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Lanvin Group said preliminary revenues for 2023 rose 1 per cent to €426 million, as a softening demand for luxury stumped growth, the group announced on Wednesday. Shares were flat on Wednesday afternoon.
“We did see a decrease in revenue from the first half to the second half of the year, which aligned with a general softening of the macroeconomics,” CFO David Chan said on a call with investors. Lanvin Group — owner of Lanvin, Wolford, St John, Sergio Rossi and Caruso — joins a number of luxury conglomerates struggling to navigate the luxury slowdown. Companies such as Ferragamo, who blamed falling sales on luxury’s decline, are struggling to meet sales targets as appetite continues to lessen following a post-pandemic boom.
Flagship brand Lanvin saw the biggest decline, with revenues falling 7 per cent from €119.8 million to €111.7 million in 2022. CEO Eric Chan said Lanvin’s strategy and creative direction is a key focus this year as it looks to reinstate the brand’s DNA. It’s been a challenging area for the business, following the departure of Bruno Sialelli in April. In November, American rapper Future unveiled his latest collection for Lanvin Lab, which received mixed responses with many confused by the partnership.
A permanent replacement for Sialelli is expected to be announced imminently.
2023 was a transitional year for the brand, marking a new change in creative direction, said Chan. “For 2024, with a new artistic director in place, the brand will look to expand regionally, in particular North America and the Middle East, as well as continuous expansion of its product categories assortment to fully drive demographic expansion, with emphasis on higher margin leather goods and accessories.”
Sergio Rossi revenues fell 4 per cent to €59.5 million in 2022; St John, the American luxury brand, saw revenues increase 5 per cent to €90 million; and heritage Italian label Caruso, experienced the biggest growth with revenues surging 30 per cent to €40 million. Wolford emerged as the group’s main revenue driver in 2023, with sales increasing 1 per cent to €127 million in 2022.
By region, EMEA accounted for 47 per cent of the group’s total revenue, down 2 per cent year-on-year to €202 million; revenues in North America rose 1 per cent to €147 million and accounted for 35 per cent; meanwhile, APAC contributed 18 per cent with the region and China growing 8 per cent to €53 million and €24 million, respectively, the group said.
“Lanvin Group showed tremendous resilience and continued on its growth trajectory. 2023 was also a year that our group and our brands proved their ability to manage through adverse market conditions and execute their strategy,” CEO Chan said in a statement. “I am confident in our management’s ability to continue to build upon the foundation we have built on our path to profitability.”
Correction: Updated to remove erroneous reference to the Indian market (04/03/24)
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