Lanvin Group Sales Grew 6.4% in H1
The luxury firm highlighted 13.9 percent growth in Greater China, but its flagship brand sputtered due to "fewer key product and marketing initiatives."
Lanvin Group reported revenues advanced 6.4 percent in the first half of the year to 214.5 million euros, and its gross profit margin improved to 58.5 percent.
The company, which debuted on the New York Stock Exchange last December, trumpeted growth across all channels and geographies, with Greater China advancing 13.9 percent, EMEA improving 5.3 percent, and North America inching up 2.6 percent.
Still, the numbers represent a slowdown from 2022, when Lanvin Group posted a 37 percent increase in revenues, and reflect that its flagship Lanvin brand sputtered in the first half of 2023, with revenues falling 10.8 percent to 64 million euros.
The company attributed the dip to “its focus on a creative transition as well as comparatively fewer product and marketing initiatives” in the six-month period versus a year ago.
In April, Lanvin parted ways with its creative director Bruno Sialelli, built dedicated teams for leather goods and accessories, and established Lanvin Lab, with rapper Future its first guest creative at an adjacent project spawned to incubate new ideas and concepts for the French house.
In a statement, Lanvin Group said the brand plans to reveal a new artistic director “in the coming months” who will work in tandem with Lanvin Lab to “drive brand heat more consistently going forward.”
By contrast, revenues gained 33.6 percent at Caruso, 22.4 percent at Sergio Rossi, 11.3 percent at St. John and 8.4 percent at Wolford.
Losses widened to 77.2 million euros, but the company said it’s on track to achieve breakeven in 2024 in terms of adjusted EBITDA.
“We continue our track record of global growth while we make progress on our path to profitability,” Joann Cheng, chairman and chief executive officer of Lanvin Group, said in a statement. “Our improvement in gross profit and contribution profit are evidence of our commitment to securing profitable growth. We have done the groundwork for our brands to accelerate their growth and are excited about our prospects for the remainder of 2023.”
She noted “several strategic reorganization decisions with respect to Lanvin…had an expected short-term impact in the first half of 2023. We believe we have now placed Lanvin in a much stronger position.”
The release noted that Lanvin reacquired its Japan trademarks from its longtime partner Itochu Corp. last March, which will now become its exclusive licensee and distributor.