Lanvin Group significantly reduced its first-half adjusted EBITDA loss despite lower revenue as store rationalization and cost reductions improved the luxury company’s underlying economics. First-half revenue fell 12.9% to €100.8 million from €115.8 million.
The decline reflected the planned optimization of Lanvin Group’s retail footprint and ongoing transformations across its brands. The company reduced its network to 151 directly operated stores.
Despite lower sales, adjusted EBITDA improved to a loss of €34.6 million from a €52.2 million loss.
That represents an approximately €17.6 million reduction in losses, while adjusted EBITDA margin improved by 10.7 percentage points to negative 34.3% from negative 45.1%.
Contribution profit also improved substantially, narrowing to a €8.9 million loss from a €19.2 million loss.
Gross margin moved higher to 59% from 57.7%, an improvement of 129 basis points, despite the decline in revenue. Lanvin attributed the gain to improved sell-through, product lifecycle management and supply-chain efficiencies.
Revenue remained under pressure across the portfolio. Lanvin brand revenue fell 17.9%, Wolford decreased 6%, St. John declined 10.5% and Sergio Rossi dropped 28.6%.
There were signs of improvement within individual channels.
Group e-commerce returned to growth, and St. John e-commerce increased 31% in its reporting currency while maintaining a 70% gross margin. Wolford’s gross margin expanded to approximately 60%.
KEY QUOTE:
“We have reshaped how the Group operates, emerging leaner, more agile and materially more efficient.”
Andy Lew, Executive President of Lanvin Group
