Lanvin Group's Strategic Resilience and Cost Efficiency: A Pathway to Recovery Amid Luxury Market Downturns?

Lanvin Group’s 2024 financial performance—marked by a 23% revenue decline to €329 million and a negative Adjusted EBITDA of €92 million—has raised questions about its ability to navigate a challenging luxury market. Yet, beneath these headline figures lies a story of strategic recalibration, disciplined cost control, and creative reinvention. By analyzing the Group’s operational adjustments, leadership changes, and margin resilience, this article assesses whether Lanvin Group is on a viable path to recovery.

Revenue Decline and Market Challenges

The Group’s revenue contraction in 2024 was driven by a confluence of factors: a 28% drop in wholesale sales and a 19% decline in direct-to-consumer (DTC) sales [2]. Key brands like Lanvin (-26%), Sergio Rossi (-30%), and Wolford (-31%) bore the brunt of the downturn, while St. John and Caruso fared relatively better, with declines of 12% and 7%, respectively [3]. These results reflect broader industry headwinds, including weaker demand in EMEA and Greater China, as well as the Group’s own strategic repositioning [1].

Cost Control and Operational Efficiency

To offset the revenue shortfall, Lanvin Group implemented aggressive cost-cutting measures. General and administrative (G&A) expenses were reduced by 15% in 2024, while marketing and selling expenses were trimmed by 8% [1]. By H1 2025, these efforts intensified, with St. John and Wolford achieving 35% and 27% reductions in operating costs, respectively [3]. Such discipline helped stabilize the gross margin at 56% in 2024 and 54% in H1 2025, despite the revenue drop [1]. This margin resilience underscores the Group’s focus on pricing strategies and inventory optimization [3].

Creative Leadership and Brand Revitalization

A critical pillar of Lanvin Group’s strategy has been its investment in creative leadership. The appointment of Andy Lew as Executive President in 2025 signaled a renewed focus on operational and creative alignment [1]. Complementing this, Peter Copping’s return to Lanvin and Paul Andrew’s appointment at Sergio Rossi aim to reinvigorate brand identities and attract new customer segments [3]. These moves suggest a long-term commitment to repositioning the Group’s portfolio, even as short-term financial metrics remain under pressure.

EBITDA Challenges and Future Outlook

Despite cost controls and margin resilience, Lanvin Group’s EBITDA remains negative. H1 2025 saw a -€51.93 million Adjusted EBITDA, worsening from -€42.11 million in H1 2024 [1]. This trajectory highlights the difficulty of achieving profitability in a transitional phase. However, the Group’s disciplined approach—coupled with early signs of recovery in H1 2025 revenue (-22% vs. -23% year-on-year)—suggests that the foundation for stabilization is being laid [1].

Conclusion

Lanvin Group’s 2024 performance demonstrates a mix of challenges and strategic resolve. While the revenue decline and negative EBITDA underscore the severity of market conditions, the Group’s cost-cutting measures, creative reinvention, and margin discipline position it to weather the downturn. Investors should monitor H2 2025 results for evidence of recovery momentum, particularly in DTC sales and brand-specific performance. If the Group can sustain its operational rigor while executing its creative vision, it may yet emerge as a resilient player in the luxury sector.

Source:
[1] Lanvin Group Reports H1 2025 Revenue of €133 Million [https://www.prnewswire.com/news-releases/lanvin-group-reports-h1-2025-revenue-of-133-million-operational-discipline-and-early-recovery-momentum-set-foundation-for-growth-in-h2-302541616.html]
[2] Lanvin Group revenues decline 23% in 'transitional year' [https://www.voguebusiness.com/story/companies/lanvin-group-revenues-decline-23-in-transitional-year]
[3] Lanvin Group Demonstrates Strategic Resilience in [https://www.prnewswire.com/news-releases/lanvin-group-demonstrates-strategic-resilience-in-challenging-luxury-market-lays-foundation-for-future-growth-302442475.html]
[4] Lanvin Group Posts Revenue of €171 million in H1 2024 [https://www.lanvin-group.com/en/lanvin-group-posts-revenue-of-e171-million-in-h1-2024/]