Lanvin Group Q4 Earnings Call Highlights

Key Points

• Group revenue fell materially year-over-year (management cited roughly a mid-€200m range, down about 18%) as restructuring weighed on sales, but the company maintained a resilient 58% gross margin, cut operating expenses ~12%, and improved adjusted EBITDA to a loss of €90m with contribution margin up ~40% in H2.
• Management completed the Caruso carve-out (classified as a discontinued operation) on Feb. 6 and pushed an asset-light strategy while shrinking the directly operated store base from 225 to 174 to exit underperforming locations.
• Regionally and by brand, North America outperformed; Lanvin and Sergio Rossi saw steep declines (~30%), Wolford showed a recovery (-14%) and St. John remained stable (≈-1% in EUR, +3% in reporting currency) aided by strong wholesale/e‑commerce momentum and a Nordstrom partnership.

Lanvin Group NYSE: LANV executives said fiscal year 2025 was marked by a challenging luxury demand backdrop—particularly in Greater China—while the company pushed ahead with restructuring efforts aimed at improving efficiency and advancing an asset-light model.

Speaking on the company’s full-year results call, Executive President Andy Lew described 2025 as “a year of disciplined execution and important structural changes,” as the group worked to streamline operations, optimize its retail footprint, and concentrate resources on core brands. Chief Financial Officer Ray Han said the transformation actions weighed on revenue, but the company saw “meaningful progress to improve operational efficiency and financial discipline.”

FY2025 results reflect restructuring and weaker demand

Lew reported full-year revenue of EUR 240 million, down 18% year over year, and pointed to “sequential improvement” in the second half of the year, particularly at Lanvin and Wolford. Han, presenting the financials, said group revenue declined from EUR 292 million in 2024 to EUR 214 million in 2025, attributing the drop primarily to Lanvin and partly to Wolford and Sergio Rossi amid macro pressure and “deliberate restructuring actions,” including retail footprint optimization and global brand repositioning.

Despite lower volumes, management highlighted profitability and cost initiatives:

• Gross margin: 58% in 2025, which Lew and Han said reflected resilient pricing and disciplined inventory management.
• Operating expense savings: approximately 12% versus the prior year, according to Lew.
• Adjusted EBITDA: improved to a loss of EUR 90 million, which Han said demonstrated early benefits from cost reductions.

Lew also said contribution margin improved in the second half, rising 40% compared with the first half, as the impact of the company’s initiatives began to show through.

Portfolio optimization and Caruso carve-out

Han said the company’s 2025 results reflect a change in the accounting treatment for Caruso following management approval of a strategic carve-out at the end of 2025. Under IFRS, Caruso was classified as a discontinued operation, and comparative periods were restated to exclude the business “for consistency of presentation.”

The transaction was completed on February 6, Han said, framing the carve-out as part of Lanvin Group’s portfolio optimization and a step to “streamline the portfolio and focus on long-term value creation.” Lew added that the carve-out enables the group to concentrate on core brands, leverage external partnerships, and further advance an asset-light operating model.

Retail footprint reduced; North America outperformed

Store network optimization remained a central theme. Lew said the number of directly operated stores was reduced to 174 as the company shifted toward “higher quality, more productive locations.” Han quantified the reduction from 225 stores in 2024 to 174 in 2025, describing the changes as an exit from underperforming locations to improve long-term profitability despite near-term revenue impact.

By channel, Han said direct-to-consumer remained the largest contributor at approximately 68% of total revenue, with both DTC and wholesale declining year over year due to market conditions and retail network streamlining. However, he noted “encouraging signs of stabilization,” particularly in wholesale at Wolford and St. John, and said the company intends to balance DTC and wholesale with a focus on profitability and efficiency rather than scale.

Regionally, Han said North America outperformed, supported largely by St. John’s presence and resilience. He said EMEA and Greater China saw “more significant declines,” with Greater China experiencing a pronounced drop in line with broader market trends as the company continued its store network review.

Working capital: inventory down, cash conversion cycle higher

Han highlighted progress in working capital management, including a reduction in inventory from EUR 79 million in 2024 to EUR 57 million in 2025 and a decline in trade receivables from EUR 21 million to EUR 15 million. Trade payables, however, “normalized” from EUR 76 million to EUR 46 million.

As a result, the cash conversion cycle increased to 65 days in 2025 from 34 days in 2024, and trade working capital rose to 11% of revenue from 8%. Han said that while inventory and receivables improved, overall working capital efficiency was “temporarily affected” by payables normalization, and improving cash conversion remains a priority.

Brand updates: Lanvin creative reset; St. John resilient

Management outlined progress across the group’s brands, including leadership changes. Lew said Mandy West became CEO at St. John, and Marco Pozzo joined Wolford as CEO, describing the appointments as “essential enablers of execution.”

On Lanvin, Lew said 2025 was a year of “repositioning and rebuilding,” citing refreshed creative direction under Peter Copping and a positive reception from the fashion press. He said the company reduced inventory, improved margin discipline, optimized the retail network, and streamlined the organization, acknowledging these moves pressured short-term revenue but were intended to restore long-term brand strength.

Han said Lanvin revenue declined 30% to EUR 58 million, reflecting brand repositioning, retail optimization, and reduced reliance on prior product categories. He added that contribution losses were “broadly contained” and said management saw improvement in the second half following the new creative direction, with expectations for continued progress as the brand reviews product and strengthens wholesale.

At Wolford, Lew said the brand implemented a “balanced product strategy,” improved its omni-channel experience, and leveraged its 75th anniversary to increase visibility, contributing to a strong second-half recovery. Han reported Wolford revenue declined 14% to EUR 76 million, with the first half affected by earlier logistics disruptions. He said wholesale grew 19% year over year, contribution losses improved by EUR 5 million, and the company expects continued recovery driven by supply chain stability and marketing/customer acquisition.

Sergio Rossi continued shifting toward a more flexible model. Lew cited supply chain improvements, supplier alignment, resolution of legacy issues, retail streamlining, and a strategic partnership supporting an asset-light transition. Han said Sergio Rossi revenue declined 30% to EUR 13 million, with both DTC and wholesale pressured; gross margin declined due to mix and lower production scale, though cost control limited the increase in contribution losses.

St. John was described as a stable contributor. Lew pointed to North American strength, wholesale performance, and e-commerce momentum, including an expanded partnership with Nordstrom that he said contributed to “over 40% growth” and greater visibility. Han reported St. John revenue declined 1% to EUR 78 million, while in its reporting currency the brand grew 3%. He said wholesale and e-commerce increased 14% and 25% in reporting currency, respectively, and noted a gross margin of 69% and improved contribution profit.

Looking ahead, Lew said the group’s focus for 2026 is completing its transformation and moving toward sustainable profitability through continued portfolio and channel optimization, cost discipline, and further progress on the asset-light model. He said the company expects continued recovery at Lanvin and Wolford, further progress at Sergio Rossi, and stable performance at St. John, while acknowledging ongoing macro uncertainty.

About Lanvin Group NYSE: LANV

Lanvin Group NYSE: LANV is a global luxury fashion company centered on the heritage French brand Lanvin. The group designs, manufactures and distributes a broad range of upscale apparel, leather goods, footwear, accessories and fragrances. Its product portfolio spans womenswear, menswear and unisex items, complemented by seasonal collections and signature handbag lines.

Founded in 1889 by Jeanne Lanvin in Paris, Lanvin holds the distinction of being one of the oldest continually operating French couture houses.

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