Lanvin Group, which houses well-known luxury brands such as Lanvin, Wolford, Sergio Rossi, St John, and Caruso, recorded a decrease in revenue during the first half of the year. The group reported US$155.6 million in revenue, marking a 22% drop in comparison to the previous year. The drop was largely attributed to a global decrease in luxury demand.
The group’s sales were negatively influenced by a decline in wholesale performance in both EMEA (Europe, the Middle East, and Africa) and Greater China. Market pressures also contributed to the decline. Nevertheless, Lanvin Group expressed optimism, noting the positive impact of disciplined cost management and efficiency measures.
The group achieved a gross profit of $84.2 million, with a profit margin of 54%. This was supported by efficient inventory management during a period of creative transition. Zhen Huang, chairman of Lanvin Group, stated that the group remained disciplined in cost management and strategic streamlining, despite a challenging luxury market in the first half of the year.
Among the brands under the Lanvin Group, Lanvin experienced the most significant decline, with revenue dropping by 42%. This was primarily due to a lack of enthusiasm from wholesale partners in EMEA. Still, the brand reported resilience in the region’s retail sector and noted progress in the Asia-Pacific region. Lanvin also reported a strong rebound in North American e-commerce, thanks to a new marketplace model.
Wolford revenue declined by 23%, but wholesale sales rose by 14%. Lower production utilization and inventory clearance impacted the gross margin, but cost-saving measures helped cut general and administrative expenses by 18%.
Sergio Rossi saw a 25% decrease in sales, with direct-to-consumer revenue and wholesale declining by 21% and 33% respectively. The gross margin narrowed by nine percentage points, but an improved second quarter saw retail sales increase by 17% and e-commerce sales increase by 10% compared to the previous quarter.
St John maintained steady revenue, with a 4% growth in North America and an 11% increase in wholesale. The brand also managed to maintain a 69% gross margin and an 11% contribution margin.
Caruso experienced an 11% decline in revenue, primarily due to a temporary slowdown in its Maisons business.
Andy Lew, the executive president of the group, indicated that going forward, they plan to refine their retail footprint, strengthen wholesale partnerships, and invest in new creative leadership to drive growth in the second half of the year.
Furthermore, the group intends to maintain operational discipline while focusing on future growth. By incorporating fresh creative direction across all their brands, supported by targeted marketing and refined channel strategies, they aim to build brand momentum and increase consumer engagement.
What was the total revenue reported by Lanvin Group in the first half of the year?
The group reported a revenue of US$155.6 million.
Which brand under the Lanvin Group experienced the most significant revenue decline?
Lanvin brand experienced the sharpest revenue decline at 42%.
What are some of the strategic measures the group plans to implement in the second half of the year?
The group plans to refine its retail footprint, strengthen wholesale partnerships, and invest in new creative leadership. In addition, the group aims to maintain operational discipline, introduce fresh creative direction across their brands, and enhance marketing and channel strategies.
