Today 4

Lanvin Group's H1 2025 slump forces reset; focus shifts to retail rebound

Bottom Line Impact

Absent decisive commercial discipline and liquidity actions, revenue pressure and a widened EBITDA loss will persist, risking further share loss; if DTC sell-through and Sergio Rossi's momentum are harnessed, H2 can stabilize with early margin rebuild and brand equity protection.

Executive Summary

Lanvin Group reported a 22% revenue decline to €133m in H1 2025, with the Lanvin label down 42.1% as wholesale and China weakness amplified the creative transition. Early retail and online upticks at Lanvin and Sergio Rossi hint at a potential H2 stabilization, but cash burn and margin pressure require immediate commercial and cost actions to protect liquidity and brand equity.

Actionable Insights

Immediate Actions (Next 30-90 days)
Stand up a 90-day commercial war room to rephase deliveries, rationalize 10-15% underperforming SKUs and stores, and lock top 50 wholesale doors for SS26 with performance-based terms
Rationale: A coordinated cadence and door discipline will stabilize full-price sell-through and prevent further shelf-space erosion ahead of the next collection cycle
Role affected:CEO
Urgency level:immediate
Cut inventory 15-20% by year-end via targeted outlets and controlled markdown windows; defer non-critical capex two quarters; extend supplier payment terms by 15 days
Rationale: Lower working capital and moderated discount exposure can reduce cash burn by €8-12m in H2 and support margin rebuild
Role affected:CFO
Urgency level:immediate
Short-term Actions (6-12 months)
Run a 12-week VIC reactivation and clienteling sprint around Peter Copping's debut capsules with 60% of spend to performance channels targeting 3x ROAS
Rationale: Concentrated demand generation and clienteling can add 8-12% uplift to DTC revenue and validate the new aesthetic without broad discounting
Role affected:CMO
Urgency level:short-term
Strategic Actions
Pivot Lanvin wholesale to a fewer-better strategy in EMEA and Asia with e-concessions and quarterly trunk shows; scale Sergio Rossi retail with two high-productivity openings and marketplace off-take limits
Rationale: Selective door expansion and brand-controlled environments improve visibility and price integrity while leveraging Sergio Rossi's relative resilience
Role affected:Chief Commercial Officer
Urgency level:strategic

Strategic Analysis

Next 30-90 days will be defined by tighter cash control, accelerated but controlled inventory normalization, and surgical wholesale resets in EMEA to avoid further margin dilution; near-term sell-through of Peter Copping's first drops will determine H2 buy depth and marketing allocation.

Over 6-12 months, successful brand reset and product cadence could rebuild gross margin by 300-500 bps through mix and utilization improvements, with Sergio Rossi positioned to anchor footwear growth and Lanvin to re-enter priority wholesale doors with stricter door productivity thresholds; failure risks permanent shelf-space loss and higher customer reacquisition costs.

Category leaders with entrenched icons are consolidating share while mid-sized houses face cautious wholesale orderbooks; Lanvin's underperformance opens space for peers in Parisian RTW and leather goods, but a clear aesthetic and hero-product focus can recapture VIC mindshare; Sergio Rossi can compete on craft and comfort in premium footwear against Italian peers if speed-to-market improves.

Underutilized production and higher clearance rates pressure suppliers and raise unit costs; multi-brand partners will ration OTB until evidence of full-price sell-through emerges; e-concessions and mono-brand retail will carry more of the revenue burden, increasing demand for CRM, last-mile flexibility, and tighter allocation governance.

Risks & Opportunities

Primary Risks

  • Extended China softness and tourism lag depress full-price sell-through into Q4
  • Wholesale shelf-space loss becomes structural if SS26 orderbook remains weak
  • Cash burn from widened EBITDA losses forces deeper discounting and brand dilutive actions

Primary Opportunities

  • Creative reset halo effect enables hero-product launches and price architecture clean-up
  • Sergio Rossi footwear momentum can provide a near-term growth and margin bridge
  • Channel mix shift to higher-margin e-concessions and mono-brand retail improves unit economics

Market Context

Luxury demand remains bifurcated with China slowdown and aspirational consumer pullback, cautious EMEA wholesale, and relatively resilient top-tier clients; brands with clear icons and disciplined distribution are outperforming while houses in creative transition face higher clearance and underutilization. For Lanvin Group, rebuilding DTC momentum and selective wholesale re-entry align with sector shifts toward omnichannel control, while Sergio Rossi's category strength in premium footwear can hedge volatility in RTW and leather goods.

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