Q4 2024 Lanvin Group Holdings Ltd Earnings Call

Operator: Thank you for joining us and welcome to the Lonvong Group's Fiscal Year 2024 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.

Thank you for joining us and welcome to the long bond group's fiscal year 'twenty 'twenty four 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.

Operator: After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded.

After todays presentation, there will be an opportunity to ask questions.

Please note this event is being recorded.

Operator: Now, please take a moment to review the disclaimer. 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.

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.

Looking statements are inherently subject to risks uncertainties and other factors and they are not guarantees of performance.

Operator: For today's presentation, I would like to introduce David Chan, Executive President and CFO of Lanvin Group.

Speaker Change: For today's presentation I would like to introduce David Chan Executive President and CFO of Lam Bonkers.

David Chan: and Andy Liu, Executive President of Lombog. I will now turn it over to David to start the presentation.

And Andy Lu Executive President of Longhorn group.

David Chan: I will now turn it over to David to start the presentation.

David Chan: Thank you, and welcome to all the participants. I'm David Chan, Executive President and CFO of Lamont Group. Today we'll take you through a comprehensive view of Longwang Group's performance in 2024.

David Chan: Thank you and welcome to all our welcome to you all the participants I'm, David Chan Executive President and CFO of La market.

David Chan: Today, we'll take you through a comprehensive view of long group's performance in 2024.

David Chan: the strategic actions we have taken to navigate a challenging environment and our roadmap for 2025 and beyond. The key topic today is to share how we overcame these hurdles and laid the groundwork for sustainable growth. 2024 was a year defined by macroeconomic Shifting Consumer Behaviors, an industry-wide software. yet. Within these challenges, we achieve critical milestones that position us for recovery. For fiscal year 2024, our global revenue was 329 million euro, 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 improve working capital management.

David Chan: The strategic actions, we have taken to navigate a challenging environment and our roadmaps for 2025 and beyond the.

David Chan: The key topic today is to share how we open can't be hurdles and lay the groundwork for sustainable growth.

David Chan: 2024 was a year defined by macroeconomic turbulence.

David Chan: Shifting consumer behaviors and industry wide softness yet within these challenges we achieved critical milestones that position us for recovery.

David Chan: For fiscal year 2024, mobile revenue was 329 million Europe.

David Chan: 23% decrease from fiscal year 2023.

David Chan: This decline reflects a broader industry trends, particularly in EMEA, and greater China, where macro economic pressures weighed heavily.

David Chan: Nevertheless, we took proactive measures to reduce G&A expenses and improve working capital management.

David Chan: We also consolidated our store network to optimize our retail footprint and concentrate on our core business unit.

David Chan: We also consolidated our store network to optimize our retail footprint and concentrate on our core business units.

David Chan: These efforts, along with the appointment of Andy Liu as Executive President, whose expertise in brand transformation, are expected to drive strategy implementation and bring transformative initiatives to our Andy's leadership, combined with new creative appointments along Bonacic-De Rossi, signals a new era of innovation in global business. Let's take a deeper look at our 2024 results. Despite a 12.23% 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 face challenges. We are encouraged by progress in operation efficiency.

David Chan: These efforts along with the appointment of Andy Lee.

David Chan: President who has expertise in Bryant brand transformation.

David Chan: Expect it to drive script.

David Chan: Strategy.

David Chan: <unk> and brain transformative initiatives drug group.

David Chan: Any leadership combined with new creative appointments, along bunch of Rossi signals, a new era of innovation and growth.

David Chan: Sure.

David Chan: Let's take a deeper look at our 2024 results. Despite its about 23% decline in revenue with effective cost control inventory management, well managed to maintain a stable gross margin at 56% compared with a gross margin of 55% last year.

David Chan: Contribution profit and adjusted EBITDA faced challenges.

David Chan: 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.

David Chan: GNA expenses were reduced by 15% year-over-year, a testament to our streamlined cost structure. We've also produced directly-operated stores, focusing on core and high-potential markets, such as EMEA for Longbottom and Sergio Rossi, and North America for 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 operation excellence and financial discipline. Since 2020, Blanbon Group has delivered 10% CAGR, underscoring the resilience of our diversified portfolio, our brands, Blanbon, Wofford, Sergi Rossi, St.

David Chan: We've also reduced directly operated stores focusing on core and high potential markets, such as EMEA for long bond and Sergio Rossi and North America, forcing job.

David Chan: We've made significant strides in cash management with 32% improvement in operating cash flow from 2022 2024.

David Chan: Driven by reduced inventory days and tighter receivable management.

David Chan: These results demonstrate our dedication to operational excellence and financial discipline.

David Chan: Since 2020, Lamon group has delivered a 10% CAGR underscoring the resilience of our diversified portfolio. Our branch lawn born Wolford, Sidra Rossi thing, John niche and Caruso each contributed to the growth performance.

David Chan: John Knits, and Caruso. Each contributed to the group's performance. leveraging their distinctive strength and strategies to grow our global community.

David Chan: Leveraging their distinctive strength and strategies to grow our global footprint.

David Chan: Let's turn our attention to slide 7, which highlights the revitalization efforts across our brand. During the past years, we have made significant strides in aligning them for sustainable growth. Starting with Caruso, our luxury tailoring powerhouse, and St. John, the iconic American luxury brand, both show 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 euros in 2024, thanks to strategic investments in brand repositioning and digital infrastructure.

David Chan: Let's turn our attention to slide seven which highlights the revitalization efforts across our brand portfolio.

David Chan: During the past few years, we have made significant strides in aligning them for sustainable growth, starting with traditional luxury tailoring powerhouse and seeing job iconic American luxury brands both showed strong improvements.

David Chan: Caruso contribution profit increased to $8 8 million Euro and $2 24 up from $3 2 million in 2022.

David Chan: Flexion about assessing the refine distribution strategy and growing demand for cruise was playful elegance and bespoke tailoring.

David Chan: Similarly, St. John's contribution profit grew from a loss of <unk> in 2022 8 million you wrote in 2024, thanks to strategic investments in brand repositioning and digital infrastructure with.

David Chan: We're confident that these steps will further amplify margins in the coming year. Lanvin, our crown jewel, saw revenue increase to 82.7 million euro in 2024, more than doubling from 35 million euro in 2020. This growth was driven by continued investment in increasing the brand's desirability and reinvigorating its Parisian heritage. while appealing to a new generation luxury consumer. Wolford Austrian Lakewear and ready to wear innovator also may We adjusted the product mix to position Wolfer as a full lifestyle brand expanding beyond legwear to cater to the growing demand for versatile high-end accessories. Finally, Sotorossi launched a global retail expansion since 2022, shifting from heavy reliance on wholesale and to enhance margin control and brand equity.

David Chan: We are confident that these steps will sort of ebb to find margins in the coming years.

David Chan: Longhorn our crown jewel so revenue increased to $82 7 million you wrote 24 more than doubling from 35 million Euro and jumped one.

David Chan: This growth was driven by continued investment in increasing the branch is our duty and we figured rate rating, it's Parisian heritage.

David Chan: While appealing to a new generation luxury consumers.

Speaker Change: Wohlfart Austrian Lake, we're ready to wear innovator also made strides we adjusted our product mix to position Gopro as a full lifestyle brand.

Speaker Change: Pending beyond lake where to cater to the growing demands what versatile client essentials.

Speaker Change: Finally, so degrassi logic mobile retail expansion since 2022 shifting from heavy reliance on coal, so and to enhance margin control and brand equity.

David Chan: While the top line is facing challenges, our foundational improvements set the stage for development.

Speaker Change: While the topline is facing challenges our foundational improvements set the stage for the bulk these.

David Chan: These achievements underscore our ability to focus on long-term strategic priorities while undergoing short-term challenges.

Speaker Change: These achievements underscore our ability to focus on long term strategic priorities, while undergoing short term challenges.

David Chan: Let's now turn to slides. which outlines our journey towards profitability. Over the past year, global headwinds, including inflationary pressures and shifting consumer behaviors, impacted our top-line performance.

Speaker Change: Let's now turn to slide eight.

Speaker Change: Which outlines our journey towards profitability over the past year global headwinds, including explained it inflationary pressures and shifting consumer behaviors impacted our top line performance.

David Chan: However, we responded decisively by sharpening our focus on operation efficiency and cost There are three key pillars of our turnaround plans, which includes, first, gross profit resilience. Despite revenue declines, we maintain strong gross margins, reflecting disciplined pricing and reduced promotional activity. Second, OPEX streamlining. We continue to reduce operating expenses since 2022, a testament to our commitment to leaner operations. Last but not least, is breakeven optimization. We've narrowed our breakeven point through rigorous cost management, ensuring our position to capitalize on revenue. In 2022, our OPEX, which includes marketing, selling, and G&A expenses, stood at $378 million.

Speaker Change: Remember, we reposition we responded decisively by sharpening our focus on operational efficiency and cost discipline.

Speaker Change: There are three key pillars of our turnaround plan, which includes first gross profit resilience. Despite revenue declines we maintained strong gross margins, reflecting disciplined pricing reduced promotional activity.

Speaker Change: Opex streamlining we continued to reduce operating expenses since 2022, a testament to our commitment to leaner operations.

Speaker Change: Last but not least is breakeven optimization with narrow our breakeven point through rigorous cost management, ensuring our position to capitalize on revenue recovery.

Speaker Change: In 2022, our Opex, which includes marketing selling and G&A expenses stood at 378 million Euro VI.

David Chan: By 2024, we reduce this to $326 million, a 14% cumulative saving over two years. Equally important is our improved cash flow. Net cash use 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 reducing inventory days through minimizing excess stock and accelerating receivable collection.

Speaker Change: By 2024 will reduce this to 326 million% to 14% cumulative saving over two years.

Speaker Change: 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.

Speaker Change: Was achieved through tighter working capital controls, including reduced reducing inventory days to minimizing access to a stock Saturday receivable collection.

David Chan: In 2024, we welcome new creative leadership with appointment of Peter Coffin as Artistic Director of Lombard and Paul Andrew as Creative Director of Sergio Rossi. Their vision and creativity are already making significant impact on our brands. As seen in the positive reception of Lombard's debug show under Peter Coffin in January.

Speaker Change: In 2024, we welcome new creative leadership with the appointment of Peter Coffee as artist direct drop all born and Paul Andrew as creative director of surgery Rafi.

Their vision and creativity are already making significant impact on our branch seed and the positive reception of La Bourse Deepak show under Pizza coffee in January.

Andy Liu: I will now hand over to Andy, who will provide insights into our achievements in 2024 and strategic priorities in 2025. Thank you, David. I'm Andy Liu, and I'm honored to serve as the Executive President of Longmang Group, and I'm thrilled to share our brand-level achievements in 2024. Starting with our iconic flagship brand, Longbond.

Speaker Change: I would now hand over to Andy who will provide insights into our cheap and John 24 strategic priorities in 2025.

Thank you David I'm, Andy Lou and I'm honored to serve as executive President of lumbar group.

Speaker Change: Thrilled to share our brand level achievements in 2024.

Speaker Change: Starting with our iconic flagship brands Longhorn as mentioned by David in June 2024, we announced Peter coping as artistic director locking a pivotal moment for the brand Peters fresh creative vision is already reinvigorate long bonds TNA blending timeless elegance with contemporary artist.

Andy Liu: As mentioned by David, in June, 2024, we announced Peter Coping as Artistic Director, marking a pivotal moment for the brand. Peter's fresh, creative vision has already reinvigorated Longbond's DNA, blending timeless elegance with contemporary artissery. Longbond has also launched the Character Studies Series, a bold initiative that bridges couture and modern culture. This was further amplified by our collaboration with choreographer Benjamin Milpede, whose work brought a dynamic, performative edge to our campaign. Financially, Fonbon demonstrated remarkable resilience. Despite market pressures, we maintained a stable gross profit margin. through discipline, cost control, and inventory optimization.

Speaker Change: Long bonds has also launched the cure character study series of bold initiatives that bridges couture and more modern culture.

Speaker Change: This was further amplified by our collaboration with choreographer Benjamin No Pete.

Speaker Change: It was worth about a dynamic.

Speaker Change: Performance edge to our campaigns.

Speaker Change: Financially Amman demonstrated remarkable resilience despite market pressures, we maintained maintained a stable gross profit margin.

Speaker Change: Through disciplined cost control and inventory optimization. The highlight was Peter <unk> fashion show in Paris, He triumphantly trying to I'll against it.

Andy Liu: The highlight was Peter Coping's debut fashion show in Paris, a triumphant return to elegance that garnered global acclaim and set the stage for our Fall 2025 collection.

Speaker Change: Garnered global claim and set the stage for a fall 2025 collection.

Andy Liu: Now, let's shift our focus to Wolfert. Wolford is crafting compelling brand campaigns and product interviews that not only highlight its unique value proposition, but also elevate its positioning within the luxury market. Those marketing campaigns highlighted Wolfrid's unique value proposition.

Speaker Change: Now, let's shift our focus to Walford.

Speaker Change: Walmart is crapping compelling brand campaigns and product areas that not only highlighted the unique value proposition, but also elevate its positioning within the luxury market.

Speaker Change: Those marketing campaigns highlighted wolf, what's unique value proposition collaborations like the Petro.

Andy Liu: Collaborations like the Etro x Wolfrid capsule collection merging Italian flair with Austrian precision not only expanded our audience but also reinforced cultural relevance. Lastly, Wolford is enhancing the brand experience through a refreshed webshop identity and optimized retail and wholesale distribution, ensuring a cohesive and premium brand presence across all touchpoints.

Speaker Change: That's also a capsule collection emerging Italian flare with Austrian position not only expanded our audience, but also reinforced cultural relevance.

Speaker Change: Lastly, Watford is enhancing the brand experience to our refreshed the web shop identity, and optimize retail or wholesale distribution, ensuring a cohesive and premium brand presence across all touch points.

Speaker Change: Turning to Sergio Rossi in July circular Rocky appointed Paul Andrew as creative director.

Andy Liu: Turning to Sergio Rossi.

Andy Liu: In July, Sergio Rossi appointed Paul Andrew as Creative Director, a visionary move to redefine Italian footwear. Paul's Fall 2025 collection, set to debut in Milan, blends architecture, boldness, and timeless craftsmanship. Sergio Rossi also optimized its retail network, focusing on key markets like EMEA and Japan. Efficiency continued to be a priority for Sergio Rossi, with factory structuring measures 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. spanning its global footprint.

Speaker Change: <unk> moved to redefine Italian footwear, Pauls fall 'twenty to 'twenty five collection.

Speaker Change: Are you in Milan plans architecture, boldness and timeless craftsmanship so.

Speaker Change: <unk> also authorized its retail network focusing on key markets like EMEA and Japan.

Speaker Change: Efficiency continues to be a priority for Sergio Rossi with Doctor restructuring measures aimed at improving production lead time and productivity all while reducing costs.

Speaker Change: Additionally, Sergio Rossi has expanded its wholesale by opening franchise stores in the middle East and Taiwan's through local partnerships.

Speaker Change: Spanning its global footprint.

Andy Liu: St. John's 2024 strategy centered on focus and agility. We streamlined operations to prioritize North America, upgrading flagship stores in Beverly Hills and New York. These spaces now showcase our news 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 platform is already showing improvements and conversions.

Speaker Change: St. John's 2024 strategy centered on focused anecdotally, we streamlined operations to quietly North America upgrading flagship stores in Beverly Hills, and New York.

Speaker Change: These statements now showcase our newest collection, which marries classic news with tech fabrics and a modern edge.

Speaker Change: Our new whole session model.

Speaker Change: Developed with our partnership with Nordstrom improved marching salt and brand consistency.

Speaker Change: Italy, the revamped E Commerce platform has already shown improvements on conversions.

Andy Liu: Lastly, the shift in asset-light model, including the sale of non-core products, enhance our operational flexibility.

Speaker Change: Lastly, the shift to an asset light model, including the sale of noncore products enhance our operational flexibility.

Andy Liu: Finally, Caruso. Improvised resilience, despite a challenging luxury landscape. Not only did Caruso achieve its revenue growth in its proprietary brand business, margin improvement was a standout. Positive net profit and robust cash flow underscored the success of Caruso's strategy.

Speaker Change: Finally caruso.

Speaker Change: <unk> resilience, despite a challenging luxury landscape not only the crusoe achieved its revenue growth and its proprietary planned business margin improvement was the standout.

Speaker Change: And net profit and robust cash flow underscored the success of <unk> strategy.

Andy Liu: Brandon Peel is growing for Crusoe thanks to high standard yet efficient content creation, credible collaborations and trade events that resonate with their customers. Effective prototype and fashion showpieces management have also played a crucial role in the success.

Speaker Change: Brandon deal is growing for cruise so thanks to a high standard yet efficient content creation.

Speaker Change: Bold collaborations and trade events that resonate with our customers.

Speaker Change: That's a prototype and fashion show pieces management have also played a crucial role in our success.

Andy Liu: 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.

Speaker Change: Preceding the page 22, I am pleased to present, our strategic priorities for 2025.

Speaker Change: It is designed to drive growth agility and possibly across the portfolio.

Speaker Change: First and foremost leadership and organization organizational excellence, we are building a dynamic leadership team to binding industry veterans with fresh perspectives to foster innovation and rapid decision making.

Andy Liu: Our new European headquarters, based in Milan, will enhance regional oversight, streamline operations, and strengthen relationships with key stakeholders.

New European headquarters based in Milan will enhance regional oversight streamline operations infection relationships with key stakeholders.

Andy Liu: Second, Creative Momentum, the appointments of Peter Kopien 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 activation.

Speaker Change: Second creative momentum the appointment of Peter Coking and Paul Andrew Mark a new era of artistic vision their collections will reinvigorate brand relevant supported by 360 degree marketing campaigns from runway shows to social media Activations.

Andy Liu: Third, operational efficiency remains a cornerstone. We'll continue optimizing store networks, prioritizing high traffic locations, and refining inventory management and pricing strategies to improve cash conversion cycles and reduce work and capital.

Speaker Change: Third op shallow operational efficiency remains a cornerstone will continue optimizing store networks prioritizing high traffic locations and refining inventory management and pricing strategies to improve cash conversion cycles and reduced working capital.

Andy Liu: 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.

Speaker Change: Fourth market expansion.

Speaker Change: Two key cities well tapping into high growth luxury markets in the middle East in five new franchise stores.

Speaker Change: As an example circle Rossi in Dubai Mall and partnerships are key initiatives for us. Additionally, we'll keep Austin senior to explore emerging category to diversify revenue streams.

Andy Liu: Additionally, we'll also continue to explore emerging categories to diversify revenue streams. At Lombong Group, we view challenges as 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.

Speaker Change: At Longhorn group, we'd be challenges as catalysts the transformation puts.

Speaker Change: 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.

David Chan: With that, I'd like to turn it back to David to go through some of the consolidated and brand-level results in 2024.

Speaker Change: With that I'd like to turn it back to David to go through some of the consolidated and brand level results in 2024.

David Chan: Thank you, Andy. The year 2024 was marked by significant macroeconomic challenges, yet two brands within the Lamon Group portfolio demonstrated notable resilience. St. John and Caruso stood out amidst 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, helped 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 of These assess partially offset pressure seen in other. Longbong, grappling with creative transitions and softer luxury demand, saw revenue decline, while Sotorossi impacted by EMEA wholesale softness and reduced third-party production.

David Chan: Thank you Andy the year 2024 was marked by significant macroeconomic challenges yet two brands within the gnomon Glu portfolio demonstrated notable resilience thing John Caruso stood out amidst broader declines.

David Chan: Leveraging strategic regional focus and operational agility, Jeanne Johns emphasis on North America, coupled with its premium positioning and successful partnership with Nordstrom helps stabilize performance. Similarly Caruso.

David Chan: Facing a mild revenue dropped achieved double digit growth in its own brand business.

David Chan: Driven by strong demand for its playful yet elegant collections and made a measure offerings thesis.

David Chan: These are SaaS, partially offset pressure seen in other branch.

David Chan: Born grappling with creative transitions and softer luxury demand saw revenue decline, while certain rossi impacted by EMEA wholesale softness and reduced third party production.

David Chan: Wofford is also negatively influenced by logistic integration, starting from Q2 2024.

Walter: Walter It's also negatively influenced by logistics integration starting from Q2 2024.

Walter: To put this into perspective.

David Chan: to put this into perspective. In terms of group level adjusted EBITDA in 2024, we estimate that the integration of world-famous logistics had an impact ranging from 14 million to 18 million euro. And the creative transition Stripping out these transitional costs, our 2024 adjusted EBITDA is estimated at negative 64 million to negative 73 million. Europe, a range consistent with our 2023 results. This stability is notable given the significant slow demand environment in John 24, underscoring our ability to maintain operational discipline amid external pressure.

Walter: In terms of group level adjusted EBITDA in 2024, we estimate that the integration of Whirlpool logistics had an impact ranging from 14 million to 18 million euro and the creative transition.

Speaker Change: Impact of between $5 million to $10 million.

Speaker Change: Stripping out these prints yet transitional costs. Our 2024 adjusted EBITDA is estimated at negative $64 million to negative $73 million.

Speaker Change: Hello.

Speaker Change: Our range consistent with our 2023 results.

Speaker Change: This stability is notable given the significant smoke slow demand environment, and John 24, underscoring our ability to maintain operational discipline amid external pressures.

David Chan: I will now provide with more details on the 2024 financial results for each grant.

Speaker Change: I will now provide with more details on the 224 financial results will each graph.

David Chan: 2024, as we mentioned, was a transitional year for Longbottom. Revenue declined 26% to 83 million euro, reflecting softer luxury demand and creative leadership gap. While wholesale faced pressure, retail network optimizations and D2C resilience mitigated decline. In the same time, Longmong stabilizes margins through disciplined action. Gross Margin Improved to 59% Supported by Pricing Discipline and Inventory Management GNA expenses were reduced by 14 percent, underscoring operational efficiency.

Speaker Change: 2024, as we mentioned was a transitional year for lumbar revenue declined 26% to 83 million euro, reflecting softer luxury demand and creative leadership gaps.

Speaker Change: While wholesale faced pressure retail network optimizations and D to C. Brazilians mitigated decline.

Speaker Change: In the same time longmont stabilize margins through disciplined actions.

Speaker Change: Gross margin improved to 59% supported by pricing discipline and inventory management.

Speaker Change: <unk> expenses were reduced by 14% underscoring operational efficiencies.

David Chan: The appointment of Peter Coffey as Artistic Director marked a turning point. Acclaimed January 2025 fashion show has already reignited industry in with new collections set to launch in second half of 2000. We're confident that Peter's creative vision and targeted investment will drive momentum in 2025.

Speaker Change: The appointment of Peter copying us artistic director market. Turning point is a claim January 2025 fashion show is already you've reignited industry interest with new collection set to launch in second half of 2025.

We are confident that Peter's creative vision and targeted investment will drive momentum John 25.

David Chan: Moving on to Wolfer. Wolfer navigated significant challenges in 2024, with revenue declining 30% to $88 million. macroeconomic volatilities, logistic disruption, and wholesale softness emia weighted on results.

Speaker Change: Moving on to Wolf Wolfram navigating some difficult challenges in 2024 with revenue decline declining 30% to 88 million Matt.

Speaker Change: Macroeconomic volatilities.

Speaker Change: Logistic disruption and wholesale softness EMEA weighed on results.

David Chan: Looking ahead, Wolfers' 75th anniversary in 2025 will be a catalyst. We are streamlining product launches, stabilizing operation, and leveraging digital channels to reconnect with loyal customers.

Speaker Change: Looking ahead, what were 75th anniversary in 2025 will be a catalyst.

Speaker Change: We are streamlining product launches stabilizing operation and leveraging digital channels can reconnect with loyal customers well for also has established a new management board aimed at sustainable future growth for the company.

David Chan: Wolfer also has established a new management board to aim at sustainable future growth for the company.

David Chan: Now, I'd like to discuss... So the Rossi phase headwinds in June 24, with revenue down 30% to 42 million euro. E-mail 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%.

Speaker Change: Now I'd like to discuss with your bosses.

Speaker Change: Rossi face headwinds of John 24, with revenue down 30% to 42 million Euro EMEA market declined 35%, mainly due to wholesale conditions and planned reduction of lower margin third party production.

Speaker Change: Great of trying to market declined 35% due to the challenging retail market, Japan market showed a slight decrease of 8% key action included administrative expenses reduced by 18% through cost control and appointed Paul Andrew as Great Director, whose first collection aims to revitalize the wholesale partnership in July 25.

David Chan: Key action included administrative expenses reduced by 18% through cost control. And appointment of Paul Andrew as Greater China Director, whose first collection aims to revitalize wholesale partnership in 2025. while gross margin fell to 43%.

Speaker Change: While gross margin fell to 43% wholesale channel enhancements and targeted regional partnership will stabilize margins.

David Chan: Wholesale Channel Enhancement and Targeted Regional Partnership with Stabilized Bonds. Certainty's focus on operational efficiencies and fresh designs in 2025 will be critical to recovery.

Speaker Change: <unk> focus on operational efficiencies and fresh designs in China, 25 will be critical to recovery.

David Chan: Moving to St. John, St. John's demonstrated resilience in 2024, while revenue declined 12% to 79 million euro, strategic focus yielded critical wins. Gross margins surged 6 percentage points to 69% from 63%. driven by full price, sell-through, and a successful partnership with Northstar.

Speaker Change: Moving to thank John St. John's demonstrating resilience in 2024, while revenue declined 12% to 79 million Euro strategic focus yielded critical wins.

Speaker Change: Gross margin search six eight percentage points to 69% from 63% driven.

Speaker Change: Driven by full price sell through and successful partnership with Nordstrom.

David Chan: North America out. contributing 94% of the revenue, while intent that the national markets were streamlined to reduce complexity.

Speaker Change: North America outperformed contributing 94% of revenue, while intense international markets with streamline to reduce complexity.

David Chan: In 2025, St. John's will deepen its North America focus, emphasizing Southern California heritage through storytelling and network leadership. Enhanced digital capability is targeted to further amplify customer engagement.

Speaker Change: In 2025, St. John will deepen its north American focus emphasizing southern California heritage through storytelling and knitwear leadership.

Speaker Change: Enhanced digital capability is targeted towards amplifying customer engagement.

David Chan: Finally, I'd like to discuss Caruso's results. Caruso's navigated a tough luxury landscape with agility. Revenue decreased 7% to 37 million euro. The Caruso brand business grew double digits, fueled by the strong demand for its playful, elegant collection and made-to-measure offer. Growth Margin held steady at 29%, with Contribution Profit Margin stabilized at 24%.

Speaker Change: Finally, I'd like to discuss Caruso as results.

Speaker Change: Caruso navigating a tough luxury landscape with agility.

Speaker Change: Revenue decreased 7% to $37 million, the Caruso brand business grew double digits skewed by the strong demand for its place.

Speaker Change: Allergan collection and made to measure offerings.

Speaker Change: Gross margin held steady at 29% with contribution profit margin stabilized at 24% in 2025 Caruso as we expand distribution and amplify marketing efforts Caruso craftsmanship and service excellent position it to outperform even in a challenging market.

David Chan: In 2025, Caruso's will expand distribution and amplify marketing. through his craftsmanship and service excellence position it to outperform even in a challenging time.

Andy Liu: 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 Crusoe, 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, Sloan Von 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.

Speaker Change: At this point I think to have Andy provide some final remarks.

Speaker Change: Yeah.

Andy: Thank you David for the review in closing I want to emphasize that Longhorn group strength lies in our diverse brand portfolio and deep connections with loyal customers each brand lawn button Wolford Sorta Rossi, St John and Crusoe brings unique cherokees and craftsmanship.

Speaker Change: The foundation of an enduring luxury appeal.

Andy: 24 tests at our resilience, but there's also sharpened our strategy.

Andy: While challenges persist persist long bond group as emerging leaner more focused and better positioned to capitalize on luxuries long term fundamentals.

Speaker Change: As we enter 2025, we do so with optimism Peter Collins, New collection Woolford anniversary campaign, and Paul Andrews vision for social Rafi are just the beginning with a revitalized team or poised to turn this pivotal moment in to a decade of growth.

Andy Liu: Peter Coping's new collection, Wolford's anniversary campaign, and Paul Andrews' vision for Sojourn Rossi are just the beginning.

Andy Liu: With a revitalized team, we're poised to turn this pivotal moment into a decade of growth. Thank you for your time today.

Andy: Thank you for your time today now I'll hand, it back for questions.

Operator: Now I'll hand it back for questions. Thank you, David and Andy, for that comprehensive overview.

Speaker Change: Thank you, David and Andy for that comprehensive overview.

Operator: We will now open the floor to questions. To ask a question, you may press star, then 1 on your Touchstone phone. If you are using a speakerphone, please pick up your handset before pressing the button. If at any time your question has been addressed and you would like to withdraw your Please press star then.

Andy: We will now open the floor to questions.

Speaker Change: To ask a question you May Press Star then one on your Touchtone phone.

Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.

Speaker Change: 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.

Operator: At this time, we will pause momentarily to assemble our roster. Once again, if you would like to ask a question, please press star, then 1 to join the question queue.

Speaker Change: Once again, if you would like to ask a question. Please press Star then one to join the question queue.

Operator: This concludes our question and answer session and concludes our conference call today. Thank you for attending today's presentation.

Speaker Change: This concludes our question and answer session and concludes our conference call today. Thank.

Speaker Change: Thank you for attending today's presentation you may now disconnect.

Operator: You may now disconnect.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: [music].