Loading...
01/11 19:52
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects significant challenges: a 22% revenue decline, gross margin drop, and negative EBITDA. Despite some positive D2C and specific brand performance, the overall financial health is concerning. The Q&A section lacks clarity in management responses, further weakening sentiment. Given the macroeconomic uncertainties and sector-specific challenges, the stock is likely to experience a strong negative reaction.
Revenue 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 Decreased by 7% year-on-year, impacted by lower revenue and operational leverage, though partially mitigated by cost actions.
Adjusted EBITDA Margin Decreased by 14% year-on-year, due to negative operational leverage, though cost discipline helped prevent a larger drop.
Lanvin D2C Revenue Grew by 46% quarter-over-quarter in Q2, driven by the successful launch of the marketplace model and a rebound in North America e-commerce.
Wolford Gross Profit Margin Expanded by 1,673 basis points in Q2, reflecting improved production efficiency and completion of inventory clearance.
Caruso Revenue Grew by 11% in Q2, showing signs of recovery despite broader market challenges.
Lanvin Revenue Declined by 42% year-on-year, primarily due to weak wholesale demand in EMEA and anticipation of Peter Copping's debut collection.
Wolford Revenue Down 23% year-on-year, reflecting the residual impact from last year's third-party logistics transition.
Sergio Rossi Revenue Fell 25% year-on-year, as customers awaited Paul Andrew's first collection.
St. John Revenue Remained nearly flat year-on-year, with its core North American market growing by 4% and wholesale channel rising 11%.
Caruso Revenue Declined by 11% year-on-year, primarily due to a slowdown in the Maison business.
Lanvin: Peter Copping returned to Paris Fashion Week with a debut collection, earning strong global acclaim.
Wolford: Launched 'In Your Own Skin' campaign to reinforce essentials positioning. Exploring expansion opportunities in emerging markets, particularly in the Middle East and APAC.
Sergio Rossi: Unveiled Paul Andrew's first collection, blending tradition with modern innovation. Targeting U.S. market expansion in the second half.
St. John: Revived iconic archival designs and collaborated with Malbon on a sport-lux capsule. Grew its core North American market despite volatility.
Caruso: Added new first-tier Maison accounts and received excellent press coverage at Pitti Uomo. Focusing on acquiring new wholesale accounts in expanding markets like the U.S.A., Benelux, and DACH.
Retail Optimization: Rightsized 29 underperforming stores to improve retail productivity.
Cost Management: Disciplined cost control measures reduced G&A expenses across brands, e.g., Wolford by 27%, Sergio Rossi by 25%, and St. John by 35%.
Inventory Management: Cleared excess stock and improved production efficiency, e.g., Wolford's gross margin improved from 49% to 65% in Q2.
Creative Leadership: Strengthened brand leadership with key appointments, e.g., new Deputy CEO at Wolford and new Chief Merchandising Officer at St. John.
Marketing Initiatives: Deploying targeted campaigns for new collections from Lanvin and Sergio Rossi to boost traffic and conversion.
Geographic Repositioning: Strategic repositioning in EMEA and Greater China to address market challenges.
Macroeconomic and Geopolitical Uncertainty: The company faced challenges due to persistent global macroeconomic and geopolitical uncertainty, which impacted overall market conditions and consumer sentiment.
Sector Softness and Creative Transitions: Performance was affected by sector-wide softness and creative transitions, leading to delayed market response to new collections and weaker wholesale demand.
Revenue Decline: Revenue decreased by 22% year-on-year in the first half of 2025, driven by softer market conditions and creative transitions.
Gross Profit Margin Decline: Gross profit margin dropped by 400 basis points to 54%, primarily due to sell-through of prior season inventory and underutilization of production capacity.
Regional and Channel-Specific Challenges: Significant revenue declines were observed in EMEA and Greater China, with major softness in wholesale and cautious consumer sentiment in these regions.
Operational Leverage and EBITDA Impact: Lower revenue led to a decrease in contribution profit margin and adjusted EBITDA margin, with adjusted EBITDA falling to negative EUR 52 million.
Inventory and Production Challenges: Sell-through of prior season inventory and underutilization of production capacity negatively impacted margins and operational efficiency.
Retail Network Optimization: The company rightsized 29 underperforming stores, which, while improving efficiency, reflects challenges in retail performance.
Brand-Specific Revenue Declines: Lanvin, Wolford, and Sergio Rossi experienced significant revenue declines due to weak wholesale demand, retail network rightsizing, and delayed consumer purchases.
Cost Management Pressures: While cost-saving measures were implemented, the need for strategic investments in creative development and marketing added pressure to the cost base.
Revenue Projections: Lanvin and Sergio Rossi's D2C revenue grew by 46% and 16% quarter-over-quarter, respectively, in Q2 2025. The company expects the launch of new collections in the second half of 2025 to drive renewed growth momentum across the group.
Margin Projections: Gross margin for Wolford improved from 49% in Q1 to 65% in Q2 2025, reflecting production efficiency and inventory clearance. Lanvin's gross margin improved sequentially from 52% in Q1 to 57% in Q2, with expectations of further optimization in the second half.
Strategic Plans for Growth: The company plans to execute a global integrated marketing campaign for Peter Copping's debut collection at Lanvin, amplify reach through targeted social media and e-commerce activations, and drive in-store traffic with refreshed visual merchandising and clienteling events. Wolford will celebrate its 75th anniversary with a brand push focusing on iconic products and expansion in emerging markets like the Middle East and APAC. Sergio Rossi will leverage Paul Andrew's new collection to reinvigorate the brand, expand the wholesale channel, and target the U.S. market. Caruso will support the relaunch of AAA Maison lines and acquire new wholesale accounts in markets like the U.S.A., Benelux, and DACH.
Operational Efficiency: The company will continue to streamline operations by rightsizing underperforming stores and optimizing the retail footprint. In H1 2025, 29 stores were streamlined, and further reviews are planned. Cost control measures will remain a priority to protect free cash flow and improve margins.
Market Trends and Recovery: The company anticipates recovery in the luxury market, with signs of improvement in Q2 2025. Strategic repositioning across geography and product assortment is expected to align with market recovery trends.
The selected topic was not discussed during the call.
The earnings call reflects significant challenges: a 22% revenue decline, gross margin drop, and negative EBITDA. Despite some positive D2C and specific brand performance, the overall financial health is concerning. The Q&A section lacks clarity in management responses, further weakening sentiment. Given the macroeconomic uncertainties and sector-specific challenges, the stock is likely to experience a strong negative reaction.
The earnings report highlights significant revenue declines across key regions and brands, decreased gross margins, and negative adjusted EBITDA. Despite operational efficiency improvements and leadership changes, macroeconomic challenges and supply chain issues persist. The Q&A section reveals unclear management responses and a lack of specific guidance, contributing to uncertainty. With no share buyback program to bolster investor confidence and a 23% overall revenue decline, the sentiment leans negative, likely resulting in a stock price drop of -2% to -8% over the next two weeks.
The earnings call highlights several negative factors such as a 20% revenue decline, macroeconomic headwinds, wholesale channel challenges, and integration issues. Although there are some positive aspects like improved gross profit margins and creative leadership, the lack of shareholder return plans and unclear management responses in the Q&A section further contribute to a negative sentiment. The market strategy involving aggressive retail adjustments and challenges in key regions like EMEA and Greater China also indicate potential risks. Overall, these factors suggest a likely negative stock price movement in the short term.
The earnings call summary presents mixed signals: financial performance shows modest growth, with improvements in gross profit margins and regional expansion. However, the luxury market softening and digital challenges pose concerns. The Q&A reveals strategic adjustments to address market softness and a delay in EBITDA breakeven to 2025. Despite optimism in specific initiatives, management's vague responses on Q1 2024 performance and CapEx targets add uncertainty. Overall, the sentiment is neutral as the positive aspects are balanced by challenges and uncertainties.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
