The contribution profit for the year rose significantly to €24 million, marking a substantial improvement from the previous year and indicating more than a fivefold increase since FY21, the first year the Group reported positive contribution profit. However, adjusted EBITDA continued to show a loss, although the loss margin improved from 19 per cent in FY21 to 15 per cent in FY23, demonstrating gradual enhancement in operational efficiency, the company said in a press release.
Lanvin Group reported a modest 1 per cent increase in revenue, reaching €426 million (~$454.6 million) in FY23, with gross profit rising to €251 million (~$267.8 million), achieving a 59 per cent margin.
The company’s e-commerce sales increased by 3 per cent in FY23, despite a slight downturn in overall direct-to-consumer and wholesale channels.
Lanvin, the Group’s flagship brand, faced a decline in revenue but managed to slow the rate of decrease to 7 per cent by the end of the year, with revenue totalling €112 million. The brand’s gross profit rose to €65 million, with a margin improvement from 50 per cent in FY22 to 58 per cent in FY23. Although the contribution profit still reflected a loss, it showed improvement, decreasing from €15 million to €12 million.
Wolford saw a slight revenue increase of 1 per cent, but its gross profit decreased to €83 million from €86 million, with a margin decline from 69 per cent to 66 per cent, due to a reclassification of expenses. Sergio Rossi experienced a 4 per cent decline in revenue to €60 million, though it recorded a slight increase in gross profit margin from 50 per cent to 51 per cent, benefiting from a shift towards higher-margin DTC sales, with the contribution profit margin improving from 11 per cent to 12 per cent.
St. John showed resilience with a 5 per cent revenue increase to €90 million, and a gross profit rise to €57 million, enhancing its gross margin from 61 per cent to 63 per cent. The contribution profit increased marginally from €10 million to €11 million. Caruso stood out with significant growth, achieving a 30 per cent increase in revenue to €40 million. It also saw substantial improvements in gross profit, rising from €7 million to €11 million, and in contribution profit, which rose from €6 million to €9 million, with the contribution margin notably increasing from 18 per cent to 24 per cent.
“Managers drive companies, and their teams drive results. I am thoroughly impressed by the efforts of our managers and our teams to maintain growth and continue to forge the path to profitability in a challenging market environment. My team, along with our brand managers remain resolute in our mission to grow our brands and drive profitability,” said Eric Chan, CEO of Lanvin Group.
Fibre2Fashion News Desk (DP)
