Latest news with #Lectra
Fashion Network
3 days ago
- Business
- Fashion Network
Lectra impacted by global uncertainty despite stable first-half revenue
Lectra, the French technology firm serving the fashion, automotive, and furniture industries, held steady in the first half of 2025, showing resilience amid mounting global economic headwinds. Led by CEO Daniel Harari, the company reported stable revenue, although profitability declined as clients hesitated to make investment decisions amid ongoing international trade tensions. As of June 30, 2025, Lectra reported sales of €261.3 million, unchanged from the same period in 2024. On a like-for-like basis, this reflected a slight 1% decline. This performance was supported by recurring revenue, which accounted for 73% of total sales and increased by 2% to €192.0 million. The company's SaaS subscription contracts contributed €43.6 million—17% of sales—marking a 13% increase. Recurring annual revenue stood at €90.9 million, representing a 6% increase on a like-for-like basis. Management stated that this growth 'confirms the relevance of Lectra's strategy.' Gross margin totaled €190.0 million, up 1%, with margin rate rising to 72.7%—a one-point increase attributed to a favorable sales mix and stronger cost control. However, recurring EBITDA dropped by 4% to €40.4 million, while net income remained stable at €11.1 million. Despite economic headwinds, the company maintained healthy cash flow. Effective management of working capital, which resulted in a negative balance of €41.6 million, enabled Lectra to generate €33.0 million in free cash flow. As of June 30, 2025, shareholders' equity stood at €343.8 million, with net debt at €34.1 million. Q2 performance reflects broader economic pressure The second quarter of 2025 highlighted the challenges facing the group. Lectra noted that the global economic downturn, which began in March, had extended across all regions and industry sectors. The company described April's U.S. tariff announcements as a 'shock' that 'exacerbated the sense of uncertainty weighing on the business climate.' This led to a significant slowdown in customer decision-making. As a result, orders for new systems dropped by 27% in Q2. Quarterly revenue fell by 4% in actual terms and 2% on a like-for-like basis. Recurring EBITDA reached €19.2 million, down 3% on a like-for-like basis. The company noted that 'frequent changes in the U.S. administration's decisions and the negotiations still underway leave a lingering uncertainty.' Although the direct impact of U.S. trade policy on Lectra remains limited—exports from Europe and China to the U.S. account for less than 10% of sales—the indirect effects are considerable. The hesitation among clients to invest, particularly those with global exposure, has significantly impacted business momentum. Key sectors hit hardest: Fashion and automotive Lectra's core markets—fashion and automotive—have been particularly vulnerable due to the United States' reliance on imports, according to company leadership. However, Lectra believes this volatility could create new opportunities in the medium to long term. In its statement, the company noted that these disruptions may ultimately lead to 'structural changes in the industrial landscape and supply chains,' potentially accelerating diversification of sourcing strategies and the relocation of production sites. Outlook: Annual targets revised amid persistent uncertainty Lectra had issued 2025 annual targets in February, signaling confidence in its ability to navigate a deteriorating environment. However, the group now says that 'no significant improvement allowing for a recovery in activity was apparent' by the end of the second quarter. As a result, the previously announced targets are 'no longer relevant.' Despite this, Lectra says it remains committed to its long-term strategy, citing 'solid fundamentals, notably low debt and strong free cash flow generation' as key enablers for future growth.
Fashion Network
3 days ago
- Business
- Fashion Network
Lectra impacted by global uncertainty despite stable first-half revenue
Lectra, the French technology firm serving the fashion, automotive, and furniture industries, held steady in the first half of 2025, showing resilience amid mounting global economic headwinds. Led by CEO Daniel Harari, the company reported stable revenue, although profitability declined as clients hesitated to make investment decisions amid ongoing international trade tensions. As of June 30, 2025, Lectra reported sales of €261.3 million, unchanged from the same period in 2024. On a like-for-like basis, this reflected a slight 1% decline. This performance was supported by recurring revenue, which accounted for 73% of total sales and increased by 2% to €192.0 million. The company's SaaS subscription contracts contributed €43.6 million—17% of sales—marking a 13% increase. Recurring annual revenue stood at €90.9 million, representing a 6% increase on a like-for-like basis. Management stated that this growth 'confirms the relevance of Lectra's strategy.' Gross margin totaled €190.0 million, up 1%, with margin rate rising to 72.7%—a one-point increase attributed to a favorable sales mix and stronger cost control. However, recurring EBITDA dropped by 4% to €40.4 million, while net income remained stable at €11.1 million. Despite economic headwinds, the company maintained healthy cash flow. Effective management of working capital, which resulted in a negative balance of €41.6 million, enabled Lectra to generate €33.0 million in free cash flow. As of June 30, 2025, shareholders' equity stood at €343.8 million, with net debt at €34.1 million. Q2 performance reflects broader economic pressure The second quarter of 2025 highlighted the challenges facing the group. Lectra noted that the global economic downturn, which began in March, had extended across all regions and industry sectors. The company described April's U.S. tariff announcements as a 'shock' that 'exacerbated the sense of uncertainty weighing on the business climate.' This led to a significant slowdown in customer decision-making. As a result, orders for new systems dropped by 27% in Q2. Quarterly revenue fell by 4% in actual terms and 2% on a like-for-like basis. Recurring EBITDA reached €19.2 million, down 3% on a like-for-like basis. The company noted that 'frequent changes in the U.S. administration's decisions and the negotiations still underway leave a lingering uncertainty.' Although the direct impact of U.S. trade policy on Lectra remains limited—exports from Europe and China to the U.S. account for less than 10% of sales—the indirect effects are considerable. The hesitation among clients to invest, particularly those with global exposure, has significantly impacted business momentum. Key sectors hit hardest: Fashion and automotive Lectra's core markets—fashion and automotive—have been particularly vulnerable due to the United States' reliance on imports, according to company leadership. However, Lectra believes this volatility could create new opportunities in the medium to long term. In its statement, the company noted that these disruptions may ultimately lead to 'structural changes in the industrial landscape and supply chains,' potentially accelerating diversification of sourcing strategies and the relocation of production sites. Outlook: Annual targets revised amid persistent uncertainty Lectra had issued 2025 annual targets in February, signaling confidence in its ability to navigate a deteriorating environment. However, the group now says that 'no significant improvement allowing for a recovery in activity was apparent' by the end of the second quarter. As a result, the previously announced targets are 'no longer relevant.' Despite this, Lectra says it remains committed to its long-term strategy, citing 'solid fundamentals, notably low debt and strong free cash flow generation' as key enablers for future growth.
Fashion Network
3 days ago
- Business
- Fashion Network
Lectra impacted by global uncertainty despite stable first-half revenue
Lectra, the French technology firm serving the fashion, automotive, and furniture industries, held steady in the first half of 2025, showing resilience amid mounting global economic headwinds. Led by CEO Daniel Harari, the company reported stable revenue, although profitability declined as clients hesitated to make investment decisions amid ongoing international trade tensions. As of June 30, 2025, Lectra reported sales of €261.3 million, unchanged from the same period in 2024. On a like-for-like basis, this reflected a slight 1% decline. This performance was supported by recurring revenue, which accounted for 73% of total sales and increased by 2% to €192.0 million. The company's SaaS subscription contracts contributed €43.6 million—17% of sales—marking a 13% increase. Recurring annual revenue stood at €90.9 million, representing a 6% increase on a like-for-like basis. Management stated that this growth 'confirms the relevance of Lectra's strategy.' Gross margin totaled €190.0 million, up 1%, with margin rate rising to 72.7%—a one-point increase attributed to a favorable sales mix and stronger cost control. However, recurring EBITDA dropped by 4% to €40.4 million, while net income remained stable at €11.1 million. Despite economic headwinds, the company maintained healthy cash flow. Effective management of working capital, which resulted in a negative balance of €41.6 million, enabled Lectra to generate €33.0 million in free cash flow. As of June 30, 2025, shareholders' equity stood at €343.8 million, with net debt at €34.1 million. Q2 performance reflects broader economic pressure The second quarter of 2025 highlighted the challenges facing the group. Lectra noted that the global economic downturn, which began in March, had extended across all regions and industry sectors. The company described April's U.S. tariff announcements as a 'shock' that 'exacerbated the sense of uncertainty weighing on the business climate.' This led to a significant slowdown in customer decision-making. As a result, orders for new systems dropped by 27% in Q2. Quarterly revenue fell by 4% in actual terms and 2% on a like-for-like basis. Recurring EBITDA reached €19.2 million, down 3% on a like-for-like basis. The company noted that 'frequent changes in the U.S. administration's decisions and the negotiations still underway leave a lingering uncertainty.' Although the direct impact of U.S. trade policy on Lectra remains limited—exports from Europe and China to the U.S. account for less than 10% of sales—the indirect effects are considerable. The hesitation among clients to invest, particularly those with global exposure, has significantly impacted business momentum. Key sectors hit hardest: Fashion and automotive Lectra's core markets—fashion and automotive—have been particularly vulnerable due to the United States' reliance on imports, according to company leadership. However, Lectra believes this volatility could create new opportunities in the medium to long term. In its statement, the company noted that these disruptions may ultimately lead to 'structural changes in the industrial landscape and supply chains,' potentially accelerating diversification of sourcing strategies and the relocation of production sites. Outlook: Annual targets revised amid persistent uncertainty Lectra had issued 2025 annual targets in February, signaling confidence in its ability to navigate a deteriorating environment. However, the group now says that 'no significant improvement allowing for a recovery in activity was apparent' by the end of the second quarter. As a result, the previously announced targets are 'no longer relevant.' Despite this, Lectra says it remains committed to its long-term strategy, citing 'solid fundamentals, notably low debt and strong free cash flow generation' as key enablers for future growth.
Fashion Network
3 days ago
- Business
- Fashion Network
Lectra impacted by global uncertainty despite stable first-half revenue
Home › News › Industry Translated by Nazia BIBI KEENOO Download Print Translated by Nazia BIBI KEENOO Lectra, the French technology firm serving the fashion, automotive, and furniture industries, held steady in the first half of 2025, showing resilience amid mounting global economic headwinds. Led by CEO Daniel Harari, the company reported stable revenue, although profitability declined as clients hesitated to make investment decisions amid ongoing international trade tensions. Lectra As of June 30, 2025, Lectra reported sales of €261.3 million, unchanged from the same period in 2024. On a like-for-like basis, this reflected a slight 1% decline. This performance was supported by recurring revenue, which accounted for 73% of total sales and increased by 2% to €192.0 million. The company's SaaS subscription contracts contributed €43.6 million—17% of sales—marking a 13% increase. Recurring annual revenue stood at €90.9 million, representing a 6% increase on a like-for-like basis. Management stated that this growth 'confirms the relevance of Lectra's strategy.'Gross margin totaled €190.0 million, up 1%, with margin rate rising to 72.7%—a one-point increase attributed to a favorable sales mix and stronger cost recurring EBITDA dropped by 4% to €40.4 million, while net income remained stable at €11.1 economic headwinds, the company maintained healthy cash flow. Effective management of working capital, which resulted in a negative balance of €41.6 million, enabled Lectra to generate €33.0 million in free cash flow. As of June 30, 2025, shareholders' equity stood at €343.8 million, with net debt at €34.1 million. Q2 performance reflects broader economic pressure The second quarter of 2025 highlighted the challenges facing the group. Lectra noted that the global economic downturn, which began in March, had extended across all regions and industry company described April's U.S. tariff announcements as a 'shock' that 'exacerbated the sense of uncertainty weighing on the business climate.' This led to a significant slowdown in customer a result, orders for new systems dropped by 27% in Q2. Quarterly revenue fell by 4% in actual terms and 2% on a like-for-like basis. Recurring EBITDA reached €19.2 million, down 3% on a like-for-like company noted that 'frequent changes in the U.S. administration's decisions and the negotiations still underway leave a lingering uncertainty.'Although the direct impact of U.S. trade policy on Lectra remains limited—exports from Europe and China to the U.S. account for less than 10% of sales—the indirect effects are considerable. The hesitation among clients to invest, particularly those with global exposure, has significantly impacted business momentum. Key sectors hit hardest: Fashion and automotive Lectra's core markets—fashion and automotive—have been particularly vulnerable due to the United States' reliance on imports, according to company leadership. However, Lectra believes this volatility could create new opportunities in the medium to long its statement, the company noted that these disruptions may ultimately lead to 'structural changes in the industrial landscape and supply chains,' potentially accelerating diversification of sourcing strategies and the relocation of production sites. Outlook: Annual targets revised amid persistent uncertainty Lectra had issued 2025 annual targets in February, signaling confidence in its ability to navigate a deteriorating environment. However, the group now says that 'no significant improvement allowing for a recovery in activity was apparent' by the end of the second quarter. As a result, the previously announced targets are 'no longer relevant.' Despite this, Lectra says it remains committed to its long-term strategy, citing 'solid fundamentals, notably low debt and strong free cash flow generation' as key enablers for future growth. This article is an automatic translation. Click here to read the original article. Copyright © 2025 All rights reserved. Tags : Fashion Ready-to-wear Fashion Industry Business
Fashion Network
3 days ago
- Business
- Fashion Network
Lectra impacted by global uncertainty despite stable first-half revenue
Lectra, the French technology firm serving the fashion, automotive, and furniture industries, held steady in the first half of 2025, showing resilience amid mounting global economic headwinds. Led by CEO Daniel Harari, the company reported stable revenue, although profitability declined as clients hesitated to make investment decisions amid ongoing international trade tensions. As of June 30, 2025, Lectra reported sales of €261.3 million, unchanged from the same period in 2024. On a like-for-like basis, this reflected a slight 1% decline. This performance was supported by recurring revenue, which accounted for 73% of total sales and increased by 2% to €192.0 million. The company's SaaS subscription contracts contributed €43.6 million—17% of sales—marking a 13% increase. Recurring annual revenue stood at €90.9 million, representing a 6% increase on a like-for-like basis. Management stated that this growth 'confirms the relevance of Lectra's strategy.' Gross margin totaled €190.0 million, up 1%, with margin rate rising to 72.7%—a one-point increase attributed to a favorable sales mix and stronger cost control. However, recurring EBITDA dropped by 4% to €40.4 million, while net income remained stable at €11.1 million. Despite economic headwinds, the company maintained healthy cash flow. Effective management of working capital, which resulted in a negative balance of €41.6 million, enabled Lectra to generate €33.0 million in free cash flow. As of June 30, 2025, shareholders' equity stood at €343.8 million, with net debt at €34.1 million. Q2 performance reflects broader economic pressure The second quarter of 2025 highlighted the challenges facing the group. Lectra noted that the global economic downturn, which began in March, had extended across all regions and industry sectors. The company described April's U.S. tariff announcements as a 'shock' that 'exacerbated the sense of uncertainty weighing on the business climate.' This led to a significant slowdown in customer decision-making. As a result, orders for new systems dropped by 27% in Q2. Quarterly revenue fell by 4% in actual terms and 2% on a like-for-like basis. Recurring EBITDA reached €19.2 million, down 3% on a like-for-like basis. The company noted that 'frequent changes in the U.S. administration's decisions and the negotiations still underway leave a lingering uncertainty.' Although the direct impact of U.S. trade policy on Lectra remains limited—exports from Europe and China to the U.S. account for less than 10% of sales—the indirect effects are considerable. The hesitation among clients to invest, particularly those with global exposure, has significantly impacted business momentum. Key sectors hit hardest: Fashion and automotive Lectra's core markets—fashion and automotive—have been particularly vulnerable due to the United States' reliance on imports, according to company leadership. However, Lectra believes this volatility could create new opportunities in the medium to long term. In its statement, the company noted that these disruptions may ultimately lead to 'structural changes in the industrial landscape and supply chains,' potentially accelerating diversification of sourcing strategies and the relocation of production sites. Outlook: Annual targets revised amid persistent uncertainty Lectra had issued 2025 annual targets in February, signaling confidence in its ability to navigate a deteriorating environment. However, the group now says that 'no significant improvement allowing for a recovery in activity was apparent' by the end of the second quarter. As a result, the previously announced targets are 'no longer relevant.' Despite this, Lectra says it remains committed to its long-term strategy, citing 'solid fundamentals, notably low debt and strong free cash flow generation' as key enablers for future growth.
