Lanvin Group, a global luxury fashion group, today announced its 2021 results and the filing with the U.S. Securities and Exchange Commission of a registration statement on Form F-4, in connection with its previously announced proposed business combination with Primavera Capital Acquisition Corporation
Ms. Joann Cheng, Chairman and CEO of Lanvin Group, said: “Lanvin Group is proud to have delivered budget-beating results in 2021, with record growth. Building on the tremendous hard work of our team in delivering on our strategy over the past three years, 2021 has been a milestone year where we have achieved contribution margin break-even and had a record 52% pro forma revenue growth
Lanvin‘s 108% year-over-year sales growth and Wolford’s best Adjusted EBITDA performance in 10 years both demonstrate the strength of our global platform and the success of our innovative strategy. We were also able to further enrich our global brand portfolio by welcoming the legendary Italian shoemaker Sergio Rossi. We are now further scaling up our business to accelerate growth with our unique proposition to transform heritage brands as we progress towards our proposed listing on the New York Stock Exchange.”
She continued, “We expect 2022 to be even better. We have significant momentum across all of our brands as we continue to solidify our foundation in Europe and capture the multiple untapped opportunities which exist in the North American and Asian markets.”
Lanvin Group’s portfolio of heritage brands includes one of the oldest operating French couture houses Lanvin, Austrian skinwear specialist Wolford, Italian luxury shoemaker Sergio Rossi, iconic American womenswear brand St. John Knits, and high-end Italian menswear maker Caruso.
2021 results: record growth and proven brand transformation
The Group reached a critical inflection point in its development with record growth in 2021, paving the way for consistent future growth. The Group had pro forma revenue of €339 million in 2021, up 52% compared to its revenue in 2020, driven by the transformative growth of Lanvin, a strong comeback at Wolford and the successful integration of Sergio Rossi into the portfolio. With a significant improvement of 33% in Adjusted EBITDA performance in the past year, the Group achieved break-even in its contribution margin in 2021 and believes it is well on track to achieve EBITDA profitability by 2024 as planned. In particular:
Lanvin reaffirmed its strong growth trajectory in 2021 with a 108% year-on-year global sales increase to €73 million, demonstrating enormous vitality of the brand among today’s luxury consumers, especially in the North America and Greater China markets, where sales increased by 253% and 134%, respectively.
The growth is especially driven by its newly launched leather goods and footwear collections as part of its category rebalance strategy, as well as strong performance of its DTC channels, which grew by 172% compared to 2020, supported by eight new store openings and significant improvement in sales per square meter performance, and a 415% year-on-year growth in e-commerce
Wolford recorded revenue of €109 million in 2021, up 15% year-on-year, cementing its position as the world’s leading supplier of women’s skinwear in the upper premium segment. Wolford’s 2021 Adjusted EBITDA also turned positive, representing the best EBITDA result in ten years (adjusted for real estate sales). We believe Wolford is now well on track for a strong, profitable performance in 2022.
On an IFRS consolidated basis, the Group generated €148 million in revenue from the established EMEA market in 2021, representing 48% of global sales, and recorded 30% year-over-year sales growth amid pandemic lockdowns. Building on this strong foundation in Europe, the Group also deepened its penetration in the world’s two largest luxury markets, North America and Asia, capturing previously untapped opportunities. In 2021, North America contributed 35% of total sales while Greater China more than doubled its revenue contribution and accounted for 14%.
Global expansion strategy and disruptive business model driving portfolio growth
Lanvin Group’s growth strategies have demonstrated huge success over the past year:
Product category expansion:
Lanvin continued to drive accessories and RTW sales with a refreshed brand proposition echoing the new generation of consumers. The brand’s new accessory lines, such as the Pencil Bag, Hobo Cat Bag and Curb sneakers have been much sought after since launch, further reinforcing its diverse RTW offerings. The French luxury house also teamed up with Los Angeles-based cult streetwear brand Gallery Department to launch two limited-edition capsule collections. The collections, which reinvent Maison Lanvin’s signature products and embrace a furiously urban style, have been highly successful favourites with fans.
Wolford‘s “The W” athleisure lines have continued to be a new high-growth avenue for expansion, embracing athleisure and conceiving exclusive capsule collections with internationally acclaimed designers. Staying true to its commitment to craftsmanship, Wolford has created huge commercial success with both its main line of products and its collaborations with chic shoe brand Amina Muaddi in 2021, Italian legendary dressmaker Alberta Ferretti and iconic streetwear brand GCDS in 2022, among others. These collaborations have boosted Wolford’s brand awareness and propelled its rapid growth.
Sales channels and footprint upgrade:
- Global DTC sales increased by 50%, driven by a disciplined retail footprint and e-commerce expansion as the Group continued to diversify its revenue mix and reduce reliance on wholesale channels.
- The Group continued to open new stores for its portfolio brands in strategic locations in Europe, North America and Asia, and saw significant improvement in existing stores’ annualized sales per square meter. We believe the new stores are well on course to recover their initial investments with many already profitable, paving the way for further expansion.
- The Group continued to strengthen its portfolio brands’ digital architecture and e-commerce coverage, most recently launching a new digital platform powered by Shopify’s innovative technologies in North America, with Lanvin and Sergio Rossi becoming the first two brands to transition onto the platform starting in H2 2022.
Sergio Rossi was acquired by Lanvin Group in the second half of 2021. Since then, Sergio Rossi has been integrated into the Group’s ecosystem as another critical pillar, providing luxury shoemaking expertise that also benefits the other portfolio brands.
The Group will continue to explore synergetic strategic partnerships and acquisition opportunities, which expand its luxury fashion ecosystem and complement its existing portfolio.
Untapped opportunities provide significant upside potential
Lanvin Group is confident in delivering even further improved results in 2022, supported by the solid fundamentals of the European market and the accelerating momentum of North American and Asian markets. The Group is also looking to tap existing and new strategic partners to unlock the growth potential of new markets, including the Middle East and Southeast Asia, and to acquire businesses that complement its existing brand portfolio.
Despite the COVID-19 pandemic and dynamic geopolitical backdrop, the Group has been successful in navigating these challenges as it delivers on its global expansion strategy and the development of its enhanced omni-channel infrastructure. Lanvin Group believes it is on track to deliver substantial growth with its innovative and brand transformation efforts.
Lanvin Group’s business combination with PCAC, an affiliate of Primavera Capital Group, a leading global investment firm, is expected to close later this year, subject to customary closing conditions, including the approval of PCAC’s shareholders and the listing of securities of the post-acquisition company on the New York Stock Exchange.
About Lanvin Group
Lanvin Group is a leading global luxury fashion group headquartered in Shanghai, China, managing iconic brands worldwide including Lanvin, Wolford, Sergio Rossi, St. John Knits, and Caruso. Harnessing the power of its unique strategic alliance of industry-leading partners in the luxury fashion sector, Lanvin Group strives to expand the global footprint of its portfolio brands and achieve sustainable growth through strategic investment and extensive operational know-how, combined with an intimate understanding and unparalleled access to the fastest-growing luxury fashion markets in the world.
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