| Expenses by nature |
8.Expenses by nature | | | | | | | | | For the years ended December 31, | (Euro thousands) | | 2025 | | 2024* | | 2023* | Personnel costs | | 118,571 | | 134,215 | | 148,932 | Raw materials, consumables and finished goods used | | 64,457 | | 85,674 | | 110,972 | Changes in inventories of finished goods and work in progress | | 11,415 | | 9,763 | | 3,890 | Freight and selling expenses | | 38,037 | | 40,210 | | 50,018 | Depreciation and amortization | | 39,231 | | 45,349 | | 45,794 | Professional service fees | | 31,982 | | 32,534 | | 40,419 | Advertising and marketing expenses | | 17,367 | | 27,861 | | 35,725 | Lease expenses | | 18,108 | | 25,818 | | 27,631 | Studies and research expenses | | 6,859 | | 5,231 | | 6,311 | Office expenses | | 5,227 | | 4,502 | | 5,949 | Travel expenses | | 2,823 | | 3,389 | | 4,383 | Net foreign exchange losses/(gains) | | 13,248 | | (7,709) | | 4,610 | Taxes and surcharges | | 2,321 | | 3,325 | | 2,058 | Impairment of goodwill and brand(Note 15、16) | | 66,730 | | 31,208 | | — | Provisions and impairment losses(exclude goodwill and brand) | | 5,878 | | 3,819 | | (265) | Fair value changes on warrants | | (950) | | (2,818) | | (4,961) | Other | | 14,579 | | 16,258 | | 23,691 | Total expenses | | 455,883 | | 458,629 | | 505,157 |
* | In accordance with IFRS 5, the expense information for 2024 and 2023 has been restated, with the Caruso Brand presented as a discontinued operation (see Note 12). |
Breakdown for personnel costs: | | | | | | | | | For the years ended December 31, | (Euro thousands) | | 2025 | | 2024* | | 2023* | Salaries and wages | | 86,196 | | 99,974 | | 107,843 | Social contributions and pension plans | | 23,297 | | 27,200 | | 26,545 | Employee share-based compensation | | 184 | | 551 | | 2,749 | Severance indemnities | | 3,304 | | 922 | | 3,416 | Other benefits | | 5,590 | | 5,568 | | 8,379 | Total personnel costs | | 118,571 | | 134,215 | | 148,932 |
Breakdown for lease expenses: | | | | | | | | | For the years ended December 31, | (Euro thousands) | | 2025 | | 2024* | | 2023* | Variable lease payments | | 17,659 | | 25,206 | | 25,964 | Expenses relating to low-value leases | | 226 | | 134 | | 293 | Expenses relating to short-term leases | | 223 | | 478 | | 1,374 | Total lease expenses | | 18,108 | | 25,818 | | 27,631 |
The Group’s variable lease payments are typically linked to sales without a guaranteed minimum. Lease payments not required to be capitalized as right-of-use assets under IFRS 16 (short-term and low-value leases) are recognized as the expense is incurred. Breakdown for provisions and impairment losses (exclude goodwill and brand): | | | | | | | | | For the years ended December 31, | (Euro thousands) | | 2025 | | 2024* | | 2023* | Reversal of obsolete inventories | | (3,111) | | (5,474) | | (5,824) | Provisions for trade and other receivables | | 3,462 | | 1,439 | | 157 | Other provisions | | 962 | | 804 | | (918) | Impairment of right-of-use assets | | 3,728 | | 5,789 | | 3,516 | Impairment of property, plant and equipment | | 837 | | 1,261 | | 2,804 | Total provisions and impairment losses (exclude goodwill and brand) | | 5,878 | | 3,819 | | (265) |
Impairment of property, plant and equipment and right-of-use assets primarily relate to impairment of leased stores.
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