admin Luxury fashion group Lanvin has reported widening losses in the first half of the year despite a 6.4 percent increase in revenue.
The group, whose portfolio includes its namesake label as well as Sergio Rossi, Wolford, and St. John Knits, posted a H1 loss of 72.2 million euros compared to a loss of 68.7 million euros the prior year, while its adjusted EBITDA loss widened to 41 million euros from a loss of 36 million euros.
Its gross profit, however, increased to 125 million euros from 113 million euros.
“We continue our track record of global growth while we make progress on our path to profitability,” said the group’s chair and CEO Joann Cheng in a statement.
She continued: “Our improvement in gross profit and contribution profit are evidence of our commitment to securing profitable growth. We have done the groundwork for our brands to accelerate their growth and are excited about our prospects for the remainder of 2023.”
Group revenues up, but Lanvin label struggles
The luxury group generated H1 revenue of 215.5 million euros, up from 202 million euros a year earlier.
The company saw growth across regions, with Greater China up 13.9 percent, Asia excluding Greater China up 27.1 percent, EMEA up 5.3 percent, and North America up 2.6 percent.
All the group’s brands reported growth in the first half except for its namesake label, Lanvin, which saw a 10.9 percent drop in revenue to 57 million euros, which it said was mainly due to its focus on a creative transition as well as comparatively fewer key product and marketing initiatives.
Sergio Rossi and Caruso saw the strongest revenue growth, up 22.4 percent to 33 million euros and 33.6 percent to 20 million euros, respectively.
Wolford’s revenue increased 8.4 percent to 59 million euros, while St. John’s revenue rose 11.3 percent to 47 million euros.
Looking ahead, the company said it expects to “maintain momentum into the second half of 2023 and continue its margin improvement”.
It said it will continue to focus on topline revenue, and said it aims to achieve break-even adjusted EBITDA in 2024.
