Lanvin Group Holdings H1 FY26 earnings call LANV

The first half of 2026 saw Lanvin Group execute its transformation amidst a challenging luxury market, resulting in a 13% year-over-year revenue decline to EUR 101 million. Despite this, the group achieved substantial profitability improvements, with gross margin rising to 59%, contribution profit margin improving by 7.7 percentage points, and adjusted EBITDA margin by 10.7 percentage points. These gains reflect a leaner and more efficient operating platform, with e-commerce returning to growth and a reshaped retail footprint of 151 directly operated stores.

Lanvin Group significantly reduced its cost base across the portfolio, with G&A costs declining substantially at the brand level: approximately 30% at Lanvin, 50% at Wolford, 45% at Sergio Rossi, and 43% at St. John since H1 2023. These reductions stem from organizational simplification and tighter spending discipline, while selective investments continue in creativity, product, and customer engagement to support long-term brand development.

The group continued its strategy of optimizing its retail network, reducing directly operated stores from 174 at the end of 2025 to 151 by June 2026. This ongoing process involves rationalizing underperforming locations while selectively pursuing strategic openings. The objective is to enhance productivity, improve economics, and elevate the customer experience, with a focus on driving performance within the existing network through traffic generation, clienteling, and merchandising.

Lanvin's revenue decreased by 17.9% to EUR 22.9 million in H1 FY26, yet underlying performance showed positive trends. Like-for-like sales in boutiques remained positive despite store closures, and wholesale revenue increased by 16% due to earlier fall/winter deliveries. A key highlight was the gross margin expansion of nearly 390 basis points to 58.2%, driven by stronger sell-through and improved product lifecycle management, leading to a reduction in contribution loss from EUR 12.3 million to EUR 6.2 million.

Wolford's revenue was EUR 31 million, down 6% year-over-year, but the business demonstrated improving momentum and stabilization. Its DTC business declined only 2%, largely due to store network optimization, while like-for-like retail remained positive and e-commerce grew by 22%. Gross margin recovered significantly, increasing from 56% to 60%. The brand plans to strengthen wholesale, expand e-commerce, and improve productivity in the second half.

St. John reported revenue of EUR 35.5 million, a 10.5% decline, primarily due to retail footprint rationalization and unfavorable currency dynamics; in USD, the decline was a more limited 5%. E-commerce was a strong performer, growing 31% in its reporting currency, supported by effective digital acquisition and improved marketing ROI. Gross margin increased to 69%, and contribution margin improved to 12.3%. The brand is developing new growth channels, including concession models, and plans two capsule collections for H2.

Sergio Rossi's revenue fell 28.6% to EUR 10.9 million as the brand transitioned to an asset-light model. Wholesale revenue, excluding third-party production, increased 21%, indicating renewed partner interest. Third-party production revenue decreased by EUR 1.9 million due to planned phase-out. Gross margin was temporarily pressured by channel mix shifts and clearance activity, but tight control over selling and other expenses mitigated the impact on contribution margin. The focus for H2 is to capitalize on the SS27 collection, rebuild margin through supplier negotiations, and optimize the supply chain.

For the second half of 2026, Lanvin Group's priorities include continuing the transformation and retail footprint optimization, focusing on growth opportunities across markets, channels, and products, and leveraging partnerships and collaborations. The group will also maintain discipline in cost, working capital, and cash management, while selectively investing in high-return areas and optimizing its brand portfolio for long-term potential.