Lanvin Group Demonstrates Strong Resilience in 2023 with a 1% Year-on-Year Increase in Preliminary Revenues

Lanvin Group (NYSE: LANV), a prominent global luxury fashion conglomerate encompassing renowned brands such as Lanvin, Wolford, St. John, Sergio Rossi, and Caruso, disclosed its preliminary, unaudited revenues for the entirety of 2023. The Group achieved a noteworthy milestone with revenues totaling €426 million, marking a 1% increase compared to the preceding year, 2022.

Eric Chan, the CEO of Lanvin Group, shared insights into the challenges faced in 2023, marked by macroeconomic headwinds and global adversities. Despite these hurdles, Lanvin Group exhibited remarkable resilience and sustained its growth trajectory throughout the year. Chan emphasized the year as a testament to the group’s and its brands’ capabilities to navigate adverse market conditions and execute strategic plans. Notably, the luxury fashion industry witnessed a softening in the second half, an unusual occurrence, but Lanvin Group remained on a growth trajectory, reporting a 1% year-on-year increase in revenues.

Chan expressed confidence in the management’s proficiency to build upon the foundation laid for profitability. The Group’s success amidst a challenging market was attributed to strategic measures, including enhancing the retail network and expanding the e-commerce footprint. Successful product launches and effective marketing campaigns contributed to brand resilience and revenue stability.

The Group strategically rationalized its store network, resulting in a reduction of 12 stores overall. Despite this reduction, direct-to-consumer (DTC) sales across the Group remained flat on a like-for-like basis. St. John and Sergio Rossi notably achieved strong store like-for-like growth with 13% and 6%, respectively.

The Lanvin brand demonstrated improved results in the second half of the year, overcoming the challenges posed by a softening wholesale market. Initiatives such as the establishment of the Leather Goods and Accessories department and Lanvin Lab, with a successful Lanvin Lab capsule launch featuring Grammy-winning artist Future in Q4, contributed positively. Although first-half revenue declined by 11%, the brand concluded the year with a 7% decrease.

Despite economic challenges, North America and EMEA exhibited stability, with slight growth in North America and a marginal decrease in EMEA. In the APAC region, despite a slow start in China during the first half, Greater China reported 8% growth, contributing to an overall 8% growth in the APAC region.

The Group maintained its focus on transitioning to core products and accessories to enhance stability and resilience in revenue and profitability. St. John recorded a 7% growth in its DTC channel in 2023, while Caruso achieved an impressive 30% growth in global revenue by expanding production capacity and its specialized workforce.

The e-commerce segment continued its upward trajectory, with the Group’s overall e-commerce revenue posting a 3% year-on-year growth. St. John and Sergio Rossi excelled in this domain, showing 14% and 5% growth, respectively, while Lanvin and Wolford remained steady throughout the year.

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