Dive Brief:
- Lanvin Group reported preliminary, unaudited revenue of 426 million euros for fiscal 2023, or approximately $461 million at current exchange rates, representing a 1% year-over-year increase over its audited 2022 figures, according to a Wednesday press release.
- The company, which only reports on an actual currency exchange rate basis, said that revenue in the APAC region grew 8% “[d]espite challenging conditions,” and additionally said revenue increased 8% and 1% in China and North America, respectively. There was a 2% drop in EMEA revenue.
- The company’s flagship Lanvin brand saw a 7% revenue decline for fiscal 2023, including an 11% decline in the first half of the year. The Caruso brand saw a 30% global revenue rise for the year due in part to “expanding its production capacity.” Meanwhile, St. John saw 5% growth, Wolford revenue rose 1%, and Sergio Rossi, which appointed a new CEO in December, was down 4%.
Dive Insight:
Lanvin Group has struggled to keep pace with some of its luxury competitors ever since the departure of Alber Elbaz, who had served as Lanvin’s creative director for 14 years until 2015, and who died in April 2021.
After years of declining sales, the company’s flagship house Lanvin, founded in France in 1889, was purchased by China-based Fosun International in 2018, which rebranded as Lanvin Group later that year.
The Lanvin brand has been without a creative director since the April 2023 departure of Bruno Sialelli, although in June it released a Lanvin Lab collection designed in collaboration with musician Future.
In fiscal 2023, the company closed 12 stores globally, while DTC sales remained flat, per the earnings release. St. John saw a 7% DTC channel growth, and store like-for-like growth for both the St. John and Sergio Rossi brands was up 13% and 6%, respectively.
“2023 was a year full of macroeconomic headwinds and global challenges,” CEO Eric Chan said in the release. “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. 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.”
Chan became Lanvin Group CEO following the December departure of Joann Cheng, Lanvin Group’s founding chairman and CEO. Chan had previously been co-chairman of Fosun Group subsidiary Greater Yuyuan Commercial Development Group. When Cheng exited, Huang Zhen, director of Fosun Group and executive director and executive president at Fosun International, was appointed as chairman of Lanvin Group.
