Lanvin Group might have drummed up some creative excitement with key hires at Lanvin and Sergio Rossi, but the company’s financial results showed the strain of what was described as a “transitional year.”
Revenues fell 23 percent to 329 million euros last year.
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And while a mix of pricing discipline, higher direct-to-consumer sales and inventory management helped hold gross profit margins at 56 percent, down only slightly from 59 percent, it wasn’t enough to save the bottom line.
Losses widened to 189.3 million euros from 146.3 million euros a year earlier. Adjusted losses before interest, taxes, depreciation and amortization widened to $92.3 million from $64.2 million.
But some of that represents organizational and operational changes at the company, which also owns Wolford, St. John and Caruso.
David Chan, executive president and chief financial officer of Lanvin Group, said on a conference call that those adjusted losses included 14 million euros to 18 million euros to integrate Wolford’s logistics as well as 5 million euros to 10 million euros for the company’s “creative transition.”
Without those costs, adjusted EBITDA losses were consistent with 2023 results.
The company certainly has been busy.
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Veteran designer Peter Copping became artistic director of the Lanvin brand in September.
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Paul Andrew was named creative director of Sergio Rossi in July.
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And St. John Knits’ chief executive officer Andy Lew was named executive president of the whole group in January.
“Financially, Lanvin demonstrated remarkable resilience,” said Lew on the call. “Despite market pressures, we maintained a stable gross profit margin through disciplined cost control and inventory optimization.
“We’re building a dynamic leadership team, combining industry veterans and fresh perspectives to foster innovation and rapid decision making,” he said. “Our new European headquarters based in Milan will enhance regional oversight, streamline operation and traction relationships with key stakeholders.”
The company will also continue to optimize its store base and work to reduce working capital.
“As we enter 2025, we do so with optimism,” Lew said. “Peter Copping’s new collection, Wolford’s [75th] anniversary and Paul Andrew’s vision for Sergio Rossi are just the beginning. With a revitalized team we’re poised to turn this pivotal moment into growth.”
Lanvin raised more than $150 million in cash going public in a SPAC deal in late 2022.
