Lanvin Group published its first-half results on Wednesday. The luxury group reported an increase in sales but worsened losses. However, it expects a good second half of the year.
Some good, some not so good…The Lanvin Group reported a 6.4% increase in sales for the first half of the year, but its losses widened.
The company, which holds the Sergio Rossi, Wolford and St. John Knits brands in its portfolio, posted a first-half loss of 72.2 million euros, compared with 68.7 million euros the previous year. At the same time, its adjusted EBITDA loss widened from 36 million euros to 41 million euros.
However, gross profit rose from 113 million euros to 125 million euros.
“We are continuing our global growth while making progress towards profitability,” said Joann Cheng, the Group’s CEO. “The improvement in gross margin and contribution margin testifies to our commitment to profitable growth. We have set the stage for our brands to accelerate their growth, and we are excited about our prospects for the remainder of 2023.”
In the first half of the year, the company recorded total revenues of €215.5 million, compared with €202 million previously. The company demonstrated growth on all geographical fronts: Greater China saw a 13.9% increase, Asia ex-China posted a 27.1% rise, EMEA a 5.3% increase and North America a 2.6% increase.
Lanvin brand in difficulty
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In the first half of the year, all brands within the Group recorded growth, with the exception of the flagship Lanvin brand, which reported a 10.9% drop in sales to 57 million euros. This reduction is mainly attributed by the Group to the creative transition period and a relatively limited number of key product and marketing initiatives.
The Sergio Rossi and Caruso brands recorded the strongest growth, with revenues up 22.4% to 33 million euros and 33.6% to 20 million euros respectively. Revenues at Wolford rose by 8.4% to 59 million euros, while those at St. John’s increased by 11.3% to 47 million euros.
As for future prospects, the company expressed its forecast to “maintain momentum in the second half of 2023 and continue to improve margins”. It wishes to continue focusing on its top-line revenues, and aims to break even in terms of adjusted EBITDA by 2024.
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Read also>LANVIN AND LANCEL REDUCED THEIR LOSSES IN 2022
Featured photo : ©Lanvin Group
