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Lanvin Group 2022 sales ‘hampered’ by Greater China

Lanvin Group announced on Thursday revenues of EUR 422 million for the year 2022, a 37 percent increase year-over-year compared to 2021, as well as gross profits of EUR 238 million, representing a 56 percent gross margin and a 40 percent increase on the prior-year period.

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The owner of Lanvin, St. John Knits, Caruso, Wolford, and Sergio Rossi, said all five brands showed year-over-year growth in 2022. Lanvin, the group’s flagship brand, grew global revenue by 64 percent, with a record 145 percent growth in its wholesale business, and 27 percent growth in its DTC business.

Additionally, revenues in each of the group’s regions and channels showed strong growth, with EMEA and North America growing 39 percent and 36 percent, respectively. Greater China, “hampered” by the pandemic, grew by 15 percent, said the Chinese-owned group.

By brand, Lanvin Greater China revenues increased 9 percent to EUR 25.7 million, while Wolford Greater China sales dipped 7 percent to EUR 6.8 million. Sergio Rossi Greater China revenues surged 135 percent to EUR 10.8 million, while St. John Knits Greater China sales plummeted 20 percent to EUR 5.2 million. Lastly, Caruso sales in Greater China increased 2 percent to EUR 0.6 million for the year.

“We are pleased with the progress we made in 2022. Not only did we achieve record revenues, we also made great strides in improving our cost structure and streamlining our operations,” said Joann Cheng, Chairman and CEO of Lanvin Group.

“Our progress in 2022 has laid a strong foundation for 2023, and notwithstanding current macroeconomic conditions, we remain optimistic for the current year, especially with the continued resurgence of Greater China.”

Looking ahead, the group said it expects to maintain its 2022 momentum into 2023 and achieve solid margin improvement as the year progresses.

“Many of the ‘nuts and bolts’ initiatives started in 2022 will reach completion in 2023 resulting in continued margin improvement. Additionally, a significant portion of the store optimisation has taken place and while the group will continue to enhance its retail network in 2023, we believe the foundation is in placed to opportunistically grow its footprint,” added Lanvin.

The group said it remains on track for break-even profitability in full-year 2024.