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From red carpet to red ink
Lanvin’s revenue falls 23% as rebound strategy takes shape
Olga Merzlyakova
May 01, 2025
In a luxury market searching for momentum, Lanvin Group just reported a 23% decline in FY 2024 revenue, falling to €328 million—the sharpest contraction among publicly listed European fashion groups this season (even though Lanvin itself, the oldest operating French fashion house, is now owned by the China-based Lanvin Group and thus technically no longer European)
Fashion Group | FY 2024 Revenue change |
|---|---|
Lanvin Group | -23% |
Burberry | -20% |
Kering | -12% |
Salvatore Ferragamo | -10.5% |
LVMH | -2% |
Richemont | +5% |
What’s dragging the numbers?
The downturn was broad-based, with all five portfolio brands (Lanvin, Wolford, Sergio Rossi, St. John Knits, and Caruso) posting year-on-year declines, and key markets like Greater China and EMEA experiencing double-digit contractions. Margins were also under pressure: gross profit fell to 56% (down from 59%), while net loss widened to €189 million.
Lanvin’s playbook for a rebound includes:
Creative reset – Peter Copping (ex-Balenciaga, Oscar de la Renta) now leads Lanvin, while Paul Andrew has taken over at Sergio Rossi.
Store rationalization – The retail network was trimmed from 279 to 225 doors, with DTC now accounting for 61% of sales (up from 58% a year ago).
Cost discipline – G&A expenses were reduced by 15%, although financing costs remain elevated.
Unlike many larger luxury houses, Lanvin Group hasn’t relied heavily on price increases to drive revenue. According to the Wayback Machine, the price of Lanvin’s iconic Pencil Cat bag rose by just 16% between 2021 and May 2025. In contrast, during the same period, the Lady Dior saw a 50% increase, while the Gucci Jackie climbed by more than 60%. It indicates that limited price increases did little to counteract broader demand softness and shrinking sales volumes.
Image Credit: Lanvin
Point of view
Lanvin’s recovery depends on the patience of both management and investors to endure difficult quarters until new leadership and products begin to show results. With ballet flats trending again, the brand has begun reviving its signature ballerinas—a timely move, though I’m still waiting for the lace-up versions, which remain my personal favorite. A new leather icon—such as an updated “Happy” bag—would also help anchor its accessories strategy. Past collaborations with brands like Acne Studios and H&M (although long ago) proved Lanvin’s ability to surprise and stay culturally relevant; a well-chosen new partnership could do the same today.
Lanvin Happy Bag
Wolford, meanwhile, is well-positioned but under-leveraged. The rise of shapewear—led by brands like SKIMS—demonstrates strong demand for bodywear that blends function with fashion. Combined with the continued growth of luxury athleisure, this gives Wolford a clear opportunity to modernize its product mix and reclaim relevance with a new generation.
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