Lanvin Group Eyes Bounceback, to Name Artistic Director
After sputtering in the first half, Lanvin Group’s flagship brand is poised for a bounce back, with several key product initiatives — and plans to reveal a new artistic director in the coming months.
“With trends in Greater China and the U.S. improving, we expect a stronger second-half performance as our strategic plans begin to accelerate Lanvin’s revenue growth,” David Chan, executive president and interim chief financial officer, told a conference call Wednesday as the Shanghai-based luxury group reported revenues advanced 6.4 percent in the first half to 214.5 million euros, dented by a 10.8 percent dip at Lanvin.
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A collection of ready-to-wear and accessories for men and women by rapper Future, the first guest creative at Lanvin Lab, headlines product volleys planned for later in the year. Lab is billed as a new “experimental space” for the French house.
A relaunch of Lanvin’s “iconic ballerina” shoe, a staple of the Alber Elbaz glory years, and a seasonless eveningwear and special-occasion capsule are among other initiatives in the pipeline, added Siddhartha Shukla, deputy general manager of Lanvin.
Seizing on buoyancy in Greater China, leveraging VIPs and influencers, and delivering “next generation products and marketing” based on a “close examination of our customer profiles” are among other strategic thrusts, he added.
Lanvin executives mentioned the search for a new artistic director to oversee its men’s and women’s runway and pre-collections, but provided no details.
Market sources told WWD that Lanvin has held discussions with an array of candidate profiles, including emerging talent Veronica Leoni of Quira; Ilaria Icardi, a prominent number two, and seasoned creatives like Kris Van Assche, who has helmed Dior Homme and Berluti.
In April, Lanvin parted ways with its creative director Bruno Sialelli, built dedicated teams for leather goods and accessories, and established Lanvin Lab to “balance the casual offer with a new sophistication,” according to Shukla.
It is understood Shukla is curating the Lab initiative, which could extend to events or happenings, and is not tethered to product collaborations.
In contrast to Lanvin’s wobbles, revenues gained 33.6 percent at Caruso, buoyed by the “quiet luxury” trend, according to Chan. Meanwhile, sales gained 22.4 percent at Sergio Rossi, 11.3 percent at St. John and 8.4 percent at Wolford.
Wolford’s revenues in the half came in at 58.8 million euros, a nose ahead of Lanvin at 57 million euros.
The Austrian bodywear firm grew 46.7 percent in Greater China, 10.3 percent in North America and 4.9 percent in EMEA. The brand’s new chief executive officer Silvia Azzali touted a new Ultimate Leggings project devised to catapult the much-maligned garment into a new zone where “fitting and comfort will meet esthetics. This is gonna be really, really big.”
Lanvin Group, which debuted on the New York Stock Exchange last December, trumpeted growth across all channels and geographies, with Greater China advancing 13.9 percent, EMEA improving 5.3 percent, and North America inching up 2.6 percent.
Joann Cheng, chairman and CEO of Lanvin Group, told the conference call that the company’s focus would be on “driving growth and margin improvements.”
She noted “several strategic reorganization decisions with respect to Lanvin…had an expected short-term impact in the first half of 2023. We believe we have now placed Lanvin in a much stronger position.”
The promise is to “drive brand heat more consistently going forward” at Lanvin.
The release noted that Lanvin reacquired its Japan trademarks from its longtime partner Itochu Corp. last March, which will now become its exclusive licensee and distributor.
Cheng also highlighted “stronger trends in Greater China” and said the group is “optimistic in North America for the remainder of this year.”
Still, the numbers represent a slowdown from 2022, when Lanvin Group posted a 37 percent increase in revenues.
Losses in the first half of 2023 widened to 40.9 million euros on the adjusted EBITDA line versus 35.5 million in the year-ago half, but the company said it’s on track to achieve breakeven in 2024.
Chan explained the bigger loss includes revenue decline at Lanvin, and selling and marketing investments such as in-person fashion shows.
Lanvin Group’s gross profit margin improved to 58.5 percent from 55.9 percent a year ago.
“Overall, the group is in its strongest position ever to accelerate revenue and capitalize on the operating leverage we have built,” Chan asserted. “We believe the second half of this year, we’ll see improving market condition that we’ll be able to capitalize on and drive top line growth.”
He briefly acknowledged heightened M&A activity in the fashion and retail sector, hinting “we’re having discussions with several interesting parties.”
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