Lanvin HY revenues decline 20% amid global luxury slowdown
The group's Adjusted EBITDA decreased from €41m (£34.6m) to a €42m (£35.5m) loss due to effective and timely cost reduction initiatives at the brand level
Lanvin Group, which owns Wolford, Sergio Rossi and Caruso brands, has reported a 20% decline in revenues to €171m (£144.5m) in H1 2024.
DTC channel revenue decreased by 14% and wholesale revenue by 30%. Meanwhile, other revenue growth comprising royalty and clearance income decreased 15% due to Lanvin’s reduction of clearance inventory.
Regional revenue also declined in EMEA by 27% and Greater China at 24% (Asia excluding Greater China decreased by 7%), and North America by 11%.
The group stated that the main drivers of the decline in revenue were global market softness coupled with a struggling wholesale market.
Additionally, Wolford had an integration issue with its new logistics provider which significantly delayed shipments, and Sergio Rossi had a strategically planned reduction in third-party production, both of which also contributed to the revenue decline.
The group’s Adjusted EBITDA decreased from €41m (£34.6m) to a €42m (£35.5m) loss due to effective and timely cost reduction initiatives at the brand level.
Looking ahead, Lanvin expects a “challenging” second half of 2024, but will remain “proactive” in its cost-reduction and operating efficiency efforts.
Lanvin and Sergio Rossi plan to further emphasise marketing initiatives to forge their creative paths for 2025 with the additions of Peter Copping and Paul Andrew, respectively.
Lanvin Group will also continue to focus on revenue expansion opportunities through marketing campaigns to maintain brand momentum and with a “tactical approach” to expand its store network.
Zhen Huang, chairman of Lanvin Group, said: “We faced a tumultuous market in the first half of 2024. While we anticipate this will continue for the near-term, we remain committed to the long-term growth of our Group and our path to profitability.”
Eric Chan, CEO of Lanvin Group, added: “Struggles in the wholesale channel compounded the issues of a softening global luxury market, in the first half of 2024. We spent much of the first half committed to our marketing plan, but also prioritised rationalising our cost base to fit the current market environment.
“Furthermore, we are committed to our product strategy and investing in product development, which is why we are excited to have the new creative leaders who have joined our family. While we will be proactive in our approach to the near-term slowdown, we remain resolute in investing in our brands to forge our path forward, and to capitalise on our momentum as the markets improve.”
