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Management Series: Lanvin Group (LANV)

Lanvin Group (LANV; $1.58; $186MM Market Cap) participated in WTR’s Consumer Products Virtual Investor Conference on June 6, 2024. Representing the company was IRO James Kim. This report contains a transcript of the conversation, which can be accessed on demand. Link accessible in our full report. Lanvin Group is a platform of well-known luxury brands with deep heritages that was founded in 2018 to take advantage of global luxury consumption, and its accelerated growth, particularly in the Asia-Pacific region. Industry experts expect 60-70% of global luxury consumption will come from APAC by 2030. However, most of the luxury brands are housed in Europe, with a few in the US. Lanvin Group, which currently consists of the Lanvin, Sergio Rossi, Wolford, St. John Knits, and Caruso brands, gets ~50% of its revenue in Europe, ~35% in the US, with the balance in Asia-Pacific. The company views this stack as upside down. The company plans to expand in North America, which is the largest luxury market, while participating in the fast industry growth in APAC. North America has historically been underpenetrated and under invested in when Lanvin Group’s brands ran independently. The company has only four full-priced boutiques in the US, two in New York, one in Florida, and one in California, so there’s a lot of white space there. The brands also did very little e-commerce running standalone. Lanvin has built a US digital platform for all of its brands and has greatly improved its logistics, particularly for the brands coming out of Europe. The company’s DTC/wholesale mix is about 60%/40%, with the focus now on growing the DTC side of the business, which is higher margin. DTC includes its branded stores and e-commerce. The company looks to maintain its wholesale accounts since they are valuable partners, and it’s a way to leverage marketing by having the expanded points of distribution. Fosun International, headquartered in Shanghai, as is Lanvin Group, remains the company’s largest shareholder. Fosun has been a great resource for the company to fund and develop the platform since before the company went public. Additionally, many of the company’s suppliers and business partners are shareholders. Therefore, along with the debt and equity markets, the company has ample resources with which to secure funding to continue executing on its growth strategy despite currently being EBITDA negative. The company’s goal is to be cash flow break-even in 2025. WTR held its inaugural Consumer Products Virtual Investor Conference on June 5 and 6. Presentations are available on demand via a link in our full report and 1x1 requests can be sent to .