986 | 112,898 |
Non-current provisions | 3,286 | 4,166 | 4,111 | 3,174 |
Employee benefits | 19,085 | 18,464 | 15,128 | 17,972 |
Deferred income tax liabilities | 53,284 | 54,179 | 54,660 | 52,804 |
Other non-current liabilities | 1,338 | 1,080 | 690 | 14,733 |
192,774 | 192,088 | 198,690 | 233,962 | |
Current liabilities | ||||
Trade payables | 47,436 | 58,151 | 73,114 | 78,576 |
Bank overdrafts | 764 | 14 | 148 | 280 |
Current borrowings | 7,438 | 55,559 | 15,370 | 35,720 |
Current lease liabilities | 32,503 | 37,072 | 34,605 | 32,871 |
Current provisions | 2,490 | 3,141 | 3,014 | 6,270 |
Other current liabilities | 44,070 | 68,660 | 106,481 | 134,627 |
134,701 | 222,597 | 232,732 | 288,344 | |
Total liabilities | 327,475 | 414,685 | 431,422 | 522,306 |
Net assets | 250,395 | 290,826 | 300,806 | 165,628 |
Equity | ||||
Equity attributable to owners of the Company | ||||
Share capital | 289,165 | 339,259 | 0 | 0 |
Treasury shares | 0 | -3 | -25,023 | -65,405 |
Other reserves | 81,198 | 149,460 | 762,962 | 806,677 |
Accumulated losses | -158,974 | -224,328 | -442,618 | -571,931 |
211,389 | 264,388 | 295,320 | 169,341 | |
Non- controlling interests | 39,006 | 26,438 | 5,486 | -3,713 |
Total equity | 250,395 | 290,826 | 300,806 | 165,628 |
Lanvin Group Consolidated Cash Flow | ||||
(€ in Thousands, unless otherwise noted) | ||||
Lanvin Group Consolidated Cash Flow | 2020A | 2021A | 2022A | 2023A |
FY | FY | FY | FY | |
Net cash used in operating activities | -87,297 | -73,088 | -80,851 | -57,891 |
Net cash flows from/(used in) investing activities | 67,038 | 6,346 | -21,799 | -38,615 |
Net cash flows generated from financing activities | -41,447 | 110,065 | 104,937 | 34,131 |
Net increase/(decrease) in cash and cash equivalents | -61,706 | 43,323 | 2,287 | -62,375 |
Cash and cash equivalents less bank overdrafts at the beginning of the | 106,642 | 44,171 | 88,658 | 91,749 |
Effect of foreign exchange rate changes | -765 | 1,164 | 804 | -1,524 |
Cash and cash equivalents less bank overdrafts at end of the year | 44,171 | 88,658 | 91,749 | 27,850 |
Lanvin Brand Key Financials (3) | |||||||||||||
(€ in Thousands, unless otherwise noted) | |||||||||||||
Lanvin Brand Key Financials | 2020A | 2021A | 2022A | 2023A | 2021 A v | 2022 A v | 2023 A v | 20-23 | |||||
FY | % | FY | % | FY | % | FY | % | 2020 A | 2021 A | 2022 A | CAGR | ||
Key Financials on P&L | |||||||||||||
Revenues | 34,989 | 100 % | 72,872 | 100 % | 119,847 | 100 % | 111,740 | 100 % | 108 % | 64 % | -7 % | 47 % | |
Gross profit | 13,573 | 39 % | 34,028 | 47 % | 60,513 | 50 % | 64,547 | 58 % | |||||
Selling and distribution expenses | -43,147 | -123 % | -58,124 | -80 % | -75,852 | -63 % | -76,533 | -68 % | |||||
Contribution profit (2) | -29,574 | -85 % | -24,096 | -33 % | -15,339 | -13 % | -11,986 | -11 % | |||||
Revenues by Geography | |||||||||||||
EMEA | 18,501 | 53 % | 31,683 | 43 % | 61,092 | 51 % | 51,585 | 46 % | 71 % | 93 % | -16 % | 41 % | |
4,525 | 13 % | 15,964 | 22 % | 28,524 | 24 % | 28,210 | 25 % | 253 % | 79 % | -1 % | 84 % | ||
10,054 | 29 % | 23,541 | 32 % | 25,742 | 21 % | 24,649 | 22 % | 134 % | 9 % | -4 % | 35 % | ||
Other | 1,909 | 5 % | 1,684 | 2 % | 4,489 | 4 % | 7,296 | 7 % | -12 % | 167 % | 63 % | 56 % | |
Revenues by Channel | |||||||||||||
DTC | 16,959 | 48 % | 46,134 | 63 % | 58,536 | 49 % | 55,357 | 50 % | 172 % | 27 % | -5 % | 48 % | |
Wholesale | 12,974 | 37 % | 21,161 | 29 % | 51,898 | 43 % | 39,933 | 36 % | 63 % | 145 % | -23 % | 45 % | |
Other | 5,056 | 14 % | 5,577 | 8 % | 9,413 | 8 % | 16,450 | 15 % | 10 % | 69 % | 75 % | 48 % | |
Wolford Brand Key Financials (3) | |||||||||||||
(€ in Thousands, unless otherwise noted) | |||||||||||||
Wolford Brand Key Financials | 2020A | 2021A | 2022A | 2023A | 2021 A v | 2022 A v | 2023 A v | 20-23 | |||||
FY | % | FY | % | FY | % | FY | % | 2020 A | 2021 A | 2022 A | CAGR | ||
Key Financials on P&L | |||||||||||||
Revenues | 95,384 | 100 % | 109,332 | 100 % | 125,514 | 100 % | 126,280 | 100 % | 15 % | 15 % | 1 % | 10 % | |
Gross profit | 65,865 | 69 % | 79,070 | 72 % | 86,228 | 69 % | 83,339 | 66 % | |||||
Selling and distribution expenses | -65,006 | -68 % | -59,351 | -54 % | -81,901 | -65 % | -79,060 | -63 % | |||||
Contribution profit (2) | 859 | 1 % | 19,719 | 18 % | 4,327 | 3 % | 4,279 | 3 % | |||||
Revenues by Geography | |||||||||||||
EMEA | 73,794 | 77 % | 79,236 | 72 % | 86,501 | 69 % | 85,084 | 67 % | 7 % | 9 % | -2 % | 5 % | |
16,367 | 17 % | 21,824 | 20 % | 31,535 | 25 % | 31,310 | 25 % | 33 % | 44 % | -1 % | 24 % | ||
4,867 | 5 % | 7,289 | 7 % | 6,791 | 5 % | 9,176 | 7 % | 50 % | -7 % | 35 % | 24 % | ||
Other | 356 | 0 % | 983 | 1 % | 687 | 1 % | 710 | 1 % | 176 % | -30 % | 3 % | 26 % | |
Revenues by Channel | |||||||||||||
DTC | 62,323 | 65 % | 74,622 | 68 % | 90,408 | 72 % | 87,352 | 69 % | 20 % | 21 % | -3 % | 12 % | |
Wholesale | 33,061 | 35 % | 34,710 | 32 % | 34,426 | 27 % | 38,071 | 30 % | 5 % | -1 % | 11 % | 5 % | |
Other | 0 | 0 % | 0 | 0 % | 680 | 1 % | 857 | 1 % | 26 % | ||||
Sergio Rossi Brand Key Financials (3) | |||||||||||||
(€ in Thousands, unless otherwise noted) | |||||||||||||
Sergio Rossi Brand Key Financials | 2020A | 2021A | 2022A | 2023A | 2021 A v | 2022 A v | 2023 A v | 20-23 | |||||
FY | % | FY | % | FY | % | FY | % | 2020 A | 2021 A | 2022 A | CAGR | ||
Key Financials on P&L | |||||||||||||
Revenues | 59,206 | 100 % | 28,737 | 100 % | 61,929 | 100 % | 59,518 | 100 % | 5 % | 116 % | -4 % | 44 % | |
Gross profit | 13,319 | 46 % | 31,048 | 50 % | 30,435 | 51 % | |||||||
Selling and distribution expenses | -9,489 | -33 % | -24,502 | -40 % | -23,097 | -39 % | |||||||
Contribution profit (2) | 3,830 | 13 % | 6,546 | 11 % | 7,338 | 12 % | |||||||
Revenues by Geography | |||||||||||||
EMEA | 33,435 | 56 % | 17,009 | 59 % | 35,023 | 57 % | 31,801 | 53 % | 5 % | 106 % | -9 % | 37 % | |
1,290 | 2 % | 107 | 0 % | 1,181 | 2 % | 2,006 | 3 % | -8 % | 1004 % | 70 % | 333 % | ||
11,331 | 19 % | 4,595 | 16 % | 10,809 | 17 % | 11,872 | 20 % | -5 % | 135 % | 10 % | 61 % | ||
Other | 13,150 | 22 % | 7,027 | 24 % | 14,916 | 24 % | 13,838 | 23 % | 13 % | 112 % | -7 % | 40 % | |
Revenues by Channel | |||||||||||||
DTC | 28,911 | 49 % | 14,349 | 50 % | 31,910 | 52 % | 32,962 | 55 % | 10 % | 122 % | 3 % | 52 % | |
Wholesale | 30,295 | 51 % | 14,389 | 50 % | 30,019 | 48 % | 26,556 | 45 % | -1 % | 109 % | -12 % | 36 % | |
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 | 2020A | 2021A | 2022A | 2023A | 2021 A v | 2022 A v | 2023 A v | 20-23 | |||||
FY | % | FY | % | FY | % | FY | % | 2020 A | 2021 A | 2022 A | CAGR | ||
Key Financials on P&L | |||||||||||||
Revenues | 66,512 | 100 % | 73,094 | 100 % | 85,884 | 100 % | 90,398 | 100 % | 10 % | 17 % | 5 % | 11 % | |
Gross profit | 32,987 | 50 % | 38,987 | 53 % | 52,642 | 61 % | 57,374 | 63 % | |||||
Selling and distribution expenses | -42,273 | -64 % | -37,697 | -52 % | -42,498 | -49 % | -46,695 | -52 % | |||||
Contribution profit (2) | -9,286 | -14 % | 1,290 | 2 % | 10,144 | 12 % | 10,679 | 12 % | |||||
Revenues by Geography | |||||||||||||
EMEA | 2,254 | 3 % | 779 | 1 % | 1,224 | 1 % | 1,541 | 2 % | -65 % | 57 % | 26 % | -12 % | |
60,528 | 91 % | 65,534 | 90 % | 78,774 | 92 % | 81,382 | 90 % | 8 % | 20 % | 3 % | 10 % | ||
2,919 | 4 % | 6,467 | 9 % | 5,153 | 6 % | 7,161 | 8 % | 122 % | -20 % | 39 % | 35 % | ||
Other | 811 | 1 % | 315 | 0 % | 733 | 1 % | 314 | 0 % | -61 % | 133 % | -57 % | -27 % | |
Revenues by Channel | |||||||||||||
DTC | 44,778 | 67 % | 51,581 | 71 % | 66,412 | 77 % | 71,007 | 79 % | 15 % | 29 % | 7 % | 17 % | |
Wholesale | 21,734 | 33 % | 21,513 | 29 % | 19,077 | 22 % | 19,126 | 21 % | -1 % | -11 % | 0 % | -4 % | |
Other | 0 | 0 % | 0 | 0 % | 395 | 0 % | 265 | 0 % | -33 % | ||||
Caruso Brand Key Financials (3) | |||||||||||||
(€ in Thousands, unless otherwise noted) | |||||||||||||
Caruso Brand Key Financials | 2020A | 2021A | 2022A | 2023A | 2021 A v | 2022 A v | 2023 A v | 20-23 | |||||
FY | % | FY | % | FY | % | FY | % | 2020 A | 2021 A | 2022 A | CAGR | ||
Key Financials on P&L | |||||||||||||
Revenues | 26,351 | 100 % | 24,695 | 100 % | 30,819 | 100 % | 40,011 | 100 % | -6 % | 25 % | 30 % | 15 % | |
Gross profit | 4,881 | 19 % | 4,449 | 18 % | 7,147 | 23 % | 11,351 | 28 % | |||||
Selling and distribution expenses | -1,708 | -6 % | -1,144 | -5 % | -1,446 | -5 % | -1,900 | -5 % | |||||
Contribution profit (2) | 3,173 | 12 % | 3,305 | 13 % | 5,701 | 18 % | 9,451 | 24 % | |||||
Revenues by Geography | |||||||||||||
EMEA | 20,318 | 77 % | 19,475 | 79 % | 23,050 | 75 % | 33,739 | 84 % | -4 % | 18 % | 46 % | 18 % | |
4,252 | 16 % | 3,272 | 13 % | 5,833 | 19 % | 4,580 | 11 % | -23 % | 78 % | -21 % | 3 % | ||
480 | 2 % | 549 | 2 % | 559 | 2 % | 44 | 0 % | 14 % | 2 % | -92 % | -55 % | ||
Other | 1,301 | 5 % | 1,399 | 6 % | 1,377 | 4 % | 1,648 | 4 % | 8 % | -2 % | 20 % | 8 % | |
Revenues by Channel | |||||||||||||
DTC | 0 | 0 % | 0 | 0 % | 0 | 0 % | 40 | 0 % | |||||
Wholesale | 26,351 | 100 % | 24,695 | 100 % | 30,819 | 100 % | 39,971 | 100 % | -6 % | 25 % | 30 % | 15 % | |
Other | 0 | 0 % | 0 | 0 % | 0 | 0 % | 0 | 0 % | |||||
Lanvin Group Brand Footprint | ||||||
Footprint by Brand | 2021 | 2022 | 2023 | |||
DOS (4) | POS (5) | DOS (4) | POS (5) | DOS (4) | POS (5) | |
Lanvin | 27 | 287 | 31 | 339 | 36 | 319 |
Wolford | 167 | 227 | 163 | 225 | 150 | 201 |
St. John | 48 | 133 | 46 | 106 | 45 | 107 |
Sergio Rossi | 50 | 328 | 50 | 346 | 48 | 289 |
Caruso | 1 | 144 | 1 | 189 | 0 | 183 |
Total | 293 | 1,119 | 291 | 1,205 | 279 | 1,099 |
Non-IFRS Financial Measures Reconciliation | ||||
(€ in Thousands, unless otherwise noted) | ||||
Reconciliation of Contribution Margin | 2020A | 2021A | 2022A | 2023A |
FY | FY | FY | FY | |
Revenue | 222,612 | 308,822 | 422,312 | 426,178 |
Cost of sales | -105,218 | -138,920 | -184,368 | -175,236 |
Gross profit | 117,394 | 169,902 | 237,944 | 250,942 |
Marketing and selling expenses | -151,631 | -165,502 | -224,733 | -226,750 |
Contribution profit (2) | -34,237 | 4,400 | 13,211 | 24,192 |
(€ in Thousands, unless otherwise noted) | ||||
Reconciliation of Adjusted EBIT & EBITDA | 2020A | 2021A | 2022A | 2023A |
FY | FY | FY | FY | |
Loss for the year | -135,657 | -76,452 | -239,751 | -146,253 |
Add / (Deduct) the impact of: | ||||
Income tax benefits / (expenses) | -1,603 | 4,331 | -129 | 3,407 |
Finance cost—net | 12,989 | 9,313 | 14,556 | 20,431 |
Non-underlying items (1) | -43,546 | -45,206 | 83,057 | 3,858 |
Loss from operations before non-underlying items | -167,817 | -108,014 | -142,267 | -118,557 |
Add / (Deduct) the impact of: | ||||
Share based compensation | 5,389 | 7,208 | 7,431 | 2,749 |
Adjusted EBIT (2) | -162,428 | -100,806 | -134,836 | -115,808 |
Depreciation / Amortization | 48,332 | 41,584 | 45,810 | 46,946 |
Provisions and impairment losses | 22,676 | 10,766 | 16,729 | 79 |
Net foreign exchange (gains) / losses | 3,304 | -10,489 | 339 | 4,610 |
Adjusted EBITDA (2) | -88,116 | -58,945 | -71,958 | -64,173 |
Note: |
(1) 2022 was impacted by a |
(2) These are Non-IFRS Financial Measures and will be mentioned throughout this communication. Please see Non-IFRS Financial Measures and Definition. |
(3) Brand-level results are presented exclusive of eliminations. |
(4) DOS refers to Directly Operated Stores which include boutiques, outlets, concession shop-in-shops and pop-up stores. |
(5) POS refers to Point of Sales which include DOS and wholesale accounts. |
Non-IFRS Financial Measures and Definition
Our management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: contribution profit, contribution margin, Adjusted EBIT and Adjusted EBITDA. Our management believes that these non-IFRS financial measures provide useful and relevant information regarding our performance and improve their 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 margin is defined as contribution profit divided by revenue.
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
FAQ
What was Lanvin Group's revenue for FY2023?
Lanvin Group reported revenue of €426 million for FY2023.
What is the gross profit margin for Lanvin Group in 2023?
The gross profit margin for Lanvin Group reached 59% in 2023.
How many brands are in Lanvin Group's portfolio?
Lanvin Group has Lanvin, Wolford, Sergio Rossi, St. John, and Caruso in its portfolio of brands.
What is Lanvin Group's strategy for profitability in 2024?
Lanvin Group plans to focus on capturing growth opportunities, achieving profitability with more brands, and expanding its scale in 2024.
What is Lanvin Group's key focus for 2024?
Lanvin Group's key focus in 2024 will be the continued development of its eco-system with additional strategic partners to facilitate regional growth and expand product categories.
