Lanvin Group's Q2 2025: Contradictions Emerge on Operational Efficiency, Strategic Priorities

The above is the analysis of the conflicting points in this earnings call

Date of Call: August 29, 2025

Financials Results

• Revenue: €133M, down 22% YOY
• Gross Margin: 54%, down 400 bps YOY

Guidance:

• H2 to be driven by Lanvin and Sergio Rossi debut collections with integrated marketing.
• Expect sequential improvement to continue after Q2 D2C and margin gains.
• Ongoing retail footprint optimization; 29 underperforming stores streamlined in H1.
• Continued cost discipline to protect free cash flow and improve margins.
• Wolford 75th anniversary campaign; pursue growth in Middle East and APAC.
• Sergio Rossi to expand wholesale, target U.S. push, and maintain cost controls.
• St. John to refine channels, boost e-commerce, and optimize supplier mix.
• Caruso to add wholesale accounts in U.S., Benelux, and DACH.

Business Commentary:

* Revenue and Profitability Decline: - Lanvin Group Holdings reported revenue of EUR 133 million for the first half of 2025, a 22% year-on-year decline. - The decline was attributed to softer market conditions, planned creative transitions, and the residual impact of logistic issues from the previous year.

• Improved Sequential Performance:
• Several brands showed encouraging signs of recovery in the second quarter, with Lanvin's D2C revenue growing by 46% and Sergio Rossi's by 16%.

• This improvement was driven by operational initiatives gaining traction and strategic marketing investments aimed at boosting traffic and conversion.

• Cost Management and Efficiency:

• The company successfully reduced G&A expenses across brands, including a 27% reduction at Wolford, 25% at Sergio Rossi, and 35% at St. John since the first half of 2023.

• This disciplined approach to cost management is fundamental for navigating the current environment and improving the path to profitability.

• Strategic Repositioning and Creative Transitions:

• The company is in the process of strategic repositioning across geography and product assortment, with new creative leadership at Lanvin and Sergio Rossi.
• This repositioning aims to capture demand as market conditions improve and drive growth in the second half of the year.

Sentiment Analysis:

• H1 revenue down 22% YOY to €133M; gross margin down 400 bps to 54%; adjusted EBITDA negative €52M. Q2 showed improvement: Lanvin D2C +46% QoQ, Sergio Rossi D2C +16% QoQ, Wolford gross margin +1,673 bps, Caruso revenue +11%. Management: “sequential improvement… supports our confidence for the back half” and cost/retail actions “began to deliver visible improvements.”