In the words of Zhen Huang, Chairman, Lanvin experienced a steadier second half following a tumultuous year where restructuring efforts started to show promise. Sales for the brand itself, however, observed a downturn of nearly a third.
Huang explained that despite the tough macroeconomic environment, the company continued to simplify its operations and bolster the long-term position of its brands.
The luxury conglomerate, a parent to brands like Lanvin, Wolford, Sergio Rossi, and St John, clocked in a full-year revenue of US$281 million, witnessing an 18% dip compared to the previous year.
This decrease in revenue mirrored a weakened demand in key markets, including EMEA and Greater China. This was also a result of ongoing plans such as shutting down stores and undertaking renovations.
The gross profit stood at $164 million, yielding a margin of 58%. Meanwhile, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss slightly reduced to $105.5 million.
Among all the brands under the group’s umbrella, Lanvin saw the most significant decline with a 30% drop in revenue, which amounted to $68 million.
Wolford followed suite with a 14% dip in revenue, amounting to $89.1 million. However, the company noticed an uptick in performance in the second half of the year, backed by a robust product inventory and a 19% surge in wholesale revenue.
Sergio Rossi also experienced a decline in revenue by 30%, bringing it down to $35.2 million.
Contrarily, St John demonstrated resilience as its revenue experienced a minor 1% drop, amounting to $91.5 million. The brand saw growth in the North American region and an increase in wholesale and e-commerce sales.
Huang expressed optimism regarding the upward momentum observed in the second half of the year and remained hopeful about the group’s ability to yield sustainable growth over time.
What was the full-year revenue of the luxury group?
The group reported a full-year revenue of US$281 million.
Which brand under the group’s umbrella recorded the sharpest decline in revenue?
Lanvin recorded the sharpest decline in revenue with a 30% fall.
Which brand proved to be more resilient and saw growth?
St John demonstrated resilience by maintaining its revenue with only a 1% drop and experiencing growth in North America with stronger wholesale and e-commerce sales.
