LANV

Thank you for joining us, and welcome to the Lanvin Group's 2026 first half financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. Now, please take a moment to review the disclaimers. During this presentation, the company will be making certain forward-looking statements, including but not limited to future performance and industry outlook. Forward-looking statements are inherently subject to risks, uncertainties, and other factors, and they are not guarantee of performance. For today's presentation, I would like to introduce Ross Luo, CFO of Lanvin Group. With that, I would like to turn it over to Ross to start the presentation.

Thanks very much. Welcome, everyone, and good morning. I am Ross, and I am very pleased to join Lanvin Group as the Chief Financial Officer, in June this year. I look forward to working with Andy and also our brand leadership team to further strengthen the group's financial performance and to support the next phase of our transformation. The first half of 2026 was an important period for the group as we continued to execute our transformation while operating in a still very challenging luxury market environment. We have made meaningful progress on the quality and the efficiency of the business. Gross margin improved to 59%, while the contribution profit and adjusted EBITDA margins have both improved by 7.7 percentage points and 10.7 percentage points, respectively. At the group level, revenue was EUR 101 million, down 13% on a year-over-year basis.

This reflects the broader transformation and the rationalization of the business on the way across all of our brands. I wanted to highlight that our e-commerce business returned to growth in the first half of 2026, and we continue to make progress in reshaping the retail footprint with 151 directly operated stores by the end of June 2026. The most important takeaway from the first half I wanted to share with you is that the transformation is translating into a leaner and more efficient operating process. We are now focused on taking that foundation and converting that to renewed growth. Now please allow me to briefly highlight some of the developments across the four brands that we have. At Lanvin, the house continued to build creative momentum with its FW26 Paris runway, received a strong response from the market.

The brand also marked an important milestone with the 100th anniversary of Lanvin Menswear and further strengthened its leadership during the time. At Wolford, we saw encouraging stabilization in the underlying business. Gross margin recovered to approximately 60%, while the brand continued to strengthen its supply chain capabilities and advance its ESG initiatives. We also entered a new leadership chapter with Marco Pozzo as the CFO and also Chairman. At Sergio Rossi, the focus has been on repositioning the business around a more focused and asset-light model. The brand has streamlined its supplier base, strengthened the strategic partnerships, and also continued to rationalize its retail network. Importantly, wholesale, excluding third-party production, has grown 21% year-over-year, giving us a stronger base to build on that in the second half. At St. John, we continue to see resilience in the underlying business.

E-commerce grew 31% in its reporting currency, and the growth margin remained very strong at approximately 70%. The brand is developing new channel opportunities while preparing for its next chapter of creative development in the second half. Across our portfolio, we are seeing encouraging signs that the work on the brand's products and operating model is beginning to create a stronger foundation for future growth. Let's now turn to our priorities for the second half of the year. Our priority is to continue executing the reset and the transformation agenda. This includes the ongoing optimization of our retail footprint and also further improvements in how we operate across the group. Secondly, we want to move beyond the optimization and focus increasingly on growth opportunities across different markets, channels, and product categories.

Thirdly, we will make greater use of partnerships and collaborations to extend the reach of our brands, access new customers, and develop additional revenue opportunities, including through asset-light models. Finally, we'll also remain disciplined on costs, working capital, and cash while selectively investing behind the areas that can generate the strongest returns. In addition, we will continue to optimize the group's brand portfolio, ensuring that our resources remain focused on the brands and opportunities with the strongest long-term potential. We believe the combination of a leaner operating model, stronger brand leadership

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Apologies for dropping off for technical issues. I can resume. We believe the combination of the leaner operating model and the stronger brand leadership, and a more focused approach to growth will give us a solid platform for the next phase. Now, please allow me to turn everybody's attention to the group's financial performance in the first half of 2026. As mentioned previously, the revenue for first half was EUR 101 million, representing a 13% year-over-year decline. However, the more important feature of the first half was the substantial improvement in profitability. The growth margin of the group has increased from 57.7%-59%, and the contribution profit margin improved from -15.6% to -8.9%, while the adjusted EBITDA margin improved from -45% to -34%.

In absolute terms, the contribution profit has improved by approximately EUR 10 million, and the adjusted EBITDA improved by approximately EUR 17 million. These improvements reflect the benefits of our efficiency programs, lower selling expenses, and also a more disciplined base cost structure. We have seen tangible evidence that the reset is improving the economics of the business, even before a broader revenue recovery is reflected in the results. Page eight put our first half revenue performance into a longer-term perspective. The decline in revenue this year reflects both the market environment and the deliberate actions we have taken to reshape the portfolio and distribution footprint. In particular, we have continued to rationalize underperforming retail locations, while encouraging like-for-like performance has partially offset the impact of those closures.

While rebuilding the top line remains an area of focus for us, we are also entering the second half with a more focused network, a lower cost base, and also improving digital momentum. Page nine highlights the improvement in our operating cost structure. We have continued to reduce the cost base across the group while being very selective about where we maintain or increase investment. Marketing and selling expenses have become more efficient, while G&A has also declined significantly from prior periods. These actions have translated directly into the significant improvement in profitability that we delivered in H1. The next page 10, shows the evolution of the G&A costs across the portfolio. Since the first half of 2023, we have continued to reduce brand level G&A by approximately 30% at Lanvin, 50% at Wolford, 45% at Sergio Rossi, and 43% at St. John.

These reductions reflect a combination of organizational simplification, tighter spending discipline, and a more focused operating model. At the same time, we continued to selectively invest in the areas that are critical to long-term brand development, including creativity, product, and customer engagement. The balance we are aiming for is very clear. A leaner cost base without compromising the capabilities that are required to grow our brands. Page 11 continues to cover our retail footprint. As mentioned during the first half, we continued to re-rationalize the network, reducing directly operated stores from 174 at the end of 2025 to 151 at the end of June 2026. This remains an ongoing process. We are continuing to rationalize the underperforming locations in the stores while selectively pursuing strategic openings where we see appropriate. The objective is to create a more focused and productive retail platform with stronger economics and a better customer experience.

As this work continues, we are also increasingly focused on driving productivity within the existing network and through traffic generation, clienteling, merchandising, and services. I will now move to the individual brand results, starting with Lanvin first. Lanvin generated revenue of EUR 22.9 million in the first half, down by 17.9%.

Ladies and gentlemen, we have disconnected with our speaker. Please stay on the line while we reconnect. Ladies and gentlemen, thank you for your patience. Ross, you may begin.

Yeah. As I just told about to continue, Lanvin generated a revenue of EUR 22.9 million in the first half. More importantly, the underlying performance showed several encouraging trends. On a like-for-like basis, sales across boutique stores remained positive despite store closures, while the wholesale revenue increased by 16%, supported by earlier Fall/Winter deliveries. The gross margin on Lanvin was a particular highlight, expanding by almost 390 basis points to 58.2%. This reflects a stronger sell-through and a better product lifecycle management. We also saw a meaningful improvement in contribution margin, with the loss reduced from EUR 12.3 million to EUR 6.2 million. In the second half, the focus is on converting this, improve the foundation into further growth. Now I will turn to Wolford. Wolford's revenue was EUR 31 million in the first half, down 6% year-over-year.

The business has shown improving momentum as its operating platform continues to stabilize. The DTC business of Wolford declined only by 2%, largely reflecting the ongoing store network optimization. Importantly, like-for-like retail remained positive, and the e-commerce business grew by 22%. The wholesale of Wolford was down by 12%, primarily because of timing related comparables from the prior year of first half. The partner sell-through, however, remained very encouraging for us. The strongest financial development was a recovery in growth margins, which increased from 56%-60%. In the second half, Wolford will build on this more stable platform by strengthening wholesale, expanding e-commerce and the marketplace initiatives, and also continue to improve productivity and customer engagement. Also, let's now turn to St. John. St. John's revenue was EUR 35.5 million, down by 10.5%, reflecting its retail footprint rationalization as well as unfavorable currency dynamics.

On a U.S. dollar basis, the decline was more limited, at only approximately 5%. The underlying business continues to show resilience. Most notably, the e-commerce business of St. John grew 31% in its reporting currency, supported by more effective digital acquisition, improved marketing ROI, and also growth in the new customer base. The brand is also developing new growth channels, including concession-based models, which are also helping to establish a more diversified growth pipeline. The growth margin of St. John increased to 69%, and the contribution margin improved to 12.3%. Looking ahead, St. John will build on its new creative leadership with two capsule collections planned for the second half and continue the development of proprietary yarns that will reinforce the brand's craftsmanship and also product differentiation. Finally, on Sergio Rossi.

Sergio Rossi's revenue was EUR 10.9 million, down 28.6% on a year-over-year basis as the brand continued to implement its planned channel strategy and transition towards a more focused asset-light model. Within the core business, there are positive indicators. The wholesale revenue, excluding third-party production, has increased to 21%, demonstrating renewed appetite from partners and creating a stronger platform for the second half. Third-party production revenue decreased by EUR 1.9 million, reflecting the planned phase-out of this activity as we want Sergio Rossi to transition towards a more focused and asset-light model. The gross margin was temporarily pressured by a shift in its channel mix, heavier clearance activity, and also the ongoing supply chain transition. We nevertheless maintained tight control over selling expense and other expenses, which will help maintain the impact on its contribution margin.

For the second half, the priority is to capitalize on the stronger reception of its SS27 collection, improve its wholesale and also sell-through, rebuild the margin through supplier negotiation, procurement discipline, and also supply chain optimization. Before we open to Q&A, let me summarize the first half results. The first half of 2026 for Lanvin Group marked a very meaningful progress of the group's transformation. While the revenue remained under pressure, we materially improved the bottom line while continuing to build a leaner and more efficient operating platform. We also continued to optimize our retail footprint while seeing encouraging developments across e-commerce, like-for-like retail performance, and wholesale at several of our brands. Looking ahead, our focus is very clear. Continue executing the transformation, co-create new avenues for revenue growth, leverage partnerships and collaborations, and maintain discipline in cost, working capital, and cash flow management.

We believe the progress achieved in the first half provides a stronger foundation from which to build sustainable growth across the portfolio. Thank you for everybody for joining us and also for your continued support to Lanvin Group. We will now be open for the line for questions. Thank you.

We will now begin the Q&A session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Once again, to ask a question, please press star then one to join the question queue. There appear to be no questions at this time, and this concludes our Q&A session, which also concludes the conference call. Thank you for attending today's presentation. You may now disconnect.

Thank you for joining us, and welcome to the Lanvin Group's fiscal year 2025 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please single a specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. Now, please take a moment to review the disclaimers. During this presentation, the company will be making certain forward-looking statements, including but not limited to, future performance and industry outlook. Forward-looking statements are inherently subject to risks, uncertainties, and other factors, and they are not guarantees of performance. For today's presentation, I would like to introduce Andy Lew, Executive President of Lanvin Group, and Ray Han, CFO of Lanvin Group. I will now turn it over to Andy to start the presentation.

Good evening, good afternoon, and good morning to everyone joining us today. Thank you for taking the time to participate in Lanvin Group's full-year 2025 results presentation. We truly appreciate your continued interest and support. Today, we will walk you through our financial and operational performance for 2025, discuss the progress we have made on our transformation journey, and share our outlook as we move into 2026. It has been a year of disciplined execution and important structural changes for the group, and we are pleased to begin sharing the story with you. 2025 was a year defined by both external challenges and internal transformation. On the one hand, the global luxury market remained under pressure, particularly in Greater China, with softer consumer demand and macroeconomic uncertainty.

On the other hand, we continue to take deliberate actions to reshape our business, streamlining operations, optimizing our retail footprint, and reinforcing our focus on core brands. For fiscal year 2025, Lanvin Group reported revenue of EUR 240 million, down 18% year-over-year. While the top line reflects these headwinds and strategic adjustments, we are encouraged by the progress we made beneath the surface. We saw sequential improvement in performance during the second half of the year, particularly at Lanvin and Wolford, which indicates that our actions are starting to take effect. We continue to streamline our retail footprint, focusing on our core business units and key regions. This has enhanced operational efficiency and allowed us to improve EBITDA despite lower revenue. We also accelerated our portfolio optimization efforts in 2025.

As part of this, we completed the carve-out of Caruso in the beginning of 2026, enabling us to concentrate resources on our core brands, leverage external partnerships, and further advance our asset-light operating model. Finally, we strengthened brand leadership through continuous team upgrades, ensuring we have the right capabilities in place to support long-term strategic execution. Overall, while the environment remains challenging, we have made meaningful progress in reshaping businesses and building a stronger foundation for the future. Page six highlights several key metrics. We landed with a gross margin of 58% in 2025, demonstrating resilience in pricing and inventory mix management despite lower volumes. We've also made meaningful progress in optimizing our cost base, achieving approximately 12% savings in operating expenses compared to the prior year.

The number of directly operated stores was reduced to 174, reflecting a deliberate shift toward higher quality, more productive locations. At the same time, we're increasingly adopting an asset-light model, allowing us to improve flexibility and capital efficiency. Encouragingly, contribution margin improved significantly in the second half of the year, increasing by 40% compared to the first half, reflecting the early impact of these initiatives. Page seven provides a deeper look at our half year performance and improving trajectory we began to see during 2025. Gross profit showed improvement in the second half of 2025 since first half of 2024, reflecting better product availability, improving sell-through, and more disciplined inventory management. At the same time, we continued to reduce operating expenses through structural cost optimization and improve efficiency across the organization.

This combination, stabilizing gross profit and lower operating costs, has started to improve our operating leverage. While we are still in a transition phase, these trends reinforce our confidence that the actions we have taken are moving us in the right direction. Another critical pillar of our transformation has been strengthening our leadership team. We made several key appointments across the group. At St. John, Mandy West has taken on the role of CEO, bringing strong commercial expertise and deep understanding of the brand. At Wolford, Marco Pozzo joined as CEO, adding extensive experience in luxury and global brand management. These leadership upgrades are not just organizational changes, they are essential enablers of execution. With stronger leadership in place, we are better equipped to drive brand development, improve operational discipline, and accelerate decision-making across the group.

We'll now take a closer look at the key strategies and achievements across each of our brands in 2025. This is where much of the transformation work has taken place. Let's begin with Lanvin. For Lanvin, 2025 was a year of repositioning and rebuilding. We introduced a refreshed creative direction under Peter Copping, reinforcing the brand's couture heritage while modernizing its appeal. Importantly, Peter's 2025 collections were positively received by the fashion press, with reviewers highlighting his return to Lanvin's heritage codes, refined elegance, and renewed creative direction. We noted the strong reception to his debut, reflecting encouraging early momentum around the brand's creative reset. At the same time, we focused heavily on operational fundamentals, reducing inventory, improving margin discipline, and optimizing the retail network. We also streamlined the organization to improve agility and execution.

With these actions impacted short-term revenue, they are critical to restoring the brand's long-term strength and desirability. Next, let's turn to Wolford. Wolford made significant progress during the year, despite challenges in the first half. We implemented a balanced product strategy, strengthening the core collection while introducing new offerings to enhance relevance. The brand celebrated its 75th anniversary, which played an important role in increasing visibility and reconnecting with customers globally. At the same time, we improved the omni-channel experience, enhancing both the digital platform and in-store environment. These efforts contributed to a strong recovery in the second half of the year. Now let's move to Sergio Rossi. Sergio Rossi continued its transformation journey toward a more efficient and flexible operating model. We focused on strengthening operational fundamentals, including supply chain improvements, closer alignment with key suppliers, and the resolution of legacy issues.

In parallel, we streamlined the retail network, concentrating on higher potential locations. Building on these efforts, we advanced the transition to an asset-light model and took a further step in direction through a strategic partnership, enabling greater focus on product development and merchandising while reducing operational complexity and mitigating production-related risk. This also improves cost flexibility, shifting part of the operating structure toward a more variable base while maintaining alignment and the brand's long-term development. Taken together, these actions are essential to stabilizing the business and positioning it for recovery. Let's review St. John. St. John continued to demonstrate strong resilience in 2025. The brand benefited from its strong position in North America, supported by solid wholesale performance and continued momentum in e-commerce.

We further strengthened our partnership with Nordstrom, including the expansion of our presence across additional locations, which contributed to over 40% growth and enhanced brand visibility. At the same time, we upgraded our digital capabilities by strengthening the e-commerce team and onboarding a new marketing agency, driving a double-digit increase in online sales versus the prior year. We also continue to refine our product offerings with a particular focus on knitwear, which remains a core strength of the brand and supported improved full price sell-through. In addition, our collaboration with Malbon in 2025 helped broaden the brand's audience, attract new customers, and further enhance brand awareness. Overall, St. John remains a stable and important contributor to the group with a clear focus on North America, disciplined execution, and continued brand development.

Looking ahead to 2026, our focus remains on completing the transformation and moving towards sustainable profitability. We will continue to advance the initiatives launched in 2025, including portfolio and channel optimization, cost discipline, and the transition to an asset-light model. At the brand level, we expect continued recovery at Lanvin and at Wolford, further progress at Sergio Rossi, and stable performance at St. John. While the macro environment remains uncertain, we believe these actions we have taken have created a stronger foundation for the future growth. With that, I will now hand over to Ray Han, our Chief Financial Officer, who will walk you through the financial results in more detail.

Thank you, Andy. I'll now walk you through our financial performance for 2025. Before going into the detailed financials, I'd like to briefly address the treatment of Caruso in our 2025 results. At the end of 2025, management team approved the strategic carve-out of Caruso as part of our portfolio optimization efforts. In line with IFRS requirements, Caruso has been classified as discontinued operation, with all comparative periods restated to exclude the business for consistency of presentation. The transaction was subsequently completed on February 6th this year, further reinforcing our commitment to streamline the portfolio and focus on long-term value creation. With that context in mind, let me walk you through the group's financial performance.

As Andy mentioned, 2025 was a year of transformation, and while it impacted our top-line performance, we did make meaningful progress to improve operational efficiency and financial discipline. Group revenue declined from EUR 292 million in 2024 to EUR 214 million in 2025. The decline was primarily driven by Lanvin and partly by Wolford and Sergio Rossi, reflecting both macroeconomic pressures and deliberate restructuring actions, including retail footprint optimization for all four brands, and brand repositioning globally. Overall, while revenue declined, it's very important to emphasize that it reflects strategic positions rather than purely demand-driven weakness. Let's now take a look at performance by region. From a regional perspective, North America continued to outperform other markets. It was largely supported by St. John's very strong presence and resilient performance in the region.

In contrast, the EMEA and Greater China experienced more significant declines, reflecting weaker consumer sentiment. Greater China in particular, saw a more pronounced decline consistent with broader market trends as we continued our store network review. These regional dynamics reinforced our strategic focus on strengthening our position in home market while selectively optimizing our presence in other regions. Looking at revenue by channel, DTC remained the largest contributor, accounting for approximately 68% of total revenue. Both DTC and wholesale declined year-over-year, reflecting both market conditions and our deliberate actions to streamline the retail network. At the same time, we saw encouraging signs of stabilization, particularly in wholesale at Wolford and St. John. Going forward, we will continue to balance DTC and wholesale channels with a focus on profitability and efficiency rather than purely the scale. Let's now move to our retail network.

As previously mentioned by Andy, store network optimization has been a very key component of our transformation since 2024, in line with broader trends across the luxury sector. The number of directly operated stores decreased from 225 in 2024 to 174 in 2025, reflecting our strategy to exit underperforming locations and concentrate resources on higher productivity stores in key markets. Despite the short-term impact on revenue, it will substantially improve the quality of our retail footprint, which is helpful for the long-term profitability of the group. Next, let's turn to profitability metrics. On this slide, we summarize the evolution of gross profit, contribution profit, and adjusted EBITDA. I'd like to highlight that while gross profit decreased in 2025, we managed to maintain the gross margin at 58%, reflecting lower sales volumes but relatively stable pricing and inventory management.

Contribution profit improved slightly year-over-year, supported by reductions in expenses. Adjusted EBITDA improved to a loss of EUR 90 million, demonstrating the early impact of our cost reduction initiatives. Overall, while our productivity remains negative, the trajectory is improving, particularly as we move into the second half of the year. Let's now break it down by brand. Wolford and St. John contributed positively to the improvement in Contribution profit, reflecting improved cost discipline and operational efficiency. Sergio Rossi saw a slight decrease, although it was partially offset by strict cost control measures. Lanvin remained broadly stable despite revenue decline, highlighting the effectiveness of cost management initiatives. At a group level, we saw a more balanced and improved cost structure. Let's now move to working capital. During the year, we continued to make progress in working capital management.

Inventory decreased from EUR 79 million in 2024 to EUR 57 million in 2025, and trade receivables decreased from EUR 21 million-EUR 15 million, reflecting tighter operational discipline and better alignment between supply and demand. At the same time, trade payables normalized from EUR 76 million-EUR 46 million. As a result, the cash conversion cycle increased to 65 days in 2025 from 34 days in 2024, and trade working capital increased to 11% of revenue from 8%. While inventory and receivables showed clear improvement, overall working capital efficiency was temporarily affected by payables normalization. Improving cash conversion and maintaining disciplined working capital management remain key priorities as declined by 30% to EUR 58 million in 2025. It reflects the ongoing repositioning of the brand as well as retail network optimization and reduced reliance on previous product categories.

Despite this, gross margin remained stable at around EUR 58 million, and contribution losses were broadly contained. Encouragingly, we saw signs of improvement in second half, particularly following the introduction of new creative directions from Peter Copping. Looking ahead, we expect continued progress as the brand reviews its product offering and strengthens its wholesale channel. Let's move to Wolford. Wolford revenue declined by 14% to EUR 76 million. The first half was impacted by prior logistics disruptions, but performance improved very significantly in the second half. Wholesale grew 19% year-over-year, supported by improved product availability and stronger execution. At the same time, contribution losses improved by EUR 5 million, reflecting better cost discipline. Looking ahead, we expect continued recovery driven by improved supply chain stability, stronger marketing and enhanced customer acquisition. Next, on Sergio Rossi.

Sergio Rossi revenue declined by 30% to EUR 13 million. Both DTC and wholesale channels were impacted, reflecting cautious market sentiment and ongoing brand transformation. Gross margin declined due to channel mix and lower production scale. However, cost control remained strict during the year, limiting the increase in contribution losses. Looking ahead, the focus is to improve production stability, strengthen wholesale partnerships, and continue the asset-light transition.

Next, let's review St. John. St. John delivered quite resilient performance during the year, with revenue declining only 1% to EUR 78 million. In its reporting currency, the brand grew by 3%, supported by strong performance in North America. Wholesale and e-commerce were key growth drivers, increasing by 14% and 25% in its reporting currency, respectively. Gross margin remains very strong at 69%, and contribution profit improved as well. St. John continues to be a stable component of the group. Okay, I will turn it back to Andy for closing remarks.

Thank you, Ray. In summary, 2025 was a year of disciplined execution and structural transformation. While the top-line performance reflects a challenging environment, the underlying improvements in cost structure, operational efficiency and brand positioning provide a stronger foundation for the future. We are encouraged by the momentum seen in the second half and remain focused on driving continued improvement in 2026. This concludes our prepared remarks. We will now open the call for any questions. Thank you.

Thank you, Ray and Andy. We will now open the floor for questions.

Thank you for joining us, and welcome to the Lanvin Group's 2025 First Half Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. Now please take a moment to review the disclaimers. During this presentation, the company will be making certain forward-looking statements, including, but not limited to, future performance and industry outlook. Forward-looking statements are inherently subject to risks, uncertainties and other factors and they are not guarantees of performance. For today's presentation, I would like to introduce Andy Lew, the Executive President of Lanvin Group; and David Chan, Executive President and CFO of Lanvin Group. With that, I'd like to turn it over to Andy Lew to start the presentation.

Thank you, and welcome, everyone. I'm Andy Lew, the Executive President of Lanvin Group. The story of our first half is navigating a tough climate while preparing for a stronger future. We operated against the backdrop of persistent global macroeconomic and geopolitical uncertainty. Performance at some of our brands was tempered by creative transitions as the market awaited new collections and by overall sector softness. Despite these challenges, I'm proud to highlight that St. John demonstrated remarkable resilience growing its core North American market despite the volatility. Most importantly, our strong cost discipline and accelerated retail footprint optimization began to deliver visible improvements in the second quarter. A positive trend we are focused on continuing. Our strategy is built for the long term, and we are confident that the foundational work we completed in the H1, particularly with our new creative leadership positions us to capture demand as conditions improve. Turning to Page 5. Let's review the brand level achievements in the first half that are shaping our future. At Lanvin, Peter Copping made his much anticipated return to Paris Fashion Week this January, earning strong global acclaim for his debut collection, which celebrated the House's timeless French elegance. At Wolford, the brand reinforced its essentials positioning with the In Your Own Skin campaign, further defining its identity around modern essentials that balance refined design with enduring relevance. Separately, Wolford also completed a capital increase in H1 to provide additional support for its strategic transformation. For Sergio Rossi, the first half was above anticipation. The brand unveiled Paul Andrew's first collection, massively emerging tradition with modern innovation, a collection we expect to drive fresh commercial traction in the second half. St. John successfully revived its most iconic archival designs and collaborated with golf brand Malbon on a sport-lux capsule, blending classic knitwear with modern aesthetics. And finally, Caruso, added new first-tier Maison accounts while maintaining strong relationships with existing clients, and generated excellent press coverage at Pitti Uomo. Our priorities for the remainder of the year are clear and action-oriented as outlined on Page 6. First, we have strengthened brand leadership to ensure disciplined execution. At the brand level, teams have been reinforced with several key appointments, including a new Deputy CEO at Wolford. At St. John, we promoted internal talent to the roles of Chief Commercial Officer and Chief Operating Officer alongside the appointment of a new Chief Merchandising Officer. These promotions not only recognize the strong capabilities within the organization but also underscore our ability to expand responsibilities from within, while positioning the brand for its next phase of growth. Second, we continue to drive efficiency by streamlining operations and optimizing our retail footprint. In the first half, we rightsized 29 underperforming stores and will continue a comprehensive review of our network while further evaluating brand image and retail productivity. Third, we remain focused on protecting free cash flow through disciplined working capital management and rigorous cost control. And finally, we are deploying targeted marketing initiatives to boost traffic in conversion with the launch of the highly anticipated collections from both Lanvin and Sergio Rossi in the second half of 2025. Expected to inject renewed growth momentum across the group. With that, I'll hand it over to David to take you through our financial and brand level performance.

Thank you, Andy. I'm David Chan, Executive President and CFO of Lanvin Group. I'll be walking you through our first half financial at group and brand level. Page 7 provides a snapshot of group's financial performance. Our revenue in the first half was EUR 133 million, down 22% year-on-year, reflecting softer market conditions and the planned creative transitions. Gross profit margin declined by 400 basis points to 54%, primarily due to the sell-through of prior season inventory. Contribution profit margin and adjusted EBITDA margin decreased by 7% and 14%, respectively as lower revenue impacted operation leverage. However, these effects were partially mitigated by cost actions. Importantly, these measures preserve flexibility and position us to capture momentum in the second half of this year. Page 8 highlights the sequential improvement we saw in the second quarter, which supports our confidence for the back half of the year. Most brands show encouraging signs of recovery in the second quarter. Lanvin and Sergio Rossi's D2C revenue grew by 46% and 16% quarter-over-quarter, respectively. Wolford's gross profit margin expanded by 1,673 basis points and Caruso saw revenue growth of 11%. These results demonstrate that our operational initiatives are gaining traction, while St. John maintained steady performance throughout the entire first half. The revenue bridge on Page 9 shows the evolution of our top line from 2021. The ongoing macro industry-wide challenges were the leading driver of the revenue decline in first half 2025. In the context of a broader luxury market slowdown and creative transition, the group has made a proactive decision to advance its strategic repositioning across geography and product assortment. Last year's logistic issues also had a residual effect on Wolford's performance, but the business is now in recovery. Looking ahead, the additions of new creative talent at Lanvin and Sergio Rossi will be the key driver for growth in the second half. Page 10 breaks down our revenue by geography and channel. From a regional perspective, all key regions saw declines with EMEA and Greater China facing the most significant headwinds, while APAC resulted -- also reflected our planned strategic repositioning. By channel, both D2C and wholesale were down. Specifically, we saw major softness in wholesale for EMEA and cautious consumer sentiment in Greater China. On Page 11, we delve into our margin performance. The 400 basis point reduction in gross profit margin was driven by several factors. Sell-through of prior season inventory with creative transition, underutilization of production capacity and product mix changes. Contribution profit was pressured by lower revenues. Though we took measures to reallocate marketing investment towards higher return initiatives, critically, all brands aggressively pushed G&A cost reduction measures to offset marketing weakness. The decline in adjusted EBITDA to negative EUR 52 million was a result of this negative operational leverage, though our cost discipline helped prevent a larger drop. Page 12 and 13 detail our successful efforts in rightsizing our operational expenses. Since first half 2023, we have made significant strides in reducing G&A expenses across the board. As you can see on Page 13, Wolford reduced brand level G&A by 27%, Sergio Rossi by 25% and St. John by 35%. This disciplined approach to managing our cost base is fundamental to navigating the current environment, improving our path to profitability. At Lanvin, G&A expenses were EUR 17 million in first half 2025, up from EUR 14 million in first half 2024, but still 15% lower than first half 2023. The year-on-year increase primarily reflects investment in creative development, specifically research and sample costs related to Peter Copping's debut collection. These are strategic investment aimed at positioning Lanvin for long-term growth. Excluding these planned spend, Lanvin's underlying cost base are -- also reflects improved efficiency. Our retail optimization strategy is nearing completion. As shown on Page 14, we are ongoingly upgrading our store network through disciplined new openings in flagship locations and rationalization of underperforming stores. In the first half, we streamlined 29 stores, creating a more focused and productive footprint. This sharper portfolio not only significantly improves the efficiency of our operations, but also positions us for stronger brand equity and sustainable value creation. Looking ahead, as I outlined -- as we outline on Page 15, our focus remains on driving cost efficiencies, marketing optimization and brand enhancement. We will continue to implement our action plan to further reduce cost and improve margins. Our approach to marketing and footprint review will be highly tactical, focusing squarely on ROI. And finally, we will build the brand story and desirability at Lanvin and Sergio Rossi with their new creative leaders which we believe will be a powerful catalyst for growth. I will now move on to the brand results for the first half of 2025. Lanvin's revenue in the first half declined by 42%, primarily due to weak wholesale demand in EMEA where clients adopted a wait-and-see approach ahead of Peter Copping's debut collection. Despite this, EMEA retail remained highly resilient. And in the second quarter, the successful launch of our marketplace model drove a 46% increase in D2C revenue and supported a notable rebound in North America e-commerce. Gross margin also improved sequentially from 52% in the first quarter to 57% in the second quarter, reflecting stronger retail dynamics and early benefits of our optimization efforts. For the half year as a whole, gross margin decreased by 366 basis points year-on-year, primarily due to product mix changes and our ongoing retail network optimization. While the revenue decline pressured contribution profit, diligent cost saving initiatives cushioned the impact and we continue to invest in Peter's vision, which is integral for -- to our long-term strategy. Looking to the second half, our initiatives are focused on a powerful launch of Peter Copping. We will execute a global integrated marketing campaign for the debut collection, amplify reach through targeted social media and e-commerce activations and drive in-store traffic with refreshed visual merchandising and clienteling events. We'll maintain cost discipline. We're reinvesting in -- savings into product innovation, flagship location and strategic digital partnerships. Moving to Wolford on Page 18. Revenue was down 23%, reflecting the residual impact from last year's third-party logistics transition. However, within this figure, is a very positive story. The wholesale channel demonstrated strong growth of 14% in the period, driven by our strategic emphasis on partnership. The D2C decrease of 35% is a result of our active rightsizing of our retail network. Gross margin for the half year decreased due to the under-absorption of fixed cost -- production cost during the recovery phase and the planned liquidation of excess stock to improve inventory health. Encouragingly, the second quarter showed strong progress, with gross margin improving from 49% in the first quarter to 65% as inventory clearance was completed and production efficiency strengthened through higher capacity utilization. Another key achievement was an 18% reduction in G&A expenses, underscoring Wolford's commitment to operational discipline. Looking ahead to second half, Wolford will celebrate its 75th anniversary with a dedicated brand push that builds on essential focus. The campaign will spotlight iconic products at the core of its branded DNA while further optimizing the assortment. We will also continue to explore expansion opportunities in emerging markets, particularly in Middle East and APAC building on momentum from the recovery. On Page 19, we look at Sergio Rossi. Revenue fell 25% as customers held off on purchases in anticipation of Paul Andrew's first collection which is set to hit the market in the second half. We were encouraged, however, by a strong quarter-over- quarter rebound in Q2. The retail sale was up 17% and e-commerce was up 10%. Gross margin decreased by 9 percentage points due to markdowns related to product mix changes and underutilization of production capacity. The second half will be the transformative period for Sergio Rossi. The focus will be on leveraging Paul Andrew's new collection to reinvigorate the brand. We plan to expand the wholesale channel by proactively seeking new partners, continue driving cost control to improve operational efficiencies and reinforce our presence in core regions while making a targeted push into the U.S. market. Turning to Page 20 for St. John. The brand demonstrated exceptional resilience with revenue remaining nearly flat in a volatile environment. Its core North American market, which accounts for 98% of revenue, grew by 4%. The wholesale channel rose 11%, reflecting successful strategic key account partnerships, notably with Nordstrom. The brand maintained a stellar gross margin of 69%. Supported by consistent full price sell-through, contribution profit margin was also steady, decreasing by only 38 basis points. For the remainder of the year, St. John will continue to refine its key channels to improve conversions and boost sales. We will stimulate the e-commerce channel with newly onboarded talent, creating more seamless product mix to enhance design and merchandising processes and optimize the supplier mix to mitigate geopolitical risk and improve cost efficiency. Finally, let's review Caruso on Page 21. Revenue declined by 11%, primarily due to a slowdown into Maison business which is undergoing a broader reset phase in the luxury market. Importantly, the proprietary Caruso brand showed continued growth in order intake. Gross profit margin remained resilient at 29%, and contribution profit saw only a slight decrease amid the market headwinds. In the second half, Caruso will support the relaunch of selection the AAA Maison lines through collaboration with their new creative directors. The brand will also focus on acquiring new wholesale accounts in expanding markets like U.S.A., Benelux and DACH, and will continue to optimize its cost structure to improve operational efficiency. At this point, I'd like to have Andy provide some final remarks.

Great. Thank you, David. The first half of 2025 continued to present significant headwinds for the global luxury sector. Despite these persistent challenges, our focus remains unwavering. We maintained strict cost discipline, advanced our strategic creative transitions and laid the groundwork for future growth. While top line results reflect the difficult market environment, we are encouraged by the clear signs of recovery we saw in the second quarter across several of our brands. Our brands are taking decisive actions tailored to their unique market positions, and we're confident in their plans for the second half and going forward. Thank you again for your time and support, we will now open the line for questions. We will now begin the question-and-answer session.

[Operator Instructions] There appear to be no questions at this time, and this concludes our question-and-answer session, which also concludes the conference call. Thank you for attending today's presentation. You may now disconnect.

Thank you for joining us and welcome to the Lanvin Group's Fiscal Year 2024 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be opportunity to ask questions. Please note this event is being recorded. Now, please take a moment to review the disclaimers. During this presentation the company will be making certain forward statements including but not limited to future performance and industry outlook. Forward-looking statements are inherently subject to risks uncertainties and other factors and they are not guarantees of performance. For today's presentation I would like to introduce David Chan, Executive President and CFO of Lanvin Group; and Andy Lew, Executive President of Lanvin Group. I will now turn it over to David to start the presentation.

Thank you, and welcome to all -- welcome to all the participants. I'm David Chan, Executive President and CFO of Lanvin Group. Today, we'll take you through a comprehensive view of Lanvin Group's performance in 2024. The strategic actions we have taken to navigate a challenging environment and our road map for 2025 and beyond. The key topic today is to share how we overcame these hurdles and lay the groundwork for sustainable growth. 2024 was a year defined by macroeconomic turbulence, shifting consumer behaviors and industry-wide softness. Yet within these challenges, we achieved critical milestones that position us for recovery. For fiscal year 2024, our global revenue was €329 million, a 23% decrease from fiscal year 2023. This decline reflects broader industry trends, particularly in EMEA and Greater China, where macroeconomic pressures weighted heavily. Nevertheless, we took proactive measures to reduce G&A expenses and improved working capital management. We also consolidated our store network to optimize our retail footprint and concentrate on our core business units. These efforts, along with the appointment of Andy Lew as Executive President, whose expertise and brand transformation are expected to drive strategy implementation and bring transformative initiatives to our group. Andy's leadership, combined with new creative appointments Lanvin, Sergio Rossi signals a new era of innovation and growth. Let's take a deeper look at our 2024 results. Despite a 23% decline in revenue with effective cost control inventory management, we managed to maintain a stable gross margin of 56% compared with a gross margin of 59% last year. While contribution profit and adjusted EBITDA faced challenges, we are encouraged by progress in operation efficiency. G&A expenses were reduced by 15% year-over-year, a testament to our streamlined cost structure. We have also reduced directly operated stores, focusing on core and high potential markets such as EMEA for Lanvin and Sergio Rossi and North America forcing St. John. We've made significant strides in cash management with a 32% improvement in operating cash flow from 2020 to 2024, driven by reduced inventory days and tighter receivable management. These results demonstrate our dedication to operational excellence and financial discipline. Since 2020, Lanvin Group had delivered 10% CAGR underscoring the resilience of our diversified portfolio, our brands: Lanvin, Wolford, Sergio Rossi, St. John Knits and Caruso, each contributed to the Group's performance, leveraging their distinctive strength and strategies to grow our global footprint. Let's turn our attention to Slide 7, which highlights the revitalization efforts across our brand portfolio. During the past years, we have made significant strides in aligning them for sustainable growth, starting with Caruso. Our luxury tailoring powerhouse in St. John, the iconic American luxury brand both shows strong improvements. Caruso's contribution profit increased to €8.8 million in 2024, up from €3.2 million in 2022, a reflection of our success in refined distribution strategy and growing demand for Caruso’s playful elegance in bespoke tailoring. Similarly, St. John's contribution profit grew from a loss in 2020 to €8 million in 2024. Thanks to strategic investments in brand repositioning and digital infrastructure. We're confident that these steps will further amplify margins in the coming years. Lanvin, our crown jewel, saw revenue increase to €82.7 million in 2024 more than doubling from €35 million in 2020. This growth was driven by continued investment in increasing the brands like desirability and reinvigorating is puritan heritage, while appealing to a new generation of luxury consumers. Wolford, Austrian legware and ready-to-wear innovator also may strides. We adjusted the product mix to position Wolford as a full lifestyle brand expanding beyond legwear to cater to the growing demand for versatile high-end essentials. Finally, Sergio Rossi launched a global retail expansion since 2022, shifting from heavy reliance on wholesale and to enhance margin control and brand equity. While the top line is facing challenges, our foundational improvements set the stage for development. These achievements underscore our ability to focus on long-term strategic priorities, while undergoing short-term challenges. Let's now turn to Slide 8, which outlines our journey towards profitability. Over the past year, global headwinds including inflationary pressures and shifting consumer behaviors impacted our top line performance. However, we have repositioned – responded decisively by sharpening our focus on operational efficiency and cost discipline. There are three key pillars of our turnaround plans, which includes: first, gross profit resilience. Despite revenue declines, we maintained strong gross margin reflecting disciplined pricing and reduced promotional activity. Second, OpEx streamlining. We continued to reduce operating expenses since 2022, a testament to our commitment to lean operations. Last but not least is breakeven optimization. With narrow our break point through rigorous cost management ensuring our position to capitalize on revenue recovery. In 2022, our OpEx, which includes marketing, selling and G&A expenses stood at €378 million. By 2024, we reduced this to €326 million, a 14% cumulative savings over two years. Equally important is our improved cash management. Net cash used in operating activities improved by 27% since 2022, decreasing from negative €81 million to negative €59 million. This was achieved through tighter working capital controls including reduced reducing inventory days through minimizing excess stock and accelerating receivable collection. In 2024, we welcome new creative leadership with appointment of Peter Copping, as artistic Director of Lanvin; and Paul Andrew as Creative Director of Sergio Rossi. The vision and creativity are already making significant impact on our brands as seen in the positive reception of Lanvin's debut show under Peter Copping in January. I will now hand over to Andy who will provide insight into our chief in Jan [ph] 2024 and strategic priorities in Jan [ph] 2025.

Thank you, David. I'm Andy Lew and I'm honored to swerve as Executive President of Lanvin Group and I'm thrilled to share our brand level achievements in 2024. Starting with our iconic flagship brand in Lanvin. As mentioned by David in June 2024, we announced Peter Copping as Artistic Director, marking a pivotal moment for the brand. Peter's fresh creative vision has already reinvigorated Lanvin's DNA, timeless elegance with contemporary artistry. Lanvin has also launched the Character Study series a bold initiative that bridges [indiscernible] and modern culture. This was further amplified by our collaboration with choreographer Benjamin Millepied who's worked on a dynamic performative edge to our campaigns. Financially, Lanvin demonstrated remarkable resilience. Despite market pressures, we maintained a stable gross profit margin through disciplined cost control and inventory optimization. The highlight was Peter Copping debut fashion show in Paris, a triumph return to elegant garnered global claim and set the stage for our fall 2025 collection. Now, let's shift our focus to Wolford. Wolford is crafting compelling brand campaigns and product names that not only highlight its unique value proposition, but also elevate its positioning within the luxury market. Those marketing campaigns highlighted Wolford's unique value proposition collaborating like the Etro X Wolford capsule collection, emerging Italian flare with Austrian precision, not only expanded our audience but also move cultural relevance. Lastly, Wolford is enhancing the brand experience through a refreshed web shop identity and optimize retail and wholesale distribution, ensuring a cohesive and premium brand presence across all touch points. Turning to Sergio Rossi. In July, Sergio Rossi appointed Paul Andrew as Creative Director, a visionary move to redefine Italian footwear. Paul's fall 2025 collection set the view in Milan planned architecture bonus and timeless craftsmanship. Sergio Rossi its retail network focusing on key markets like EMEA and Japan. Efficiency continued to be a priority for Sergio Rossi with factor restructuring measure aimed at improving production lead-time and productivity, all while reducing costs. Additionally, Sergio Rossi has expanded its wholesale development by opening franchise stores in the Middle East and Taiwan through local partnerships, expanding its global footprint. St. John's 2024 strategy is centered on focus on jointly. We streamlined operations to prior North America, upgrading flagship stores in Beverly Hills and New York. These spaces now showcase our unique collection which marries classic knits with tech fabrics and a modern edge. Our new whole session model developed with our partnership with Nordstrom, improved margin control and brand consistency. Digitally, the revamped e-commerce performance already showing improvements in conversions. Lastly, the shift to an asset-light model including the sale of noncore products enhance our operational flexibility. Finally, Caruso amplifies resilience despite challenging luxury landscape. Not only did Caruso achieved its revenue growth in its proprietary brand business, market improvement was a standout. Positive net profit and robust cash flow underscore success of Caruso's strategy. Branded deal is growing for Caruso, thanks to high standard yet efficient content creation. Credible collaborations and trade events that resonate with your customers. Effective prototype and fashion show pieces management have also played a crucial role in this success. Proceeding to page 22, I am pleased to present our strategic priorities for 2025;initiatives to drive growth, agility and profitability across the portfolio. First and foremost, leadership and organizational excellence. We're building a dynamic leadership team, combining industry veterans with fresh perspectives to foster innovation and rapid decision making. Our new European headquarters based in Milan will enhance regional oversight, streamline operation and attraction relationships with key stakeholders. Second, creative momentum. Appointment of Peter Copping and Paul Andrew mark a new era of artistic vision. Their collections will reinvigorate brand relevance, supported by 360-degree marketing campaigns from runway shows to social media activations. Third, operational efficiency remains the cornerstone. We’ll continue optimizing store networks, prioritizing high-traffic locations and defining inventory management and pricing strategies to improve cash conversion cycles and reduce working capital. Fourth, market expansion. We're committed to key cities, while tapping into high-growth luxury markets. In the Middle East, new franchise stores as an example Sergio Rossi and Dubai Mall and partnerships are key initiatives for us. Additionally we'll also continue to explore emerging categories to diversified revenue streams. At Lanvin Group, we view challenges of catalysts for transformation, put the refreshed leadership team strategic market focus and unwavering commitment to craftsmanship, we're confident in our ability to deliver sustainable growth and restore profitability in 2025 and beyond. With that, I'd like to turn it back to David to go through some of the consolidated and brand level results in 2024.

Thank you, Andy. The year 2024 was marked by significant macroeconomic challenges yet two brands within Lanvin Group portfolio demonstrated notable resilience. St. John Caruso stood out in the midst, broader declines, leveraging strategic regional focus and operational agility. St. John's emphasis on North America coupled with its premium positioning and successful partnership with Nordstrom help stabilize performance. Similarly Caruso though facing a mild revenue drop achieved double-digit growth in its own brand business, driven by strong demand for its playful yet elegant collections and made a measure offerings. These assess partially offset pressure seen in other brands. Lanvin grabbling with creative transitions and softer luxury demand saw a revenue decline, while Sergio Rossi impacted by EMEA wholesale softness and reduced third-party production. Wolford is also negatively influenced by logistics integration, starting from Q2 2024. To put this into perspective. In terms of group level adjusted EBITDA in 2024, we estimate that the integration of Wolford Logistics had an impact ranging from €14 million to €18 million. And the creative transition impact of between €5 million to €10 million. Shipping out these transitional costs, our 2024 adjusted EBITDA is estimated at negative $64 million to negative €73 million, a range consists with our 2023 results. This stability is notable given the significant slower demand environment in 2024, underscoring our ability to maintain operational discipline amid external pressures. I will now provide with more details on 2024 financial results for each brand. 2024, as we mentioned, was a transitional year for Lanvin. Revenue declined 26% to €83 million, reflecting softer luxury demand and creative leadership gaps. While wholesale faced pressure, retail network optimizations and D2C resilience mitigated the decline. In the same time, Lanvin stabilized margins through disciplined actions. Gross margin improved to 59%, supported by pricing discipline in inventory management. G&A expenses were reduced by 14%, underscoring operational efficiencies. The appointment of Peter Copping as Artistic Director marked a turning point. His acclaimed January 2025 Fashion Show has already reignited industry interests with new collections set to launch in second half of 2025. We are confident that Peter's creative vision and targeted investment will drive momentum in 2025. Moving on to Wolford. Wolford navigated significant challenges in 2024 with revenue declining 30% to €88 million, macroeconomic volatilities, logistic disruption and wholesale softness in EMEA weighted on results. Looking ahead, Wolford's 75th anniversary in 2025 will be a catalyst. We are streamlining product launches, stabilizing operation and leveraging digital channels to reconnect with loyal customers. Wolford also has established a new management board to aim at sustainable future growth for the company. Now I'd like to discuss Sergio Rossi. Sergio Rossi faced headwinds in 2024 with revenue down 30% to €42 million. EMEA market declined 35%, mainly due to wholesale conditions and planned reduction of lower-margin third-party production. Greater China market declined 35% due to the challenging retail market. Japan market showed a slight decrease of 8%. Key actions included administrative expenses reduced by 18% through cost control and appointment of Paul Andrew as Creative Director whose first collection aims to be vitalized wholesale ownership in 2025. While gross margin fell to 43%, wholesale channel enhancement and targeted regional partnership will stabilized margins. Sergio Rossi's focus on operational efficiencies and fresh designs in 2025 will be critical to recover. Moving to St. John. St. John's demonstrated resilience in 2024, while revenue declined 12% to €79 million strategic focus yielded quicker wins. Gross margin surged 6 percentage points to 69% from 63% driven by full price sell-through and a successful partnership with Nordstrom. North America outperformed, contributing 94% of revenue, while international markets were streamlined to reduce complexity. In 2025, St. John will deepen its North American focus, emphasizing its Southern California heritage through storytelling and knitwear leadership. Enhanced digital capability is targeted to further amplify customer engagement. Finally, I'd like to discuss Caruso's results. Caruso navigated a tough luxury landscape with agility. Revenue decreased 7% to €37 million. The Caruso brand business grew double digits, fueled by the strong demand for its playful elegant collection and made-to-measure offerings. Gross margin held steady at 29% with contribution profit margin stabilized at 24%. In 2025, Caruso will expand distribution and amplify marketing efforts. Caruso's craftsmanship and service excellence position it to outperform even in a challenging market. At this point, I'd like to have Andy provide some final remarks.

Thank you, David, for the review. In closing, I want to emphasize that Lanvin Group's strength lies in our diverse brand portfolio and deep connections with loyal customers. Each brand, Lanvin, Wolford, Sergio Rossi, St. John and Caruso, brings unique heritage and craftsmanship, the foundation of an enduring luxury appeal. 2024 tested our resilience but has also sharpened our strategy. While challenges persist, Lanvin Group is emerging leaner, more focused and better positioned to capitalize on luxury's long-term fundamentals. As we enter 2025, we do so with optimism. Peter Copping's new collection, Wolford's anniversary campaign and Paul Andrew's vision for Sergio Rossi are just the beginning. With a revitalized team, we're poised to turn this pivotal moment into a decade of growth. Thank you for your time today. Now I'll hand it back for questions.

Thank you for joining us, and welcome to the Lanvin Group's 2024 First Half Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. Now please take a moment to review the disclaimers. During this presentation, the company will be making certain forward-looking statements, including, but not limited to future performance and the industry outlook. Forward-looking statements are inherently subject to risks, uncertainties and other factors, and they are not guarantees of performance. For today's presentation, I would like to introduce Eric Chan, CEO of Lanvin Group; and David Chan, Executive President and CFO of Lanvin Group. With that, I'd like to turn it over to Mr. Eric Chan to start the presentation.

Thank you. Thank you all for joining us today. I'm Eric Chan, the CEO of Lanvin Group. This year, just late last year, we remain committed to growing our brand by driving awareness and hit through our products. We will continue investing in developing our brands and their products and as such, I would like to welcome the new creative leaders who have joined our family, Peter Copping and Lanvin, and Paul Andrew and Sergio Rossi, both of whom are world class creative icons and bring tremendous energy and excitement to our Group. I would also like to take a moment to welcome Regis Rimbert, the new CEO of Wolford. He joined us in June 2024 and he brings us a wealth of experience in luxury, fashion and operations and I am excited for the path he will create for the brand. The story of the first half was the macroeconomic headwinds. Our entire industry faced, ongoing political instability as well as bearish economy signals were impactful in the first half of 2024. Just as they have started to be in the second half of 2023, additionally, the wholesale channel continues to be challenged globally and the challenges was further compounded by the macroeconomy headwinds. Lanvin Group and our brands will not immune to the top line challenges that prevailing market conditions present in the first half. However, while the story of the market was about macroeconomy headwinds, Lanvin Group story had not changed. We continue to focus to our product portfolio and generating brand heat and we continue to tactically expand our footprint in new markets while putting it trimming underperforming locations. We not only continue to improve our cost structure, but also took a proactive approach by implementing more aggressive, cost efficient initiatives to combat the macroeconomy headwinds. We continue to make progress on our path to profitability. We have improved our food price sell through, as well as inventory management to sustain our growth profit margin during a challenging environment. Additionally, we have remained focused on synergizing our fixed overhead to right-size our platform for the future. With that said, our Group revenue in the first half of 2024 was €171 million, representing a decrease of 20%. Our gross profit margin for the year remains steady down just 1% with gross profit totally €38 million. We continue to refine our operations and we plan to use this time to market ambiguity to further hone our cost structure. At the same time, we plan to invest in marketing and product development to set our path for tomorrow not only financially but creatively with the addition of the new talents who will help drive our Group forward. With that, I would like to turn it over to our Executive President and CFO, David Chan to go through some of the details.

All right, thank you. Thank you, Eric. Thank you for joining us today. I'm David Chan, Executive President and CFO of Lanvin Group. I'll be walking you through some of our brand's highlights to start. I'd like to direct everybody to Page 5 of the presentation. The highly anticipated announcement of the new Artistic Director, as Eric mentioned for Lanvin, was made in June of this year. Peter Copping, who will be joining Lanvin in September, brings a fresh view of couture and will help write the next chapter of a story history of the brand. Additionally, in the first half, the second edition of Lanvin Lab was released with a sculpture collaboration with world renowned modern artist Erwin Wuhr. The piece was designed incorporating a Pencil Cat Back as well as the iconic Cash sneaker. The monumental piece will tour five key cities in China throughout the summer. Moving on to Wolford, the brand opened its first location in the Middle East in Kuwait City. The brand has big plans for the region as it continues to expand its leisure and bodywear collections and will continue to pursue opportunities in emerging markets. Additionally, in the Middle East, Sergio Rossi opened its first store in Dubai Mall and plans another store to be opened in 2025 in Abu Dhabi. This is a testament to the growth opportunities of our brands see in the region and the resilience of the region in another challenge global market for luxury. Another significant piece of news for Sergio Rossi was announcement in July of the new Creative Director, Paul Andrew. Paul brings a unique view as a successful founder of his own footwear brand to the Italian [indiscernible] of Sergio Rossi. His innovative styles will bring a lot of excitement and the heat to the brand. Now moving to St. John. The brand held a number of successful marketing events in the first half of the year leading up to and after the launch of its new New York flagship store, the brand highly successful campaigns 2024 dovetailed a fantastic year of generating brand heat in 2023. The brand continues to grow its presence in new demographics and its performance has been elevated by new and younger clientele. Lastly, I would like to talk about Caruso. The brand saw a strong first half with its own Caruso brand and product lines. In the first half the brand also continued to implement new business development initiatives to build its Maisons business and also continue its profitability trend. Next, I'd like to point you to Page 6 to discuss our plans for the second half. Given the market headwinds for the foreseeable near term, all our brands will focus on cost efficiency initiatives to continue to drive margin improvements. To support our initiatives in the first half, we brought a new manager to facilitate operating cost efficiency measures. In the second half, we'll be adding new team members to our branch to affect changes and further adapt to market conditions. The Group will further invest in marketing for four brands. Lanvin, and Sergio Rossi in particular will focus on planning the highly anticipated first collections for Peter Copping and Paul Andrew, which will come in 2025. Despite the conditions of the wholesale market, the additions of Peter and Paul provide foundation for wholesale buyers and give creative direction and confidence to our upcoming collections. In the second half, the Group and our brands will work on further synergizing the cost base as well as aggressively culling the retail network. The plan to improve the ROI and marketing expansion initiatives with an eye towards new collections from Lanvin and Sergio Rossi. Now moving to Page 7, I'd like to highlight some of the Group's level initiatives we are undertaking in 2024 to support our brand. The Group has been working on a number of initiatives with strategic partners to develop product category expansion, as well as support our brand's global logistics. We are currently in development of a framework so that all our brands can be benefited from Group level service platforms. Similarly, we have been in discussion with a number of partners in the Middle East regions to support our brand's expansion in that region. The strength of the market in the Middle East and the strong brand awareness that our Group carries in the region provide great opportunity for expansion. Lastly, we continue to find opportunity to synergize back office function to reduce overhead and improve efficiency. Overall, the theme of the second half is setting out brands up to have a successful future in 2025 and beyond. And now going to the financial fundamentals. Please turn to Page 9 for a review of our revenue performance. The Group's first half revenue was impacted by the global softness in luxury, which was further compounded by the continued challenge in the wholesale market. For Wolford and Serge Rossi, however, two non-recurring impacts to top line in the first half also added to decline in sales. For Wolford integration issues with its new third party logistics provider caused shipment delays for extended period of time during the first half and for Sergio Rossi, planned reduction of third party production contributed to decrease in revenue. Moving to Page 10 on a regional basis, EMEA and Greater China saw the largest decreases in revenue at 27% and 24% respectively, while North America saw a more modest 11% decline. By channel, D2C revenue decreased by 14% and wholesale revenue, which continues to be challenging - challenged due to a global slowdown in the wholesale environment, was down 30%. From a margin standpoint on Page 11, gross profit margin held steady at just a 1% decline. The top line decrease was mitigated by better full price sell through and improved channel mix. Our effort to improve and promote better quality and higher margin revenue continued to yield fruit. Contribution profits were down due to the continued investment in marketing, as well as reduced absorption of retail overhead from lower revenue. Reacting to a softer market in the first half, our brand took measures to selectively invest in ROI maximizing marketing campaigns. Additionally, our brands made tactical expansions, particularly in the Middle East, of its retail footprint while further culling underperforming locations. The Group also took proactive measure to synergize G&A and the brand also contributed to reducing fixed overhead as you can see on Page 12 and 13. This helped minimize the revenue impacts with adjusted EBITDA going down only €1 million to €42 million loss for the period, a 3% decrease period-over-period. Turning to Page 14, as I mentioned, we continue to aggressively call our store network while opening stores in ROI maximizing locations. In the first half, we launched our first Wolford and Sergio Rossi stores in the Middle East and relocated our flagship New York City, St. John's store to a prime location on Madison Avenue. We reduced our overall fleet by about 21 stores and added open or relocated eight retail locations in the first half. For the rest of the year, we plan to implement additional initiatives to reduce costs and improve margins while continuing our tactical approach towards marketing and footprint and expansion with a focus on maximizing ROI. And with the additions of Peter Copping and Paul Andrew for Lanvin and Sergio Rossi, in particular, we will help build the brand's stories for the next chapter with our new creative leaders. Overall, we plan to build our future and gain momentum to maximize our opportunities as the luxury market improves. Moving to brand level performance I'd like to start with Lanvin on Page 17. Lanvin continued to manage through soft first half market conditions without an artistic director. This top line impact was further compounded by a contracting wholesale network. Overall, the revenue decreased by 15% to €48 million. The market impacts were felt in all regions but our efforts to further penetrate opportunity zones in APAC were successful with the region excluding Greater China seeing growth of 9%. From a channel perspective, D2C decreased 10% and as I mentioned the biggest contributor to the decline was wholesale which was down 23%. With the addition of Peter Copping, we believe the wholesale channel despite its general struggles will be revitalized for Lanvin moving forward, so we see a big opportunity. While revenue was down, I'm pleased to report the brand's gross profit margin increased from 56% to 58% from higher full price sell-through and strategic inventory management. The improving results are a testament to the efforts the brands have made to improve design, planning and material sources. Contribution profit remained at a loss of €9 million mainly stemming from the brand's continued commitment to strategically investing in marketing. However, below the contribution profit line, the brand improved its G&A by 29% and maintained its efforts to drive profitability. For the second half, the brand plans to drive retail foot flow and online traffic as well as increase conversion and transaction value. Additionally, the house plan to further optimize expenses through operational cost efficiencies to improve D2C profitability in preparation for expansion into new geographies. The brand will reinforce its leather goods accessory programs, expand its seasonal carryover items across product categories while activating recruiting new clientele and capture market share. With additional Peter Copping, the brand will also introduce new product styles to capitalize on momentum of its arrival in Q3 in 2024. Moving to Wolford on Page 18, Wolford had a unique situation in the first half which was significant revenue impact driver. Integration issues with this new 3PL resulted in delay shipments spending months and led to out of stock situations. The situation interrupted was otherwise a very successful global launch of the brand's W.O.W leggings which show exceptional sell through. The logistic issue has been resolved and the brand expects to recover in the second half. Gross profit margin decreased to 63% mainly due to the under absorption of fixed production costs due to lower revenue, as well as the planned liquidation of excess stock to improve the quality of its inventory. Contribution profit fell to a loss of €8 million for the period. Wolford's product evolution and increased breadth has set it up for recurring success. Already, the key leg wear products account for 38% of revenue and ready-to-wear and lingerie 46% and 15% respectively. These new product categories have revamped the brand, its margin profile. However, we understand that the situation at Wolford requires different approach to cost structure. As such, we are now joining Regis as the new CEO of Wolford in June 2024. Regis brings a wealth of luxury brand operating experience. He was spearhead efforts of strengthen the workforce and key support function with stronger leadership, as well as implement sustainable cost model for transforming supply chain distribution. For the second half, the brand plans to aggressively improve its cost structure, as well as store economics. But we'll also explore opportunities for expansion. Wolford opened its first store in Middle East in Kuwait City, and believes the region is ripe for expansion. With Regis expertise in international development, the brand would take a selective approach to capitalize on expansion opportunities. Moving on to Page 19, Sergio Rossi saw revenue decline, by 38% in the first half. The main driver was a decrease in wholesale revenue, which was down 60% overall, and it was impacted by twofold by a general stagnation of wholesale market, as well as a planned reduction of third-party production. The initiative to reduce third-party production stemmed from efforts to improve the overall white label offering, and rebuild it in higher margin accounts. As such, while revenue was down, gross profit margin saw a much more modest decline 2%. Contribution profit remains positive, landing at just under €1 million. For the second half, the brand will continue to improve the quality of its revenue, and further drive cost reduction, through operating efficiencies in manufacturing and supply chain. Additionally, Sergio Rossi plans to right-size its overhead at retail network to benefit current market conditions. On the product side, the brand is extremely excited by the joining of Paul Andrew. Sergio Rossi will spend much of its second half supporting Paul, as he helps to write the next chapter of the brand. Additional multimedia campaigns will be launched with a universal theme celebrating Sergio Rossi's heritage and self-affair, to support current collections as well as help prepare for Paul's first collection launching in 2025. Next, I'd like to discuss St. John. Please turn to Page 20. With less exposure global markets saw a decrease in revenue of 14%, North America, by far its largest market, saw a more moderate decrease of 10%. This decline was seen relatively even across all channels. St. John, being a few steps farther away our other brands, on other - our strategic paths of operating efficiency showed a significant improvement in - gross margin going from 62% to 69%. The strategy that have been implemented in 2023 have proven successful, resulting in higher full-price sell-through and better gross margin from improving channel mix. Contribution profit margin was also up from 11% to nearly 12%. The brand's efforts to revamp its product, and image have paid off. The story of its first half of St. John was a highly successful campaign advance that will help as well as the launch of its new flagship location in New York City. The brand refresh and effective marketing campaign, have attracted a whole new younger demographic to the brand, and can be seen by the - marked increase in social media followers. For the second half, St. John will continue to stoke its brand heat, while driving its basic product lines. Additionally, the brand will optimistically hone its cost structure, by right-sizing its retail network and overhead. Lastly, moving on to Caruso. Please turn to Page 21. Caruso had an impressive first half. Despite macroeconomic challenges, the brand held the ship steady with only a slight decline in revenue, which was down only 1%. The brand saw a reinvigoration of its episode Caruso product line, which grew by 21% with a robust performance at both ready-to-wear and made-to-manage service. The Maisons business faced a lift, a bit of slowdown due to current global condition impacting its client. Gross profit margin increased from 26% to 29%, from improved in-house product production efficiency and reduction of outsourcing. Contribution profit margin also increased from 22% to 24%. For the second half, Caruso plans to revitalize its Maisons business with additional business development initiatives. Additionally, it will implement new employee initiatives including the 360 organizational review and ESG action - plan, to enhance team member loyalty, participation and growth. At this point, I'd like to have Eric provide some final remarks.

Thank you, David. To close our results call, I would like to highlight some key takeaways. First, we faced a challenging first half of 2024, both externally and internally. However, we remain resolved in our mission to grow our brand, and to grow our profitability. Our proactive approach mitigates some of the impact, but we plan to drive continued improvement in the second half. Second, we welcome some exceptional leaders into our family, both on the creative and the business side. And I'm extremely excited about our future. Thirdly, while I anticipate continued softness in the luxury through the second half, we will be positioning our brands to capitalize on improving market condition, by continuing to strategically invest in marketing and positive development. And the fourth, our approach to our retail network will continue to be tactical. We have located a number of opportunity zones for each of our brands, and we look to expand our footprint aggressively, but judiciously. I would like to conclude by saying that Lanvin Group, is committed to its brands and our strategy, to improve our top line and profitability. On behalf of the new entire management team, thank you for listening to the presentation.

[Operator Instructions] The first question today comes from Tracy Kogan with Citi. Please go ahead.

Thanks, guys. I was wondering if you could talk about, how business trended through the quarter, if there was any difference in performance - I mean through the half, if there was any difference in performance as the period went on. If you ended on the lows or the highs, just any comments you could make on trends by month? Thanks.

Oh, thank you, Tracy, for the question. Good to hear from you. Yes, I think I can provide some general remark. I think we obviously, as we mentioned in April, our - the pressure point started in the second half of last year, we saw a little bit of uptake in the, I would say, the first quarter. But I think we do see a pretty clear path in terms of kind of pressure in the second quarter. It started probably sometime in end of April, kind of early May, that time period.

And was that pretty consistent by region which, was there one region? It seemed like the North America held up - better overall. But just wondering by region, if there was any difference in performance by month?

Hi, this is Eric. In fact, it's pretty consistent across most of the regions, I mean, from the Asia Pacific to the EMEA - to the American market. We think actually the macroeconomy headwinds actually hit all the regions, I would say, except some very particular markets we may see, because of particular reasons. I mean, that's less hit, for example like Japan, because of the currency or the Middle East, which is an up-and-coming markets. Other than that, basically, it's pretty consistent.

Great. Thank you, guys.

You're welcome.

[Operator Instructions] There appear to be no further questions at this time. And this concludes our question-and-answer session, which also concludes the conference call. Thank you for attending today's presentation. You may now disconnect.