LANV

• Transformation Progress: The first half of 2026 focused on executing a transformation agenda, resulting in a leaner, more efficient operating model. Profitability margins improved significantly despite revenue declines.
• Profitability Improvements:
  • Gross margin increased from 57.7% to 59%.
  • Contribution profit margin improved from -16.6% to -8.9%.
  • Adjusted EBITDA margin improved from -45% to -34%.
• Cost Discipline: Significant reductions in G&A costs across the portfolio since H1 2023: Lanvin (-30%), Wolford (-50%), Sergio Rossi (-45%), and Saint John (-43%). This reflects organizational simplification and tighter spending discipline.
• Retail Footprint Rationalization: Directly operated stores were reduced from 174 at end-2025 to 151 at end-June 2026. The focus is on removing underperforming locations while selectively pursuing strategic openings.
• Digital Growth: E-commerce returned to growth across the group. Specific highlights include Saint John (+31%) and Wolford (+22%).
• Brand-Specific Developments:
  • Lanvin: Strong market response to FW26 Paris runway; celebrated 100th anniversary of menswear.
  • Wolford: Stabilizing business with new CFO Marco Pozzo; strengthening supply chain and ESG initiatives.
  • Sergio Rossi: Repositioning towards an asset-light model; streamlined supplier base.
  • Saint John: Resilient underlying business; developing new channel opportunities like concessions.

• H2 Priorities: Continue executing the reset and transformation agenda, focusing on optimizing retail footprint and operational efficiency.
• Growth Focus: Move beyond optimization to actively pursue growth opportunities in different markets, channels, and product categories.
• Partnerships: Leverage partnerships and collaborations to extend brand reach, access new customers, and develop revenue opportunities, including asset-light models.
• Financial Discipline: Maintain strict discipline on costs, working capital, and cash flow while selectively investing in high-return areas.
• Portfolio Optimization: Continue to optimize the brand portfolio to ensure resources are focused on brands with strong long-term potential.
• Outlook: Management believes the combination of a leaner operating model and stronger brand leadership provides a solid platform for sustainable growth, though no specific numerical revenue or profit targets for H2 2026 were provided.

The transcript provides fragmented and internally inconsistent revenue figures for individual segments due to speaker disconnections and corrections. However, the following performance metrics are noted:

• Group Total: Revenue was €101 million (reported as down 13% YoY in some sections, though later corrected to €101 billion in a specific brand segment context, creating ambiguity; the group-level figure is stated as €101 million). Contribution profit improved by ~€10 million, and Adjusted EBITDA improved by ~€17 million.
• Lanvin: Reported revenue of €22.9 billion (noted as down 17.9% in one instance, but context suggests this may be a transcription error for millions given the group total). Gross margin expanded by 390 basis points to 58.2%. Contribution loss narrowed from €12.3 million to €6.2 million. Like-for-like boutique sales remained positive despite closures.
• Wolford: Revenue was €31 million (down 6% YoY). DTC declined only 2%, while e-commerce grew 22%. Wholesale was down 12% due to timing comparables, but partner sell-through was encouraging. Gross margin recovered to approximately 60%.
• Saint John: Revenue was €35.5 million (down 10.5% YoY, or ~5% on USD basis). E-commerce grew 31% in reporting currency. Gross margin increased to 69%, and contribution margin improved to 12.3%.
• Sergio Rossi: Revenue was €10.9 million (down 28.6% YoY). Wholesale excluding third-party production grew 21%. Third-party production revenue decreased by $1.9 million. Gross margin was pressured by channel mix shifts and clearance activity.

• Market Environment: Operating in a still very challenging luxury market environment which continues to pressure top-line revenue.
• Revenue Decline: Deliberate actions to reshape the portfolio and distribution footprint have led to significant revenue declines (e.g., Sergio Rossi down 28.6%), which may impact short-term financials.
• Execution Risk: The success of the transformation depends on effectively converting the leaner foundation into renewed growth without compromising critical brand capabilities.
• Supply Chain Transition: Ongoing supply chain transitions, particularly at Sergio Rossi, have temporarily pressured gross margins.

No questions were asked during the session. The operator announced that there appeared to be no questions in the queue, concluding the Q&A portion immediately after the prepared remarks.