Lanvin Group
Executive Summery
A global luxury fashion group based in China, recorded earnings of €240 million in the FY2025. These earnings depict an 18% year-on-year reduction, attributed to low demand in the luxury industry. The majority of the drop was attributed to greater China, with a 42% fall in sales in the mainland region. Sales through the direct consumer channel contributed 68% to total sales. Even with declining sales, the group recorded improvements in its efficiency by ensuring costs were optimized. Brands such as Lanvin and Wolford witnessed a turnaround in H2, while that of St. John was stable. Lanvin Group is currently concentrating on restructuring itself for better growth and profits in 2026.
Company Overview
The Lanvin Group which is based in China is a global luxury fashion group established in Shanghai. The company was founded in 2017 and controls premium brands including Lanvin, Wolford, Sergio Rossi and St. John. The company draws its inspiration from Lanvin Company which was star.
Industry Overview
The Lanvin Group is an international company that specializes in the management of luxury brands such as Lanvin, Wolford, Sergio Rossi, and St. John. The key issues facing the Lanvin Group in 2025 include brand development, efficiency, and change in demand for luxury brands. However, in spite of declining demand from China and low expenditure in luxuries around the world, the Lanvin Group invested in innovation and direct-to-consumer services. It is from this strategy that Lanvin hopes to blend heritage with fashion.
Financial Performance ( FY 2025 VS FY 2024 )
Particulars | 2025 (€’000) | 2024 (€’000) | |
|---|---|---|---|
Revenue | 240,498 | 291,864 | |
Cost of Sales | (100,620) | (119,368) | |
Gross Profit | 139,878 | 172,496 | |
Marketing & Selling Expenses | (170,591) | (206,942) | |
General & Administrative Expenses | (107,311) | (109,007) | |
Impairment of Goodwill & Brand | (66,730) | (31,208) | |
Other Operating Income/(Expenses) | (10,631) | 7,896 | |
Loss from Operations (before non-underlying items) | (215,385) | (166,765) | |
Non-underlying Items | (16,263) | 10,243 | |
Loss from Operations | (231,648) | (156,522) | |
Finance Cost (Net) | (35,490) | (29,398) | |
Loss Before Income Tax | (267,138) | (185,920) | |
Income Tax Benefit/(Expense) | 15,775 | (3,086) | |
Loss from Continuing Operations | (251,363) | (189,006) | |
Loss from Discontinued Operations | (11,982) | (289) | |
Loss for The Year | (263,345) | (189,295) | |
Attributable to Owners of Company | (238,494) | (165,255) | |
Non-controlling Interests | (24,851) | (24,040) | |
Basic & Diluted EPS (€) | (2.04) | (1.41) |
Graph
Key Financial Ratios
Ratio | 2025 | 2024 | |
Gross Profit Margin | 58.16% | 59.10% | |
Cost Of Sale Ratio | 41.84% | 40.90% | |
Marketing And Selling Exp Ratio | 70.93% | 70.90% | |
Administrative Exp Ratio | 44.62% | 37.35% | |
Operating Loss Margin | -96.32% | -53.63% | |
Net Loss Margin | -109.50% | -64.86% | |
Finance Cost Ratio | 14.76% | 10.07% | |
Tax Impact Ratio | 5.90% benefit | 1.66% expenses | |
EPS Change | -2.04 | -1.41 |
SWOT ANALYSIS
Strengths: Lanvin Group Holdings Ltd enjoys the benefit of owning a range of luxury brand names, market positioning of its products at a premium level and growing sales through direct-to-consumer channels.
Weaknesses: The firm has incurred losses in consecutive years, and high operating costs and dependence on the Chinese market reduce its profitability.
Opportunities: Improved demand for luxury goods globally, digital sales and entering emerging markets can offer potential for growth in the future.
Threats : Intense competition from LVMH and Kering, economic uncertainties and changing fashion trends can pose threats to business performance.
Conclusion
Despite the current financial problems that Lanvin Group Holdings Ltd has due to decreasing sales and continuous losses, it still benefits from an excellent list of top luxury brands, being well positioned in the premium market as well as growing its own consumers’ base, creating the basis for a turnaround. Great possibilities for sustainable development through increased efficiency, enhanced brand value and future market recovery in particular in China.
References
- Lanvin Group Holding Ltd Annual Report 2024-25
- Lanvin Group Holding Group Official Website