Lanvin to ’emphasise’ marketing impact amid luxury market downturn
The global fashion group plans to invest in marketing as luxury market downturn contributes to 20% revenue slip.
Lanvin plans to “emphasise” the impact of its marketing activity and remains “resolute” in its commitment to brand investment, as the luxury group faces a challenging second half.
In a call with investors yesterday (26 August), CEO Eric Chan said the business plans to invest in marketing and product development to set the “path for tomorrow”.
“While we will be proactive in our approach to the near-term slowdown, we remain resolute in investing in our brands to forge our path forward and to capitalise on our momentum as the markets improve,” he added.
While insisting the company will “remain proactive” in search of cost-reduction and operating efficiencies, with respect to its Lanvin and Sergio Rossi brands in particular the plan is to “further emphasise marketing initiatives” in order to help each business “forge their creative paths for 2025”.
We remain resolute in investing in our brands to forge our path forward and to capitalise on our momentum as the markets improve.
Eric Chan, Lanvin
The group, which owns flagship brand Lanvin, as well as Sergio Rossi, St. John, Wolford and Caruso, faced a €42m (£36m) loss during the first half of 2024, as struggles within its wholesale channel were compounded by a softening global luxury market, particularly in China. Revenue during the first half declined by 20% to €171m (£145m).
For the Lanvin brand specifically, revenue fell 15% to €48m (£41m), while revenue for the Sergio Rossi business declined 38% to €20m (£17m). The group’s gross profit margin has remained steady at €38m (£32m), down 1%.
CFO David Chan told investors the plan for the second half is to “improve the ROI and marketing expansion initiatives with an eye towards the new collections from Lanvin and Sergio Rossi”.
As part of the group’s commitment to boosting sales, Lanvin and Sergio Rossi both have newly appointed artistic directors.
Former Balenciaga artistic director Peter Copping is starting at Lanvin in September and Paul Andrew, previously creative director at Ferragamo, is joining shoe-brand Sergio Rossi.
Chan added the addition of Copping and Andrew will “help build the brand’s stories for the next chapter”.
