Lancel, the renowned leather goods label based in Paris, has experienced a remarkable turnaround under the ownership of Italian group Piquadro. After four years of acquisition, Lancel has returned to profitability, posting a net profit of 400,000 euros in the fiscal year 2021/22. This marks a significant improvement from the previous year’s net loss of 2.2 million euros. The transformation is even more impressive when comparing it to the losses of 12.8 million euros and 7.8 million euros recorded in 2019 and 2020 respectively.
The revived profitability of Lancel can be attributed to its strong sales performance. With a total revenue of 60 million euros in the fiscal year 2021/22, the brand achieved a year-on-year growth of 26.3%. This now accounts for 40% of Piquadro’s overall sales. Piquadro, known for its leather goods brands Piquadro and The Bridge, also saw significant growth, with sales reaching 149.4 million euros during the same period, reflecting a growth rate of 31.7%. Furthermore, Piquadro’s EBITDA rose from 10.5 million euros in the previous year to 25.3 million euros.
As for the geographical breakdown of Piquadro’s sales, 46.4% come from Italy, 50% from Europe, and less than 3.6% from foreign markets. Piquadro now aims to capitalize on Lancel’s successful repositioning and expand its export business. Currently, Lancel has 78 boutiques, with approximately 60 of them located in France. The brand’s primary target for expansion is China, where it first entered the market in 2019 through Tmall. Lancel has since opened a shop-in-shop at Galeries Lafayette in Beijing.
The return to profitability for Lancel reflects the successful management and strategic efforts of Piquadro. Through restructuring the brand and expanding its sales, Lancel has become a valuable asset within Piquadro’s portfolio. With plans for further international growth, Lancel is positioned to maintain its upward trajectory and solidify its position as a leading luxury leather goods brand.
Useful links:
1. Lancel Official Website
2. Piquadro Official Website
