Lanvin Group’s full-year results came out on Wednesday following the earlier release of its revenue figures and the company said its profits dropped on the back of its overall sales fall.
Total company revenue (reported back in February) had dropped by 23% to €328.6 million. Lanvin revenue was down 26% at €82.7 million with Wolford down 30% at €87.9 million. St John fell 12% to €79 million, Sergio Rossi fell 30% to €41.9 million and Caruso dropped 7% to €37 million.
That all meant the firm’s gross profit decreased to €183 million, reflecting a margin of 56%, compared to €251 million in 2023 with a margin of 59%. The decline in gross profit was primarily attributed to a drop at Wolford with increased costs related to its new logistics provider. Overall, the group said it managed to “maintain a relatively stable gross margin, which indicates effective cost control and inventory management”.
Total contribution profit for the group fell from €24.2 million a year earlier to a loss of €26 million this time with a negative margin of 8%. The metric is defined as gross profit less selling and marketing expenses with the decline primarily driven by lower gross profit due to reduced sales volumes, “especially at Wolford”. But the group has shown “steady progress in managing its fixed expenses over the past few years,” it said.
Meanwhile, adjusted EBITDA widened from a loss of €64.17 million to one of €92.32 million. While the group made significant efforts to optimise its cost structure and enhance operational efficiency in FY24, the bigger adjusted EBITDA loss was primarily the result of that decline in gross profit, which was only partially mitigated by the reduction in operational expenses.
But while Wolford was largely blamed for the profit woes, other profit and loss metrics didn’t look great for the wider basket of its labels with even profitable brands moving in the wrong direction.
Looking at the numbers by brand, Lanvin gross profit decreased to €48 million at a margin of 59%, from €65 million at a margin of 58% in 2023. Its contribution profit fell to a loss of €24 million in 2024, with the margin declining to negative 29% from negative 11% in 2023. Despite the reduction in retail traffic, effective cost controls are in place and inventory management showed steady improvement, it said in mitigation.
Wolford gross profit dropped to €51 million from €83 million in 2023, and the margin declined from 66% to 58% due to increased costs caused by the aforementioned delays in integrating with the new logistics provider. Contribution profit turned to a loss of €19 million in 2024, with the margin falling to negative 21% from 3%.
There were fewer specific monetary figures for Sergio Rossi but the company said the gross profit margin decreased from 51% to 43% in 2024, due to fixed production costs on lower revenues. The contribution profit margin dropped to negative 3% in 2024, compared to 12% in 2023. Marketing and selling expenses decreased €4 million as a result of cost control and the implementation of efficiency improvement measures, partially offsetting the loss in gross profit.
At St John meanwhile, gross profit fell to €54 million, but with the margin improving to 69% from 63% in 2023, due to improved full-price sell-through and reduction in production costs. Contribution profit decreased slightly, with the margin dropping by 2%.
Caruso’s gross profit remained stable at €11 million, with the margin increasing to 29% from 28% in 2023. The contribution profit margin also remained steady at 24%.
So there are clearly plenty of challenging figures in the report. But the company was at pains to point out the positives. It said it was “resilient in key regions and key channels”. North America and Japan outperformed other regions, helped by the strength of St John and Sergio Rossi, even though EMEA and Greater China saw declines “due to challenges within the luxury industry”.
The group’s focus was on “optimising its retail footprint and concentrating on core business units” and DTC channels also “remained resilient, accounting for 61% of total sales, highlighting the effectiveness of the store optimisation and market-focused strategy”.
It has “optimised” underperforming stores and selectively opened new retail locations with Lanvin and Sergio Rossi “successfully” expanding their presence in the Middle East.
As for 2025, while macroeconomic uncertainty persists, Lanvin Group said it’s “poised for a robust recovery and remains unwavering in its long-term vision, driven by operational discipline and a surge in creative momentum. Under the leadership of the new executive president, Andy Lew, the group is enhancing its management capabilities and establishing a second headquarters in Europe to further streamline the organisation”.
It will continue to “maintain a strategic focus on key areas and core products, while exploring undiscovered regions and emerging product categories to unlock new growth opportunities. Retail network optimisation will continue to be a priority, with efforts to refine the store footprint, simplify the operations and concentrate on core business units”.
The company also said it’s “experiencing a surge of creative momentum in 2025, fuelled by the appointment of new creative leaders who are poised to redefine the brand visions”. At Lanvin that means Peter Copping and at Sergio Rossi it’s Paul Andrew.
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