Lanvin Group faces a 23% revenue drop in fiscal year 2024, as it navigates a transitional year marked by strategic realignment and global market pressures.
Lanvin Group, a luxury fashion conglomerate whose brand portfolio includes Lanvin, Wolford, St. John, Sergio Rossi, and Caruso, has reported preliminary revenues of €328 million for the fiscal year 2024, representing a significant decline of 23% compared to the previous year. This downturn reflects what the company describes as a transitional year, characterized by strategic realignment and challenges within the global luxury market.
The revenue drop is echoed across nearly all of Lanvin’s brands. For instance, Lanvin itself saw revenues fall by 26%, while Wolford and Sergio Rossi experienced decreases of 31% and 30% respectively. St. John and Caruso were somewhat more resilient, showing declines of 12% and 7%. This broad decrease illustrates the impact of external market pressures, including logistical disruptions and an overall economic downturn.
The Group’s performance varied significantly by region. According to their report, the EMEA (Europe, the Middle East, and Africa) region suffered a substantial decline in wholesale purchases, which impacted multiple brands including Lanvin and Sergio Rossi. Conversely, the North American and Japanese markets displayed stronger resilience, helping offset softer demand in Greater China, where revenues dropped by 37%.
Looking ahead, Lanvin Group aims to reposition itself for future growth. The company is poised to enhance its management capabilities with the appointment of a new Executive President, Andy Lew. They are also in the process of consolidating their retail footprint to focus on core business areas, which is expected to strengthen decision-making efficiency and local presence. The appointment of new artistic directors for Lanvin and Sergio Rossi is anticipated to inject fresh creativity into the brands, with the first showcase from Lanvin’s new Artistic Director, Peter Copping, already garnering positive responses.
The company is optimistic about its prospects in 2025 despite the challenging macroeconomic environment. With bold creative initiatives and a strengthened leadership team, Lanvin Group is working to rejuvenate its brand portfolio and set itself on a path of sustainable growth.
The Lanvin Group plans to discuss these results further during a conference call, which is available for pre-registration, with an earnings release expected in April 2025.
Source: Noah Wire Services
