Karl Lagerfeld China Turns Loss into Profit, as Sept Wolves’ Sales Increase 6% YoY in the First Half of the Year

8月 29, 2023

After the closing on August 24th, Chinese menswear group Septwolves (SZ:002029) released its performance report for the first half of 2023. During the reporting period, the company achieved a revenue of 1.54 billion yuan, a 6% increase from the adjusted data of the same period last year. The net profit attributable to the parent company reached 116 million yuan, a significant surge of 74% from the adjusted data of the same period last year.

During the reporting period, the Septwolves main brand collaborated with artists and designers, including partnering with artist Xu Ming to create a collaborative collection for the Year of the Rabbit. They also launched the 2023 Spring-Summer collection and invited Italian supercar designer Aldo Cingolan to collaborate on a supercar jacket.

In recent years, Septwolves has established a development strategy of “industry + investment.” While transforming the main brand, they are striving to build a fashion group through investment and acquisitions.

Septwolves Group acquired the operating rights for the Greater China region of the French luxury fashion brand Karl Lagerfeld for 320 million yuan through its Hong Kong subsidiary in 2017, marking their entry into the international luxury clothing sector.

The financial report also disclosed the latest performance of Karl Lagerfeld China: a 36.7% year-on-year increase in revenue to 170 million yuan in the first half of the year and a net profit turnaround from a loss to a profit of 15 million yuan. From 2018 to 2022, Karl Lagerfeld accumulated losses exceeding 100 million yuan. According to the financial report, Karl Lagerfeld targets urban elites, with product prices ranging from 2,599 to 15,990 yuan, and its primary sales regions are in top-tier cities and provincial capitals.

In September 2022, Septwolves’ subsidiary company E-Shine and the well-known Spanish fashion brand Desigual, renowned for its patchwork designs, established a joint venture. The two parties plan to expand their offline retail network through this cooperation, with the goal of opening 60 self-operated and authorized stores, including two flagship stores—one in Shanghai and one in Beijing.

| Source:Financial Report

| Image Credit: Brand Official

| Editor: LeZhi