Lanvin Group (LANV) Q1 2025: Revenue Down 22% as Creative Transitions Reshape Brand Trajectory
Lanvin Group’s first half revealed the full impact of sector-wide luxury softness and creative transitions, with revenue contracting sharply but operational discipline and brand repositioning efforts laying groundwork for a potential rebound. Despite top-line pressure, sequential improvement in Q2, margin stabilization at core brands, and aggressive cost actions signal possible inflection as new collections and leadership changes take hold in H2. Investors should weigh the durability of cost savings and the timing of creative refreshes against persistent macro and wholesale channel headwinds.
Summary
- Brand Reset in Motion: Creative leadership changes and new collections are central to H2 recovery plans.
- Operational Streamlining: Store rationalization and G&A reductions are cushioning margin pressure.
- Margin Watch: Sequential improvement in Q2 provides early evidence of execution traction.
Performance Analysis
Lanvin Group’s H1 2025 revenue fell 22% year-on-year to €133 million, reflecting a combination of sector-wide luxury demand softness and deliberate creative transitions at its flagship brands. Gross profit margin contracted by 400 basis points to 54%, pressured by the sell-through of prior season inventory and underutilization of production capacity—typical risks during creative handovers and product mix shifts. Negative operational leverage further reduced contribution and adjusted EBITDA margins, though cost actions partially offset the impact.
Despite the challenging macro and retail backdrop, the group delivered sequential improvement in Q2: Lanvin and Sergio Rossi D2C (direct-to-consumer, sales through owned stores and e-commerce) revenue grew 46% and 16% quarter-on-quarter, respectively, while Wolford’s gross margin expanded by 1673 basis points as inventory clearance and production normalization took hold. St. John, which anchors the group in North America, remained steady with revenue flat in H1 and gross margin robust at 69%.
- Wholesale Weakness Intensifies: EMEA and Greater China wholesale softness was pronounced, as partners delayed orders ahead of new creative launches.
- Retail Optimization Gains Traction: 29 underperforming stores were closed, improving retail productivity and cost efficiency.
- Brand-Level Divergence: St. John’s resilience and Wolford’s Q2 rebound contrast with ongoing volatility at Lanvin and Sergio Rossi.
Group cost discipline (notably G&A reductions at Wolford, Sergio Rossi, and St. John) is supporting margin stabilization, but the timing and scale of top-line recovery remain dependent on successful brand relaunches and macro normalization.
Executive Commentary
"Performance at some of our brands was tempered by creative transitions as the markets awaited new collections and by overall sector softness. Despite these challenges, I'm proud to highlight that St. John demonstrated remarkable resilience growing its core North American market despite the volatility. Most importantly, our strong cost discipline and accelerated retail footprint optimization began to deliver visible improvements in the second quarter, a positive trend we are focused on continuing."
Andy Liu, Executive President
"Our revenue in the first half was 133 million euro, down 22% year on year, reflecting softer market conditions and a planned creative transitions. Gross profit margin declined by 400 basis point to 54%... Importantly, these measures preserve flexibility and position us to capture momentum in the second half of this year."
David Chan, Executive President and CFO
Strategic Positioning
1. Creative Leadership and Brand Rejuvenation
Lanvin’s future hinges on the impact of new creative direction, with Peter Copping’s debut collection at Paris Fashion Week and Paul Andrews’ first collection at Sergio Rossi positioned as catalysts for renewed consumer interest. The group is investing in global marketing campaigns, digital activations, and refreshed in-store experiences to amplify these launches, aiming to reverse the “wait-and-see” approach that suppressed H1 wholesale orders.
2. Operational Efficiency and Cost Control
Cost discipline remains a core lever, with G&A (general and administrative, overhead operating costs) reductions across Wolford (down 27%), Sergio Rossi (down 25%), and St. John (down 35%) since H1 2023. The closure of 29 underperforming stores and a shift toward flagship locations reflect a pivot to higher productivity and brand equity. These moves are designed to protect margins amid revenue volatility and to provide operating leverage if demand rebounds.
3. Channel and Geographic Rebalancing
Wholesale exposure, especially in EMEA and Greater China, remains a structural risk, with both regions experiencing pronounced declines. The group’s response includes a focus on D2C recovery—evidenced by strong Q2 e-commerce gains—and selective expansion in higher-potential markets (e.g., Wolford’s planned push in Middle East and APAC). St. John’s North American focus (98% of revenue) continues to provide a buffer against global volatility.
4. Brand-Specific Transformation Initiatives
Wolford’s essentials repositioning, St. John’s archival revivals and sport luxe collaborations, and Caruso’s proprietary brand growth are all examples of tailoring strategy to each brand’s core strengths and market realities. These micro-level moves are critical to driving differentiated performance within the group’s broader luxury portfolio.
Key Considerations
Lanvin Group’s H1 2025 was defined by defensive execution and foundational repositioning, with the following factors shaping the investment case as the group enters a crucial second half:
Key Considerations:
- Timing of Creative Payoff: The success of new collections at Lanvin and Sergio Rossi will be pivotal for restoring top-line growth and rebuilding wholesale momentum.
- Durability of Cost Savings: Sustained G&A and retail footprint discipline are vital for margin recovery, especially if revenue pressure persists longer than expected.
- Channel Risk Management: Overreliance on wholesale in EMEA and China exposes the group to retailer caution and macro shocks; further D2C penetration and regional diversification are needed.
- Brand-Level Divergence: St. John’s steady performance and Wolford’s Q2 margin rebound demonstrate the value of brand-specific strategies in a volatile sector.
Risks
Wholesale order delays and macroeconomic caution in EMEA and Greater China remain the most acute risks, with creative transitions adding uncertainty to the timing of recovery. Margin improvement is contingent on cost control holding amid ongoing top-line pressure, and inventory management will be tested as new collections ramp. Investors should remain alert to execution slippage and further sector-wide demand shocks, especially if global luxury trends deteriorate further.
Forward Outlook
For H2 2025, Lanvin Group guided to:
- Renewed growth momentum from the launch of Peter Copping and Paul Andrews’ debut collections.
- Continued cost discipline, with further G&A reduction and retail network optimization.
For full-year 2025, management maintained a focus on:
- Margin recovery through operational efficiency and targeted marketing spend.
- Driving D2C and digital channel growth to offset wholesale volatility.
Management highlighted several factors that could influence H2 performance:
- Consumer response to new creative directions at Lanvin and Sergio Rossi.
- Ongoing macro and geopolitical headwinds, especially in Greater China and EMEA.
Takeaways
Lanvin Group’s H1 2025 results underline the challenges of creative transition and global luxury sector softness, but also show early signs of operational stabilization and brand-level resilience.
- Cost Actions Cushion Downturn: Aggressive G&A and store rationalization have prevented deeper margin erosion and provide a platform for recovery if demand returns.
- Brand Launches as Inflection Point: The commercial reception of new collections in H2 will determine the trajectory for both revenue and market perception.
- Channel and Regional Risks Persist: Wholesale exposure and macro uncertainty in EMEA and China remain structural headwinds, requiring continued vigilance and adaptation.
Conclusion
Lanvin Group’s first half was marked by revenue contraction and sector headwinds, but also by clear progress on cost discipline and foundational brand repositioning. The second half will test whether creative refreshes and operational streamlining can translate into tangible growth as the group attempts to turn sequential improvement into sustainable momentum.
Industry Read-Through
Lanvin Group’s results reinforce the broader narrative of luxury sector volatility in 2025, with creative transitions and macro caution amplifying wholesale risk and channel divergence. The group’s experience highlights the value of D2C investment, cost control, and brand-specific strategies as levers for resilience. Other luxury players with heavy EMEA or China wholesale exposure may face similar order delays and inventory risk, while those able to accelerate creative renewal and operational efficiency could emerge stronger as sector conditions normalize. Retailers, suppliers, and marketing partners should monitor the pace of creative adoption and consumer response to new collections as a leading indicator for H2 luxury demand.