The Chinese fashion group Lanvin Group Holdings Limited closed the 2022 financial year in deep red. The net loss of the group, which includes the Lanvin, Wolford, Sergio Rossi, St. John and Caruso brands, was more than three times higher than in the previous year, despite a strong increase in sales.
CEO Cheng sees progress on the way to breakeven
CEO Joann Cheng was nevertheless satisfied with the results presented on Thursday. “We’re pleased with the progress we’ve made in 2022,” she said in a statement. “Not only have we achieved record sales, we have also made great strides in improving our cost structure and streamlining our processes.” Break-even should then be achieved in the 2024 financial year.
In the past year, however, the company slipped deeper into the red. The operating deficit, which was EUR 62.8 million in 2021, rose to EUR 225.3 million. However, one-time charges of EUR 84 million, which were incurred as part of the IPO completed in December, contributed to this. Adjusted for special effects, the operating loss grew by 32 percent to 142.3 million euros. The bottom line was a reported net loss of 239.8 million euros. In 2021, the corresponding shortfall was only 76.5 million euros.
Annual sales grew by 37 percent in 2022
The group had already announced a significant increase in sales in mid-February, citing preliminary figures. According to the slightly different final results that are now available, revenues rose by 37 percent to EUR 422.3 million compared to the previous year. On a pro forma basis – i.e. taking into account the complete previous year’s sales of the Sergio Rossi brand, which was acquired in July 2021 – sales grew by 24 percent.
All brands that have been part of the group for some time were able to achieve double-digit growth. Lanvin managed to increase sales by 64 percent to 119.8 million euros. Wolford increased by 15 percent to 125.5 million euros, St. John by 17 percent to 85.9 million euros and Caruso by 25 percent to 30.8 million euros.