The following is a summary of the Lanvin Group Holdings Limited (LANV) Q4 2023 Earnings Call Transcript:
Financial Performance:
Lanvin Group reported a revenue of €426 million in 2023, marking a 1% growth from 2022, and a three-year compound annual growth of 24%.
Gross profit increased to €251 million, improving the margin to 59% from 56% in 2022.
The APAC region and e-commerce showed growth of 8% and 3% respectively. The US digital platform has been a key player in this aspect.
Profit margins showed an overall improvement with gross profit margin by over 250 basis points, contribution profit margin by 255 basis points, and adjusted EBITDA margin near 200 basis points.
Lanvin brand saw a decrease of 7% in revenue due to industry-wide difficulties, but gross profit improved to 58%.
Wolford improved profitability by more than €10 million compared to 2022 and Sergio Rossi's DTC growth grew especially in the APAC region.
St. John saw 5% growth in 2023, with Direct-to-consumer (DTC) revenue improved by 7% and e-commerce growth of 14%.
Caruso demonstrated significant growth and margin improvement, through strategic restructuring efforts, achieved breakeven adjusted EBITDA in Q1 2023.
Business Progress:
Lanvin Group successfully launched its US digital platform and made considerable progress in enhancing the delivery vehicle and improving retail footprint.
Brands such as Wolford and Caruso have made significant progress regarding product development, strategic alignment, and market expansion.
The group is adopting a strategy focused on rationalization with plans to introduce more of Wolford's leisure wear and leggings due to their success.
The orientation towards accessories and leather goods sectors is gaining momentum with plans to improve gross profit margin, inventory turns, and merchandising strategy.
The company has revised its goal, aiming for cash breakeven at a group level by 2025 due to unforeseen macroeconomic headwinds.
Future focus areas include balancing regional growth both in retail and online, expanding market share, and accelerating footprint growth with Lanvin Lab as a key growth driver.
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