Lanvin Group, a global fashion luxury group listed on the NYSE under the ticker LANV, announced its preliminary annual report for the year ending December 2023: Sales increased by 1% year-on-year to €426 million. Despite challenging market conditions, the group achieved an 8% growth in sales in both the Greater China region and the Asia-Pacific market.
The brands under Lanvin Group include Lanvin, Wolford, Sergio Rossi, St. John, and Caruso.
Despite a weaker market environment in the second half of 2023, the transformational year for Lanvin Group saw overall growth, benefiting from an improved retail network and a more extensive e-commerce layout. Additionally, successful product launches and marketing campaigns increased brand popularity, maintaining resilience in a challenging market.
As of the close of trading on February 20, Eastern Time, Lanvin Group’s stock price was $2.02/share, with a market capitalization of $265 million.
One of the highlights of the year was the rationalization of the store network. In 2023, the group gradually optimized its store layout, closing a total of 12 stores. Although the number of physical stores declined, the group’s direct sales remained flat compared to the previous year. St. John (+13%) and Sergio Rossi (+6%) saw strong growth in comparable store sales.
In terms of e-commerce, the group maintained growth in 2023, with a 3% increase year-on-year. St. John’s online sales grew by 14%, Sergio Rossi’s by 5%, while Lanvin and Wolford remained flat compared to the previous year.
In 2023, Lanvin Group continued to transition towards core and accessory products, focusing on specific products and categories to enhance the stability and resilience of sales and profitability.
Lanvin’s sales decreased by 11% in the first half of the fiscal year but improved in the second half, ending the year with a 7% decrease compared to the previous year. The brand successfully navigated a year of creative transformation but was affected by a weak wholesale market. The newly established leather goods and accessories department and Lanvin Lab had a positive impact from the second half of the year, with Lanvin Lab launching its first capsule collection in collaboration with Future in the fourth quarter. Lanvin Group noted that this positive impact is expected to continue into the current fiscal year 2024.
St. John adjusted its brand and product strategy, driving a 7% increase in direct sales in 2023. Caruso continued to expand its playful and elegant style, along with increased capacity and expertise, leading to a 30% increase in sales year-on-year.
By geographic market, sales in North America and EMEA (Europe, the Middle East, and Africa) were stable, while the Asia-Pacific market overcame economic challenges to achieve an 8% increase in sales. In Asia, despite a slow start in the first half of the fiscal year, the Greater China market still saw an 8% increase in sales for the year.
Eric Chan, the CEO appointed in December, stated, “2023 was a year full of macroeconomic headwinds and global challenges. 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.”
Brand profitability:
- Lanvin: Sales decreased by 7% year-on-year to €112 million.
- Wolford: Sales increased by 1% year-on-year to €127 million. In the Asia-Pacific market, sales increased by 32% year-on-year at constant exchange rates, and sales in the North American market increased by 2%. Sales in the South American market declined, mainly due to current exchange rate impacts. Additionally, due to the adverse impact of the macroeconomy, sales in the EMEA (Europe, the Middle East, and Africa) market also declined. Wholesale sales increased by 12% year-on-year, benefiting from the product adjustment strategy of new creative director Nao Takekoshi and the acquisition of new wholesale customers.
- St. John: Sales increased by 5% year-on-year to €90.394 million.
- Sergio Rossi: Sales decreased by 4% year-on-year to €59.518 million.
- Caruso: Sales increased by 30% year-on-year to €40.041 million.
By geographic market:
- EMEA market sales decreased by 2% year-on-year to €202 million.
- North American market sales increased by 1% year-on-year to €147 million.
- Greater China market sales increased by 8% year-on-year to €52.823 million.
- Other markets’ sales increased by 8% year-on-year to €23.886 million.
By sales channel:
- Direct/e-commerce sales remained flat year-on-year at €247 million.
- Wholesale sales decreased by 1% year-on-year to €162 million.
- Other sales increased by 68% year-on-year to €17.573 million.
Looking forward to 2024, Lanvin Group stated that despite the ongoing weakness in the global market negatively impacting the business, better regional economic performance would lead to growth plans, with opportunities to expand market share in the Asia-Pacific market. “In 2024, we will seek tactical growth opportunities, and at the group and brand level, we will continue to implement strategies to enhance profitability.”
| Source: Official financial report
| Image Credit: Brand official website
丨Reporter：Jiang Jingjin
| Editor: LeZhi
