Chinese fashion group Lanvin Group Holdings Limited is one step closer to its IPO announced in March. On Tuesday, the company announced that it had filed the necessary registration documents with the US Securities and Exchange Commission (SEC).
The parent company of the Lanvin, Sergio Rossi, Wolford, St. John Knits and Caruso brands, which operated as Fosun Fashion Group until it was renamed last autumn, is planning the IPO on the New York Stock Exchange by way of a merger with Primavera Capital Acquisition Corporation (PCAC). This is a so-called Special Purpose Acquisition Company (SPAC), i.e. a company that is already listed on the stock exchange and was founded specifically as a vehicle for the IPO of other companies.
Annual sales increase by almost 39 percent
The documents published on Tuesday also included detailed results for the 2021 financial year. Accordingly, consolidated sales were EUR 308.8 million, which corresponded to an increase of 38.7 percent compared to the previous year. The Sergio Rossi label has contributed 28.7 million euros to total sales since it was taken over in July last year.
The Lanvin fashion house developed particularly dynamically, with sales of EUR 72.9 million, more than twice as high as in 2020 (+108.3 percent). Wolford grew by 14.6 percent to EUR 109.3 million, while St. John’s sales rose by 9.9 percent to EUR 73.1 million. At the Caruso label, revenues fell by 6.3 percent to 24.7 million euros.
The Group achieved double-digit sales growth in all market regions. Sales in Greater China (+126 percent to 42.5 million euros) and in the rest of Asia (+160 percent to 11.4 million euros) developed particularly dynamically. In the EMEA region, which includes Europe, the Middle East, Azerbaijan and Kazakhstan, sales grew by 30.1 percent to EUR 148.2 million, and in North America by 24.6 percent to EUR 106.7 million.
The group can significantly reduce its loss and is pursuing ambitious growth targets
Thanks to the strong growth in sales, the group was able to reduce its losses: the operating deficit fell from 124.3 to 62.8 million euros, the reported net loss, which had amounted to 135.7 million euros in 2020, was 76 last year, 5 million euros.
The group is luring potential investors with ambitious growth promises: According to an investor presentation published in May, sales are to be increased to 989 million euros by 2025, more than tripling them. To this end, an average annual sales growth of 31 percent is aimed for.
In addition to further acquisitions, above-average increases due to further expansion in Greater China should contribute to this. There, the group is aiming for an average increase in sales of 56 percent per year in order to quintuple revenues by 2025. The share of the Greater Chinese market in total sales is to be increased from 14 percent to 28 percent.