The following is a summary of the Lanvin Group Holdings Limited (LANV) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Lanvin Group reported a revenue of €426 million in 2023, marking a 1% growth from 2022, and a three-year compound annual growth of 24%.

• Gross profit increased to €251 million, improving the margin to 59% from 56% in 2022.

• The APAC region and e-commerce showed growth of 8% and 3% respectively. The US digital platform has been a key player in this aspect.

• Profit margins showed an overall improvement with gross profit margin by over 250 basis points, contribution profit margin by 255 basis points, and adjusted EBITDA margin near 200 basis points.

• Lanvin brand saw a decrease of 7% in revenue due to industry-wide difficulties, but gross profit improved to 58%.

• Wolford improved profitability by more than €10 million compared to 2022 and Sergio Rossi's DTC growth grew especially in the APAC region.

• St. John saw 5% growth in 2023, with Direct-to-consumer (DTC) revenue improved by 7% and e-commerce growth of 14%.

• Caruso demonstrated significant growth and margin improvement, through strategic restructuring efforts, achieved breakeven adjusted EBITDA in Q1 2023.

Business Progress:

• Lanvin Group successfully launched its US digital platform and made considerable progress in enhancing the delivery vehicle and improving retail footprint.

• Brands such as Wolford and Caruso have made significant progress regarding product development, strategic alignment, and market expansion.

• The group is adopting a strategy focused on rationalization with plans to introduce more of Wolford's leisure wear and leggings due to their success.

• The orientation towards accessories and leather goods sectors is gaining momentum with plans to improve gross profit margin, inventory turns, and merchandising strategy.

• The company has revised its goal, aiming for cash breakeven at a group level by 2025 due to unforeseen macroeconomic headwinds.

• Future focus areas include balancing regional growth both in retail and online, expanding market share, and accelerating footprint growth with Lanvin Lab as a key growth driver.

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