Lanvin Group Demonstrates Strategic Resilience in Challenging Luxury Market, Lays Foundation for Future Growth

PR Newswire

NEW YORK, April 30, 2025

   -- The Group reported revenue of EUR329 million in FY2024, down 23% over 
      FY2023, reflecting a transitional year marked by creative evolution and 
      strategic realignment amid market headwinds 
 
   -- Gross profit margin remained stable at 56%, supported by disciplined 
      pricing, a higher mix of DTC sales, and improved inventory management 
 
   -- Operational efficiency improved, with G&A expenses reduced by 15% and 
      working capital turnover showing steady progress 
 
   -- Strategic store optimization continued, with disciplined new retail 
      openings and underperforming locations consolidation, reinforcing the 
      Group's focus on core and high-potential markets 
 
   -- Sustained performance in Japan and North America contrasts with EMEA and 
      Greater China, where proactive adjustments made to address dynamic market 
      shifts 
 
   -- 2025 stands as a pivotal milestone, where the Group's sharpened 
      leadership and visionary creativity unlock fresh momentum across its 
      portfolio, setting the stage for dynamic renewal and long-term growth 

NEW YORK, April 30, 2025 /PRNewswire/ -- Lanvin Group (NYSE: LANV, the "Group"), a global luxury fashion group with Lanvin, Wolford, Sergio Rossi, St. John and Caruso in its portfolio of brands, today announced its results for the full-year 2024. The Group achieved revenue of EUR329 million, a 23% decrease year-over-year versus 2023; and gross profit of EUR183 million, representing a relatively stable gross margin of 56%.

Zhen Huang, Chairman of Lanvin Group, said: "2024 was a year of transformation for Lanvin Group. While market conditions were challenging, we made critical strides in strengthening our brands, optimizing our operations, and laying the groundwork for future growth. With our renewed creative leadership and disciplined execution, we are confident in our ability to navigate the evolving luxury landscape and deliver long-term value."

Review of the Full-Year 2024 Results

 
Lanvin Group Revenue by Segment 
(EUR in Thousands, unless otherwise noted) 
 
                            Revenue                         Growth % 
-------------  ----------------------------------  --------------------------- 
                                                   2022 A 
                2021A    2022A    2023A    2024A      v     2023 A v  2024 A v 
               -------  -------  -------  ------- 
Lanvin Group 
 by Brand        FY       FY       FY       FY     2021 A   2022 A    2023 A 
-------------  -------  -------  -------  -------  -------  --------  -------- 
 
Lanvin          72,872  119,847  111,740   82,720     64 %      -7 %     -26 % 
Wolford        109,332  125,514  126,280   87,891     15 %       1 %     -30 % 
St. John        73,094   85,884   90,398   79,267     17 %       5 %     -12 % 
Sergio Rossi    28,737   61,929   59,518   41,910    116 %      -4 %     -30 % 
Caruso          24,695   30,819   40,011   37,107     25 %      30 %      -7 % 
-------------  -------  -------  -------  ------- 
 Total Brand   308,730  423,993  427,947  328,895     37 %       1 %     -23 % 
 
Eliminations        92   -1,681   -1,769     -285  -1927 %       5 %     -84 % 
               -------  -------  -------  ------- 
 Total Group   308,822  422,312  426,178  328,610     37 %       1 %     -23 % 
 
 
Lanvin Group Key Financials 
(EUR in Thousands, unless otherwise noted) 
 
                    2021A           2022A           2023A           2024A 
--------------  --------------  --------------  --------------  -------------- 
Lanvin Group 
Key 
Financials        FY       %      FY       %      FY       %      FY       % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
 
Revenue         308,822  100 %  422,312  100 %  426,178  100 %  328,610  100 % 
Gross profit    169,902   55 %  237,944   56 %  250,942   59 %  182,763   56 % 
Contribution 
 profit(1)        4,400    1 %   13,211    3 %   24,192    6 %  -26,040   -8 % 
Adjusted 
 EBITDA         -58,945  -19 %  -71,958  -17 %  -64,173  -15 %  -92,320  -28 % 
 

Selected Highlights

Resilient in key regions and key channels: North America and Japan outperformed other regions, contributed by the strong presence of St. John and Sergio Rossi. EMEA and Greater China experienced declines due to challenges within the luxury industry. Despite the Group's focus on optimizing its retail footprint and concentrating on core business units, DTC channels remained resilient, accounting for 61% of total sales, highlighting the effectiveness of the store optimization and market-focused strategy by the Group.

Strong improvement in working capital: Effective management of working capital in FY2024. G&A expenses were reduced by 15%, while improvements in receivables turnover and inventory management contributed to a stronger cash flow position and enhanced operational efficiency. Meanwhile, marketing and selling expenses saw a slight decrease of 8%, as targeted marketing activities were implemented.

Retail network optimization: Lanvin Group continued to optimize its retail footprint by optimizing underperforming stores and selectively opening new retail locations. Lanvin and Sergio Rossi successfully expanded their presence in the Middle East.

Brands with strategic adaptation: The Group's diversified brand portfolio exhibited varying levels of resilience in 2024. St. John and Caruso remained stable, underscoring the strength of their loyal customer bases and distinct market positions. Despite facing industry-wide challenges, Lanvin and Sergio Rossi embraced bold creative renewal, positioning themselves to redefine their artistic visions and pave the way for future growth.

Discussion of FY2024 Financials

Revenue

For FY2024, the Group generated revenue of EUR329 million, a 23% decrease year-over-year. Specifically, EMEA wholesale and Greater China retail market experienced softer demand, in line with the market trend since first half of 2024. This decline was driven by a combination of macroeconomic headwinds, shifts in consumer behavior, and strategic realignments. Full details of the Group's revenue can be found in our Annual Report on Form 20-F for the year ended December 31, 2024.

Gross Profit

Gross profit decreased to EUR183 million, reflecting a margin of 56%, compared to EUR251 million in 2023 with a margin of 59%. The decline in gross profit is primarily attributed to a drop in gross profit from Wolford with increased costs related to the new logistics provider. Overall, the Group has managed to maintain a relatively stable gross margin, which indicates effective cost control and inventory management.

Contribution Profit(1)

Contribution profit, defined internally as gross profit less selling and marketing expenses, was used to understand the variable profitability performance and analyze performance across our brands. In FY2024, contribution profit amounted to negative EUR26 million, representing a margin of -8%, a drop from the EUR24 million contribution profit in 2023. The decline was primarily driven by lower gross profit due to reduced sales volumes, especially in Wolford. Despite this, the Group has shown steady progress in managing its fixed expenses over the past few years.

Adjusted EBITDA

Adjusted EBITDA remained at loss for FY2024, reaching EUR-92 million, compared to EUR-64 million in 2023. While the Group has made significant efforts to optimize the cost structure and enhance operational efficiency in FY2024, the increase in Adjusted EBITDA loss was primarily driven by a decline in gross profit, which was only partially mitigated by the reduction in operational expenses.

Results by Segment

Lanvin: Revenue was down by 26%, with revenue of EUR83 million. Gross profit decreased to EUR48 million, at a margin of 59%, from EUR65 million, at a margin of 58%, in 2023. Gross profit declined due to lower sales volumes, while the margin remained stable. Contribution profit decreased to a loss of EUR24 million in 2024, with margin declining to negative 29% from negative 11% in 2023. Despite the reduction in retail traffic, effective cost controls are in place and inventory management showed steady improvement.

Wolford: Revenue decreased by 30%, decreasing from EUR126 million in 2023 to EUR88 million in 2024, a result of multiple challenges faced in 2024 such as macroeconomic uncertainties, organizational changes, and disruptions in logistics. Gross profit decreased to EUR51 million from EUR83 million in 2023, and margin declined from 66% to 58% due to increased costs caused by delays in integrating with the new logistics provider. Contribution profit turned negative, reaching EUR-19 million in 2024, with the margin falling to negative 21% from 3%.

Sergio Rossi: Revenue was down by 30%, decreasing from EUR60 million in 2023 to EUR42 million in 2024. Gross profit margin decreased from 51% to 43% in 2024, due to fixed production costs on lower revenues. Contribution profit margin dropped to negative 3% in 2024, compared to 12% in 2023. Marketing and selling expenses decreased EUR4 million as a result of cost control and the implementation of efficiency improvement measures, partially offsetting the loss in gross profit.

St. John: Driven by the decline in luxury demand in North America and the strategic contraction in Greater China, St. John's revenue in 2024 decreased by 12%, from EUR90 million in 2023 to EUR79 million. Gross profit decreased to EUR54 million, with the margin improving to 69% from 63% in 2023, due to improved full-price sell-through and reduction in production costs. Contribution profit decreased slightly, with the margin dropping by 2%.

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