Lanvin Group Reports Tepid 2023 Sales, Sees Continued Softness
Lanvin Group, stalled by macroeconomic headwinds and global challenges, saw just 1 percent sales growth last year and expects continued softness in 2024.
The luxury conglomerate, which operates the Lanvin, Wolford, St. John, Sergio Rossi and Caruso brands, reported Wednesday preliminary unaudited 2023 revenues of 426 million euros, compared to revenues of 423 million euros in 2022.
In his statement, Eric Chan, chief executive officer of Lanvin Group, credited his company with “tremendous resilience” and for continuing on its growth trajectory: “2023 was a year full of macroeconomic headwinds and global challenges,” Chan said. “2023 was also a year that our group and our brands proved their ability to manage through adverse market conditions and execute their strategy. A softening second half saw the luxury fashion industry in a position it has not been in, in quite some time. Therefore, I am pleased to report that Lanvin Group maintained growth for the year; and I am confident in our management’s ability to continue to build upon the foundation we have built on our path to profitability.”
Characterizing 2023 as a “transitional year,” the company cited continued improvement in its retail network and expansion of its e-commerce footprint. “Successful product launches and marketing campaigns generated brand heat allowing for resiliency in revenues during a challenging market,” the company said.
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The group continued to rationalize its store footprint with an overall reduction in its store-base by a total of 12 stores. Despite the smaller store base, direct-to-consumer sales remained flat on a like-for-like basis. St. John and Sergio Rossi posted strong store like-for-like growth with 13 percent and 6 percent, respectively.
Lanvin performed better in the second half of the year in spite of the increasingly softening market, the company said. “The brand successfully managed through a year of creative transition, but was impacted by a softer wholesale market. The establishments of the leather goods and accessories department and Lanvin Lab, with the first Lanvin Lab capsule successfully launched in the fourth quarter with Grammy-winning artist Future, started to make positive impacts in the second half and will continue to do so in 2024. While first-half revenue decreased by 11 percent, the brand ended the year down 7 percent.”
With a refocused strategy on their brand and product offerings, St. John grew its direct-to-consumer channel by 7 percent in 2023. Caruso achieved 30 percent growth by continuing to drive its playful elegance approach and expanding its production capacity and specialized workforce.
By region, the group reported that North America grew slightly, while EMEA decreased slightly. In Asia, despite a slow start to the year in China in the first half, Greater China posted 8 percent growth and overall, the APAC region grew 8 percent.
Digital revenue posted a 3 percent year-on-year growth.
