Lanvin Group Demonstrates Sales Resilience and Progress in Margin Enhancement Throughout 2023

Lanvin Group, listed on the NYSE as LANV, unveiled its 2023 full-year results, showcasing resilience and growth across its portfolio of luxury fashion brands including Lanvin, Wolford, Sergio Rossi, St. John, and Caruso. Despite market challenges, the Group reported a revenue of €426 million, marking a 1% increase compared to 2022, along with a gross profit of €251 million, reflecting a 59% gross margin, and a notable 250 basis points rise from the previous year.

Zhen Huang, Chairman of Lanvin Group, expressed his honor at leading the Group in 2023, reflecting on its journey since inception in 2018. He commended the resilience demonstrated during the pandemic and emphasized the continued strength and adaptability exhibited throughout 2023, expressing optimism towards future growth and profitability.

CEO Eric Chan credited the Group’s managers and teams for driving results despite market challenges. He praised their efforts in maintaining growth and steering the Group towards profitability, highlighting the collective dedication to brand growth and profitability goals.

The Group sustained its growth trajectory despite industry headwinds, with a 1% improvement over the prior year. All brands exhibited resilience, maintaining steady revenue in EMEA and North America, and achieving nearly 8% growth in APAC. E-commerce continued its upward trajectory with 3% growth, particularly in the US market leveraging the group’s digital platform.

Margin enhancement remained a key focus, with improvements observed across gross profit, contribution profit, and Adjusted EBITDA. Gross margin increased to 59%, contribution profit margin improved to 6%, and Adjusted EBITDA as a percentage of sales rose by 198 basis points from 2022.

Strategic initiatives including brand and product optimization contributed significantly to growth. The Group focused on new product lines, collaborations, and accessories, with Lanvin undergoing a creative transition to align with the Group’s vision for brand evolution.

Efforts to optimize the store network continued, with 36 store closures offset by the successful launch of 24 new retail doors. Improved store strategies led to better unit economics, maintaining DTC revenue despite a reduction in retail doors. Strategic changes implemented since 2022 facilitated significant base growth, including expansion into new markets such as the Middle East with the opening of Lanvin’s first store in Riyadh.

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