The growth of luxury groups continues to be strong, as evidenced by the latest financial results of the Chinese entity, formerly known as Fosun Fashion Group. With a revenue of 202 million euros, the company announced its balance sheet for the first six months of 2022, ending on June 30th. The luxury fashion company, which includes popular brands such as Lanvin, Sergio Rossi, St. John, Wolford, and Caruso, experienced a remarkable 73% increase in revenue compared to the same period last year. This surge in revenue brought their total to 202 million euros, marking it as a “record result” according to Joann Cheng, CEO of Lanvin Group. This comes after a successful year in 2021, where they achieved a revenue of 339 million euros.
The outstanding financial performance of the company can be largely attributed to the European, North American, and Asian markets, which saw respective revenue increases of 91%, 58%, and 194%. These impressive numbers are particularly noteworthy considering the challenging geopolitical and health contexts that persisted during this period. One of the key drivers of this growth is the success of the Lanvin brand, which saw its sales increase by an impressive 117% year-on-year to reach 64 million euros. Bruno Sialelli, who leads the brand, has played a significant role in its growth, achieving revenue growth rates of 201% and 235% in the key European and North American markets. The wholesale sales channel also experienced a surge in popularity, with a remarkable 260% increase.
The growth of Lanvin can be attributed to a strong emphasis on leather goods and footwear, as well as the overall dynamism of its product range. This is evident in their recent venture into the golf clothing market with the creation of the Lanvin Blanc brand in August 2022. Another brand within the luxury group, Wolford, also performed well, ending the semester with a revenue of 54 million euros, a 29% increase mainly driven by North America and the retail sales channel. It’s worth noting that the success of the group was amplified by the addition of Sergio Rossi, which was acquired in June 2021. The company remains open to further brand acquisitions to strengthen its already impressive portfolio.
Apart from the individual brands’ achievements, Lanvin Group as a whole has seen significant growth in its distribution channels. Wholesale sales increased by 89%, while direct sales experienced a 66% increase at the end of the semester. Furthermore, the company has successfully tapped into the online market, particularly in China, with the positioning of Lanvin on popular e-commerce platforms JD.com and RED Mall.
The restructuring efforts implemented by Lanvin Group in recent years are clearly paying off, as evidenced by their positive financial results. After expressing their intention to go public earlier this year, the company is now focusing on refining its development strategy. The successful roadmap they have established has also attracted the attention of investors. Alongside the release of their semi-annual results, Lanvin Group announced that South Korean company Meritz Securities Co has committed to investing between 50 and 75 million dollars in the company. With additional transactions expected in the near future, Lanvin Group could secure a total of 290 million dollars in new capital, providing a significant boost for the growth of their brands.
Link1: Lanvin Official Website
Link2: Sergio Rossi Official Website
