2024 Q1 Sales

Q1 sales down by 5% in a macroeconomic environment that remains challenging. Detailing the action plan to deliver growth and profitability.

First quarter sales

• Q1 2024 sales at €287m, decreasing by -5% on an organic basis vs Q1 2023, against strong comparables.
• Good performance in America, resilience in Europe (excl. France) and slow consumption in China
• Sandro and Maje slight organic growth excluding China
• Maintained stringent discount rate policy, with a 2 points improvement of the in-season discount rate, mainly in Europe and North America
• On-going network optimization with 11 net closings during the quarter, mainly in Asia to reach 1,719 points of sales worldwide

Details and targets of mid-term action plan, based on four key priorities:

• Get back to profitable growth and gain market shares
  – From 2026 onward, once the network is optimized, get back to a mid-single digit sales CAGR
  – EBIT margin c.10% in 2026 and c. 12% by 5-years
• Rebalance geographical footprint
  – Retail: network optimisation with c.100 closings of dilutive stores, mainly in China over the 2 coming years
  – Wholesale: acceleration of the expansion, through partnerships
• Gain in agility and leverage on technological innovation to improve efficiency to deliver profitability
  – Increase the Group’s negotiating leverage on all types of expenses
  – Action plan rollout from 2024, with progressive effects, to reach €25m additional EBIT in 2026
• Protect cash to deliver a sound financial structure
  – Asset light investments based on a selective approach
  – Free-cash-flow generation of €50m in 2026