Lanvin Group (NYSE: LANV), the global luxury fashion group owned by Chinese conglomerate Fosun International and based in Shanghai, released its 2024 results on April 30. As its preliminary results, released in February, had suggested, they are not good.
Lanvin Group reported a 23% drop in sales in 2024. According to Astrid Wendlandt, founder of the investigative media outlet Miss Tweed, Lanvin Group has begun to divest itself of its assets in order to raise cash at a time when its accounts are in the red.
But the group, which is positioned in the accessible luxury segment and owns Lanvin, the oldest French fashion house still in operation, Wolford, St. John Knits, Sergio Rossi, and Caruso, remains confident and is focusing on a strategy of creative revival, international expansion, and digitalization to strengthen its global footprint.
“2024 has been a year of transformation for Lanvin Group. Despite a challenging market environment, we have taken decisive steps to strengthen our brands, optimize our operations and lay the foundations for future growth. With our new creative leadership and rigorous execution, we are confident in our ability to navigate the changing luxury industry and create long-term value,” said Zhen Huang, President of the Lanvin Group.
Are the group’s assets already up for sale?
According to information gathered by Miss Tweed, the Lanvin Group is reportedly in serious financial difficulty, to the point of wanting to sell off its assets to raise cash.
According to banking sources consulted by the investigative media outlet in question, Chinese mega-conglomerate Fosun International is quietly seeking buyers for all of its brands, but has yet to find any takers on the market.
Astrid Wendlandt, founder of Miss Tweed, goes further and claims that the buildings and factories belonging to the Lanvin Group brands are already in liquidation, reflecting the urgency of the group’s financial situation.
Although the Lanvin group has not yet commented on the information released on Sunday, May 11, the audited results for the 2024 financial year are, as predicted by the preliminary results, not encouraging.
23% drop in revenue
The group’s consolidated revenue stood at €329 million, down 23% on the previous year (€427 million). This decline is attributed to an unfavorable economic environment, particularly in the EMEA and Greater China regions, where sales fell by 28% and 37% respectively. In contrast, North America and Japan showed relative stability, with more moderate declines of 13% and 12%.
Gross profit fell to €183 million, compared with €251 million in the previous year. The group’s gross margin thus declined from 59% in 2023 to 56% in 2024.
Strength in key markets
Discover our plans Subscribe for 1€ Become an active member of the community of luxury leaders.
To continue reading this article, subscribe or log in to your account
Read also > Lanvin: Peter Copping appointed creative director, hopes for a revival
Featured image: © Lanvin
