Lanvin Group with Lanvin, Wolford, Sergio Rossi, St. John and Caruso in its portfolio of brands, generated revenue of 171 million euros, a 20 percent decrease versus the prior year.
The company said that the main drivers of revenue decline were global market softness coupled with a struggling wholesale market.
The group expects a challenging second half of 2024, but plans to remain proactive in its cost-reduction and operating efficiency efforts.
Commenting on the first half trading, Zhen Huang, chairman of Lanvin Group, said in a statement: “We faced a tumultuous market in the first half of 2024. While we anticipate this will continue for the near-term, we remain committed to the long-term growth of our group and our path to profitability.”
Highlights of Lanvin Group’s operational performance
DTC channel revenue decreased by 14 percent and wholesale revenue by 30 percent and other revenue comprising royalty and clearance income decreased 15 percent due to Lanvin’s reduction of clearance inventory.
The company’s regional revenue declined in EMEA by 27 percent and Greater China at 24 percent with Asia excluding Greater China decreasing by 7 percent, and North America by 11 percent.
Gross profit for the period declined to 98 million euros, representing a 58 percent margin, contribution profit was negative 7 million euros and adjusted EBITDA for the group declined to negative 42 million euros.
“Struggles in the wholesale channel compounded the issues of a softening global luxury market, in the first half of 2024. We spent much of the first half committed to our marketing plan, but also prioritised rationalising our cost base to fit the current market environment,” added Eric Chan, CEO of Lanvin Group.
Lanvin Group’s results across brand segments
Lanvin brand’s revenue decreased to 48 million euros, mainly due to a slowdown in global luxury consumption coupled with a challenging wholesale market. Retail including boutique and outlet was down 3 percent, while the overall DTC channel declined by 10 percent; and wholesale by 23 percent.
Globally, EMEA saw the largest decrease at 21 percent, driven by a decrease in European wholesale receipts. North America and APAC declined by 9 percent with Greater China at 14 percent; while APAC excluding Greater China generated positive 9 percent growth.
Wolford brand revenue declined by 28 percent to 43 million euros mainly driven by integration issues with its new logistics provider that resulted in significant delays in shipments. Additionally, the challenging wholesale market in Europe also impacted revenue. On a channel-basis, DTC decreased by 14 percent and wholesale by 53 percent. Geographically, EMEA saw the largest decrease at 34 percent, North America by 10 percent, and APAC by 24 percent with Greater China seeing a 20 percent decline.
Sergio Rossi revenue declined to 20 million euros or by 38 percent. The brand had a 49 percent decline in its largest market, EMEA, and 22 percent in APAC with Greater China decreasing by 34 percent. The DTC channel was down 17 percent overall and ecommerce by 2 percent. Wholesale, which includes third-party production, decreased by 60 percent.
Revenue at St. John decreased to 40 million euros or a decline of 14 percent. Ecommerce declined by 15 percent; and wholesale by 13 percent. North America decreased by 10 percent, while APAC was down 46 percent.
Caruso maintained flat revenue with a 1 percent decline. Caruso’s Maisons business, its third-party production unit showed some softness, but it was offset by its proprietary Caruso brand business which grew by 21 percent with strong sales of its ready-to-wear and made-to-measure products.
