Luxury powerhouse the Lanvin Group found itself navigating a turbulent sea in 2024, as it announced a preliminary revenue decline of 23%, amounting to €328 million. The announcement—made public on a Friday ahead of their detailed earnings report set for April—paints a picture of a brand grappling with industry challenges whilst simultaneously embarking on a creative evolution.
The figures tell a sobering story. The iconic Lanvin brand reported a staggering 26% revenue decrease, totaling €82.7 million. Other labels in the group’s portfolio shared a similar fate; Wolford’s revenue dipped 31% to €87.6 million, while St John saw a 12% dip to €79.2 million. Sergio Rossi experienced an even steeper fall at 30%, bringing in €41.9 million, and Caruso managed to sidestep the worst, with only a 7% drop to €37.1 million. When breaking it down by region, the numbers were equally disheartening: EMEA sales tumbled by 28% to €145.3 million, North America saw a 13% decline at €128.58 million, Greater China fell a staggering 37% to €33.29 million, and the rest of the world decreased by 12% to €20.9 million.
These challenges reflect broader trends in the luxury market, which has been on shaky ground as consumer behaviors shift and global economic pressures mount. The Lanvin Group acknowledged this “softening market” as they work diligently to align operations and maintain agility in an evolving landscape. Their statement highlighted a commitment to long-term prospects, indicating proactive efforts to optimize their retail network and boost operational efficiency.
Diving deeper into the revenue figures, they also underscored a sharp decline in sales through both direct-to-consumer channels—down 19% to just over €200 million—and wholesale, which fell 28% to €115.8 million. Even other revenue sources weren’t spared, plummeting 31% to just over €12 million.
While the general outlook may seem bleak, some segments within the group exhibited resilience. St John and Caruso, despite seeing revenue decreases, emerged stable, thanks to the loyalty of their customers and their strong market positioning. However, Wolford faced significant hardship, grappling with logistical challenges amidst a broader macroeconomic downturn.
Lanvin and Sergio Rossi, on the other hand, despite the revenue declines, appear poised for a creative rebirth. The two brands are embracing a bold vision to redefine their artistic pathways and instigate future growth. The group’s report indicates that certain areas, particularly Japan and North America, have maintained a steadiness amidst market shifts, showcasing solid brand equity.
Looking ahead, the Lanvin Group aims to establish 2025 as a pivotal year for revitalization and development. With new executive leadership under Andy Lew and an emphasis on strengthening creative direction—showcased in the buzz surrounding Peter Copping’s recent runway debut for Lanvin—the company is banking on a reinvigorated portfolio that resonates with customers in an ever-evolving luxury market.
The road ahead is filled with both challenges and opportunities. While the landscape is shifting and rife with competition, the Lanvin Group remains determined to navigate these changes. By consolidating its store network and focusing on its core brands—alongside fresh creative visions—they’re striving not just to weather the storm but to emerge stronger. In the luxury world, that determination—a mix of agility and creativity—is crucial to not just survive but thrive in a dynamic environment.
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