Lanvin group's revenue plummets: a transformation in progress?
Lanvin Group is navigating choppy waters. The luxury conglomerate, encompassing Lanvin, Wolford, Sergio Rossi, and St. John, reported an 18% revenue decline to €240 million in fiscal 2025, a stark reflection of broader market pressures and an ongoing internal restructuring. The numbers, released this week, underscore the challenges facing the group, but Zhen Huang, group chair, remains cautiously optimistic about a turnaround.
A portfolio under pressure
The drop isn't uniform across the board. Lanvin bore the brunt of the downturn, with revenues falling by 30% to €58 million. The company attributes this to a deliberate repositioning of the brand and optimization of its retail network—a strategy that, while intended for long-term gain, has clearly impacted short-term performance. However, Huang pointed to encouraging signs in the second half of 2025 following the debut collection by Peter Copping, suggesting a potential shift in trajectory. The early indications are promising, but the road to recovery remains uncertain.
Wolford, grappling with logistics disruptions in the first half of the year, saw a 14% revenue decrease to €76 million. Marco Pozzo's promotion to CEO in February signals a renewed focus on the brand's recovery efforts, and improved product availability in the latter half of 2025 offered a glimmer of hope. Sergio Rossi’s sales took a more significant hit, plummeting 30% to €30 million, while St. John proved comparatively resilient, experiencing a modest 1% revenue decline to €78 million.
Cost control and a dtc focus
Despite the revenue shortfall, Lanvin Group managed to improve adjusted EBITDA from -€94 million to -€90 million in 2025. This improvement is largely attributed to strategic store closures and tighter cost controls, demonstrating a commitment to operational efficiency. Direct-to-consumer (DTC) channels accounted for a substantial 68% of revenue, and saw improvements at both Lanvin and Wolford, highlighting the growing importance of this sales avenue.
Geographically, North America demonstrated “relatively resilient” sales performance, while EMEA and Greater China presented softer demand. This divergence underscores the complexities of navigating a global luxury market, where regional economic conditions and consumer preferences vary significantly.
The path forward: a focused model
Looking ahead to 2026, Lanvin Group anticipates progress fueled by “renewed creative momentum, strengthened leadership, and a more focused operating model.” The company is completing its current transformation plan, hoping to build on the foundations laid over the past year. While uncertainty lingers in the macroeconomic environment, the group's actions suggest a resolve to weather the storm and position its brands for long-term success. The question remains whether these strategic shifts will be enough to restore profitability and regain market share in a fiercely competitive landscape.