Dive Brief:
- Lanvin Group posted 328 million euro of revenue in fiscal 2024, or about $342 million, representing a 23% year-over-year decrease, according to a Friday earnings release.
- The company, whose portfolio includes its namesake label as well as Wolford, St. John, Sergio Rossi and Caruso, saw year-over-year revenue declines at every brand, and in every region it serves. As a result, the company said it has “proactively consolidated its store network, focusing on core business units and optimizing its retail footprint.”
- Lanvin Group recently announced that CEO Eric Chan would step down and a replacement has not been named. At the same time, Andy Lew, previously CEO of St. John, has been named executive president and will helm a second company headquarters in Europe.
Dive Insight:
Lanvin Group’s challenges mirror similar problems throughout the luxury sector. A recent report from McKinsey said these issues were likely to continue through at least 2027.
However, not all companies have been impacted by luxury’s downturn. While some firms, such as Kering and LVMH, posted year-over-year decreases for fiscal 2024, others, including Hermès and Ralph Lauren, have avoided that narrative with strong earnings reports in February..
Lanvin Group attributed its fiscal 2024 revenue struggles to “a transitional year marked by creative evolution and strategic realignment amid market headwinds,” per the release.
Wolford, the company’s biggest brand by revenue, was hit the hardest with a 31% year-over-year decline. The company attributed the decrease to “temporary disruptions in logistics” as well as an overall macroeconomic downturn, per the release.
Sergio Rossi, which appointed a new creative director last year, posted a 30% year-over-year decline, while the Lanvin brand, which also named a new creative director in 2024, posted a 26% decline.
In the release, the company said that despite larger industry headwinds throughout the fiscal year, both brands “embraced bold creative renewal, setting the stage to redefine their artistic visions and chart a course toward future growth.”
At St. John and Caruso, revenue fell 12% and 7% respectively, which the company said demonstrated “the strength of their loyal customer base.” St. John announced a new chief commercial officer and chief merchandising officer earlier this week.
By region, China was the company’s biggest disappointment. Revenue there fell 37% for the year, and the company said in the release that it has “implemented targeted strategies to reignite growth in this key market.”
In the region comprising Europe, the Middle East and Africa, revenue fell 28% due to a decline in wholesale that particularly affected the Lanvin and Sergio Rossi brands. North America posted a 13% decline, and the combined revenue decrease for Lanvin Group’s other regions was 12%.
The company did not release revenue projections for 2025, but indicated a positive outlook for the year ahead. “Through a strengthened leadership team, strategic retail optimization, and bold creative visions, Lanvin Group is poised to drive innovation and growth, positioning itself for long-term success in the luxury fashion industry,” Lanvin Group said in the release.
