Lanvin Group revenues soar, company still eyeing acquisition targets

By

Sandra Halliday

Published
Jul 12, 2022

Lanvin Group has released its 2021 results and said it saw 52% pro forma revenue growth to €339 million during the year. And it talked of “strong momentum and a positive 2022 outlook ahead of [its] proposed NYSE listing”. It also said it's still on the lookout for brands to acquire.

That revenue growth was driven by the “successful implementation” of its global growth strategy and acquisition of Sergio Rossi, with “robust performance” across all geographies and rapid expansion in North America and Asia.

Meanwhile the core Lanvin brand reported 108% global sales growth and an impressive 415% e-commerce sales increase year-on-year.

The company also announced its filing with the US Securities and Exchange Commission of a registration statement on Form F-4 in connection with its previously announced proposed business combination with Primavera Capital Acquisition Corporation (PCAC) that will facilitate its stock exchange listing.

CEO and Chair Joann Cheng said that the group “is proud to have delivered budget-beating results in 2021. Building on the tremendous hard work of our team in delivering on our strategy over the past three years, 2021 has been a milestone year where we have achieved contribution margin break-even…[and] a record pro forma revenue growth”.

The Lanvin label’s powerful growth also came alongside “Wolford’s best Adjusted EBITDA performance in 10 years” and Cheng said both “demonstrate the strength of our global platform and the success of our innovative strategy”.

Having acquired Sergio Rossi, the firm is now “further scaling up our business to accelerate growth with our unique proposition to transform heritage brands as we progress towards our proposed listing on the New York Stock Exchange”.

She was upbeat about this year and said the group has “significant momentum across all of our brands as we continue to solidify our foundation in Europe and capture the multiple untapped opportunities which exist in the North American and Asian markets”.

The company, which also owns St John Knits, and high-end Italian menswear maker Caruso, saw a 33% improvement in adjusted EBITDA performance in the past year and achieved break-even in its contribution margin in 2021. And it “believes it is well on track to achieve EBITDA profitability by 2024 as planned”. It didn’t specify any EBITDA figures.

Sales were especially strong in North America and greater China, with increases for the Lanvin label of 253% and 134% in those geographies, respectively.

This was helped by the launch of its new leather goods and footwear collections as part of its category rebalance strategy, as well as strong performance of its direct-to-consumer channels. It has been investing in its e-commerce operations and also opened eight new stores.

Wolford results were released separately last month, but to summarise, revenue was up 15% at €109 million in 2021.

The group said there’s plenty of untapped potential for its brands, “supported by the solid fundamentals of the European market and the accelerating momentum of North American and Asian markets”. The business is “also looking to tap existing and new strategic partners to unlock the growth potential of new markets, including the Middle East and Southeast Asia, and to acquire businesses that complement its existing brand portfolio”.

The combination with PCAC, an affiliate of Primavera Capital Group, a global investment firm, is expected to close later this year.