The luxury fashion conglomerate, Lanvin Group, which houses brands such as Lanvin, Wolford, Sergio Rossi, St John, and Caruso, has reported a decline in first-half revenue to US$155.6 million. This figure represents a 22% decrease compared to the same period last year due to the softening global luxury demand.
The group cited several factors that contributed to the decrease in sales, one of which was weaker wholesale in the EMEA region and Greater China. However, disciplined cost management and efficiency measures have begun to show positive impacts. Despite these challenges, the group’s gross profit stood at $84.2 million, maintaining a margin of 54%, aided by precise inventory management during a challenging period of creative transition.
Zhen Huang, the chairman of Lanvin Group, stated, “Despite facing a challenging luxury market in the first half, we remained disciplined in cost management and strategic streamlining. With new creative leadership and ongoing investment in product innovation, we are well-positioned to capture opportunities as the market environment improves.”
Lanvin saw the most significant drop in the group, with its revenue down by 42%, as wholesale partners in EMEA were more restrained. The brand noted some resilience in the retail sector in the same region and that its North American e-commerce platform showed strong recovery under a new marketplace model.
Wolford’s revenue declined by 23%, although its wholesale sales rose by 14%. The brand’s gross margin was affected by lower production utilization and inventory clearance, but the company managed to cut general and administrative expenses by 18% under cost-saving measures.
Sergio Rossi’s sales fell by 25%, with direct-to-consumer revenue down by 21% and wholesale sliding by 33%. It managed, however, to show some progress in Q2, with retail sales up by 17% and e-commerce climbing 10% from the previous quarter.
St John maintained a stable performance, with revenues remaining broadly flat. The brand sustained a 69% gross margin and an 11% contribution margin.
Caruso saw an 11% decline in its revenue, primarily due to a temporary slowdown in its Maisons business.
Adjusted EBITDA for the period was a negative $60.8 million, reflecting the lower revenue. This figure was less favorable than the negative $49.1 million reported for the previous year.
Andy Lew, the group’s executive president, stated that the group plans to refine its retail footprint in the future, strengthen wholesale partnerships, and invest in new creative leadership to drive momentum in the second half of the year. “Our focus in the first half was on operational discipline and laying the foundation for future growth. We expect to build brand momentum and increase consumer engagement in the second half with fresh creative direction across our houses, supported by targeted marketing and refined channel strategies.”
What factors contributed to Lanvin Group’s decline in revenue?
Answer: The decline in revenue was primarily due to weaker wholesale in the EMEA region and Greater China, along with general market pressures.
Which brand in the Lanvin Group saw the most significant drop in revenue?
Answer: Lanvin reported the most significant drop in revenue, with a decrease of 42%.
What are Lanvin Group’s plans for the future?
Answer: The group plans to refine its retail footprint, strengthen wholesale partnerships, and invest in new creative leadership to drive momentum in the second half of the year.
