Dive Brief:
- Lanvin Group’s 2024 outlook, released Tuesday, stated that although the “macroeconomy remains uncertain,” it expected regions such as North America to remain steady and regions such as the Middle East to present “significant growth opportunities.”
- The company noted that its Caruso brand achieved an adjusted EBITDA breakeven in 2023, and predicted that two of its other brands are expected to hit that mark in 2024, although it did not specify which brands.
- Lanvin Group also confirmed its previously reported fiscal 2023 revenue, which rose 1% to 426 million euros, or approximately $461 million. The company only reports on an actual currency exchange rate basis. In fiscal 2023, the EMEA region saw a 2% drop in revenue, while North America dropped 1% year over year. Revenue was down in 2023 for its namesake Lanvin brand and its Sergio Rossi brand, and up 1% for Wolford, while St. John saw 5% growth for the year.
Dive Insight:
While Lanvin Group has not seen the same growth as competitors such as Zegna and Prada, it has also not been hit with the same luxury sector headwinds that have affected Kering.
Zhen Huang, the group’s chairman, said in Tuesday’s release that the company had “made significant progress since its inception in 2018.”
“In reviewing our 2023, I thought back to the resiliency we showed during the pandemic, posting growth every year, and I see the same resilience and our ability to thrive in any environment, this past year,” Huang said. “I believe we are on the right track and am optimistic we will reach our growth and profitability goals.”
The company said “much of the legwork of streamlining the organization” has been completed, per the release, and that it “sees scale expansion as a key driver of profitability, for 2024 and beyond.” It added that “one of the Group's focuses in 2024 will be the continued development of its eco-system with additional strategic partners that will facilitate regional growth, improve logistics and expand product categories.”
However, its flagship brand has not had a permanent creative director since the April 2023 departure of Bruno Sialelli, although the house launched a Lanvin Lab collaboration designed with musician Future in June 2023.
“Managers drive companies, and their teams drive results,” Eric Chan, CEO, said in the release. “I am thoroughly impressed by the efforts of our managers and our teams to maintain growth and continue to forge the path to profitability in a challenging market environment…We are a group of brands with a provenance and heritage second-to-none, and I am proud of what we have accomplished in 2023. We are collectively on a journey, and I am very optimistic about our future.”
Chan and Huang both took on their current executive positions following the December departure of Joann Cheng, Lanvin Group’s founding chairman and CEO.
