Contribution profit for the year increased significantly to €24 million, marking a substantial improvement over the previous year and indicating a more than five-fold increase since FY21, the first year in which the Group reported a positive contribution benefit. However, adjusted EBITDA continued to show losses, although the loss margin improved from 19 per cent in FY21 to 15 per cent in FY23, demonstrating gradual improvement in operational efficiency, the company said in a press release.
Lanvin Group reported a modest 1 percent increase in revenue, reaching €426 million (~$454.6 million) in FY23, with gross profit rising to €251 million (~$267 .8 million dollars), achieving a margin of 59 percent. The company's e-commerce sales increased 3 percent in FY23, despite a slight decline in wholesale and direct-to-consumer channels overall.
Lanvin, the Group's flagship brand, faced a drop in revenue, but managed to slow the rate of decline to 7 percent by the end of the year, with revenue rising to €112 million. The brand's gross profit increased to 65 million euros, with a margin improvement of 50 percent in FY22 to 58 percent in FY23. Although the contribution profit still reflected a loss, it showed an improvement, going from €15 million to €12 million.
Wolford saw a slight revenue increase of 1 percent, but its gross profit fell to €83 million from €86 million, with margin falling from 69 percent to 66 percent, due to a reclassification of expenses. Sergio Rossi saw a 4 percent drop in revenue to €60 million, although it saw a slight increase in gross profit margin from 50 percent to 51 percent, benefiting from a shift toward DTC sales with higher margin, with contribution profit margin improving from 11 percent to 12 percent.
St. John showed resilience with a 5 percent revenue increase to €90 million and a gross profit increase to €57 million, improving its gross margin from 61 percent to 63 percent. The contribution profit increased marginally from €10 million to €11 million. Caruso stood out with significant growth, achieving a 30 percent increase in revenue to €40 million. It also experienced substantial improvements in gross profit, which went from €7 million to €11 million, and in contribution profit, which increased from €6 million to €9 million, with a contribution margin that increased significantly. from 18 percent to 24 percent.
“Managers drive businesses and their teams drive results. I am deeply impressed by the efforts of our managers and teams to sustain growth and continue to forge the path to profitability in a challenging market environment. My team, along with our managers brand, remain resolute in our mission to grow our brands and drive profitability,” said Eric Chan, CEO of the Lanvin Group.
Fiber2Fashion News Desk (DP)
