Lanvin Group upbeat as key brand sales soar
Lanvin Group on Monday said revenues rose 73% to €202 million in the first half of the year. It was one of the highest growth rates in the global luxury industry as its flagship Lanvin brand saw 117% global sales growth, with wholesale up 260%.
The company -- which owns Lanvin, Wolford, Sergio Rossi, St John Knits and Caruso -- said it underscored the “success of an improved product and merchandising strategy, with refreshed brand appeal”.
It’s on track to achieve “positive 2022 results” and chair and CEO Joann Cheng said that momentum is “continuing to build across all brands, in all markets and across all sales channels”.
That said, the group has lowered its pre-investment equity value from $1.25 billion to $1 billion ahead of its stock exchange listing. The change is based on “various considerations, including the latest currency and stock market environment”.
The strong revenue rise was driven by “outstanding growth in Europe and North America”, up 91% and 58% year-on-year, respectively. This was “a testament to the group’s solid foundation in its five brands’ home turf and the success of its global growth strategies”.
And even with the impact of Covid-19 restrictions in Greater China for much of the period, sales in the market increased by 32%, while sales in the rest of Asia grew 194% “as the brands continued to penetrate new high-potential markets”.
As mentioned, Lanvin brand sales more than doubled, reaching €64 million “as it continued to grow its brand awareness. In particular the brand has renewed its global product and merchandising strategy, with an increasing focus on leather goods and footwear and made important ongoing improvements in customer fulfilment”.
Europe and North America were “outperforming markets” with 201% and 235% increases in revenue. Wholesale also powered ahead.
Wolford recorded revenue of €54 million, up 29%, with sales growth spread across almost all geographical regions and distribution channels, most notably a 46% increase from its retail channel, with the North American market growing 48% and EMEA by 28%. Excluding the licensing business, like-for-like revenue growth was over 40%.
The company is driving ahead with its growth strategies for its various brands with Lanvin having “embarked upon a successful brand reset anchored in its French couture heritage. The house has extended its product strategy and assortment to build a comprehensive product line-up for women and men, which has been well received at the recent Paris fashion show. The brand’s second limited-edition capsule collection with Los Angeles-based streetwear brand Gallery Department was also very well received, attracting a younger generation of new customers”.
Wolford has been diving deep into collaborations with brands such as Italian streetwear label GCDS and France’s Mugler that have helped it reach new customer groups and further boosted brand awareness. Additionally, The W athleisure collection grew by 22% year-on-year and accounted for 23% of seasonal sales in the first half of 2022.
Meanwhile, Sergio Rossi launched two exclusive capsule collections, the first named after its new artistic director Evangelie Smyrniotaki, and the second, named the Jelly special collection, with both “well received by the market”.
The company added that overall DTC sales increased by 66%, driven by retail store openings such as Lanvin’s new retail stores at strategic locations in mainland China and Hong Kong, as well as Wolford’s new flagship store in Paris, on Rue Saint Honoré, with more openings planned before year end.
DTC was also helped by e-commerce expansion, which included Lanvin’s presence on China’s e-commerce platforms JD.com and RED Mall. And Sergio Rossi became its first label to have successfully transitioned onto a new digital platform powered by Shopify’s technologies in North America, with Lanvin expected to follow suit later this year.
Meanwhile, as well as Lanvin’s wholesale leap, group-wide wholesale grew by 89% “thanks to renewed brand propositions, expanded offerings and highly effective marketing”.
Outside of brand-specific developments, the company also announced that South Korea's Meritz Securities Co has committed US$50 million in a private placement ahead of the group listing on the stock exchange and is considering an additional investment of up to $15 million.
The proceeds of these investments will be used to further support the group’s strong growth momentum.
Meritz joins existing shareholders of the group, including Fosun International Limited, Itochu Corporation, Stella International Limited, Baozun Inc, and Golden A&A.
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