On Thursday, Lanvin Gr Hldgs (NYSE:LANV) discussed full-year financial results during its earnings call. The full transcript is provided below.
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View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=glpMDf2X
Summary
Lanvin Gr Hldgs reported a revenue decline of 18% year-over-year to 240 million euros for 2025, primarily due to external market pressures and internal restructuring.
The company improved its operational efficiency, reflected in a gross margin of 58% and a 12% reduction in operating expenses.
Key strategic initiatives included streamlining the retail footprint, adopting an asset-light model, and optimizing the brand portfolio by carving out Caruso.
Lanvin and Wolford showed sequential improvement in the second half of the year, signaling positive effects of strategic actions.
Leadership changes were made to strengthen brand management, with new CEOs appointed at St. John and Wolford.
Regionally, North America outperformed, while Greater China faced significant challenges due to weaker consumer sentiment.
Lanvin Gr Hldgs aims to continue its transformation journey into 2026, focusing on sustainable profitability and further recovery of its brands.
Full Transcript
OPERATOR
Thank you for joining us and welcome to the Lanvin Gr Hldgs’ Fiscal Year 2025 financial results conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by . 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 Liu, Executive President of Lanvin Group and Ray Han, CFO of Lanvin Group. I will now turn it over to Andy to start the presentation.
Andy Liu (Executive President)
Good evening, good afternoon and good morning to everyone joining us today. Thank you for taking the time to participate in Lanvin Gr Hldgs’ 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 Gr Hldgs reported revenue of 240 million euro, 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 in 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 and enabling us to concentrate resources on our core brands, leverage external partnerships and further advance our Asset light operating model. And 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 have 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 7 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 2024, reflecting better product availability, improving sell through and more disciplined inventory management. At the same time, we continue to reduce operating expenses through structural cost optimization and improve the 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 …
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