Lanvin Group records strong sales growth in 2021
In 2021, Lanvin Group reported pro forma revenue of 339 million euros, up 52 percent compared to 2020, driven by growth of Lanvin, a strong comeback at Wolford and integration of Sergio Rossi into the portfolio.
The company said in a statement that with an improvement of 33 percent in adjusted EBITDA performance in the past year, the group achieved break-even in its contribution margin in 2021 and believes it is well on track to achieve EBITDA profitability by 2024 as planned.
Commenting on the full year results, Joann Cheng, chairman and CEO of Lanvin Group, said: “Lanvin Group is proud to have delivered budget-beating results in 2021, with record growth. Lanvin’s 108 percent year-over-year sales growth and Wolford’s best adjusted EBITDA performance in 10 years both demonstrate the strength of our global platform and the success of our innovative strategy.”
Review of Lanvin Group’s full year results
Lanvin Group’s portfolio of heritage brands includes French couture house Lanvin, Austrian skinwear specialist Wolford, Italian luxury shoemaker Sergio Rossi, American womenswear brand St. John Knits, and Italian menswear maker Caruso.
Lanvin reported a 108 percent global sales increase to 73 million euros, supported by strong growth in the North America and Greater China markets, where sales increased by 253 percent and 134 percent, respectively.
The company added that the growth was driven by its newly launched leather goods and footwear collections as well as strong performance of its DTC channels, which grew by 172 percent compared to 2020, supported by eight new store openings and significant improvement in sales per square metre performance, and a 415 percent year-on-year growth in e-commerce .
Wolford recorded revenue of 109 million euros in 2021, up 15 percent. Wolford’s adjusted EBITDA also turned positive, representing the best EBITDA result in ten years.
On an IFRS consolidated basis, the group generated 148 million euros in revenue from the EMEA market, representing 48 percent of global sales, and recorded 30 percent sales growth amid pandemic lockdowns. In 2021, North America contributed 35 percent of total sales while Greater China more than doubled its revenue contribution and accounted for 14 percent.
Lanvin Group’s performance through sales channels
Global DTC sales increased by 50 percent, driven by retail footprint and e-commerce expansion as the group continued to diversify its revenue mix and reduce reliance on wholesale channels.
The group continued to open new stores in Europe, North America and Asia, and saw improvement in existing stores’ annualised sales per square metre. The company also launched a new digital platform powered by Shopify’s innovative technologies in North America, with Lanvin and Sergio Rossi becoming the first two brands to transition onto the platform starting in H2 2022. Sergio Rossi was acquired by Lanvin Group in the second half of 2021.
In 2021, Lanvin Group entered into strategic partnerships with ITOCHU Corporation, a Japanese trading conglomerate; Baozun, an e-commerce business partner of global fashion, luxury and other brands in China; Activation Group, an interactive data performance marketing group for fashion and luxury brands in Greater China; and Stella International, a developer and manufacturer of luxury footwear and leather goods.
The company further said that Lanvin Group’s business combination with PCAC, an affiliate of global investment firm Primavera Capital Group, is expected to close later this year, including the approval of PCAC’s shareholders and the listing of securities of the post-acquisition company (PubCo) on the New York Stock Exchange.