Just expressed a loud LOL chuckle to the comments of Mr. Chan. So much spotlight on "managers", while the numbers across the indicators that measure the latter's performance are utterly 'mediocre' (and that's a generous way to put it). Justifiably, the 'NYSE: LANV' share price does justice (forgive the redundancy) to "the efforts of [Mr. Chan and his] managers". 'Good for you', Mr. Chan, on "[o]ngoing margin improvement". Surely, noticed the price bumps in hundreds of dollars on some of the items. Arguably, a 'remarkable' display of "focused brand strategies" and "increasing operational efficiency", when the sales volumes are lagging behind. (Excuse the sarcasm.) If the decision-makers at Fosun paid a closer attention to the approaches of Arnaults, Pinaults, Rossos, and Bertelli/Pradas, whose success they so ungracefully and futilely seek to replicate, perhaps they would have noticed that it is the 'creators and artisans' who "drive companies", "drive results", and "drive profitability" (apparently Mr. Chan has a thing for "driv[-ing]") in Fashion Industry, not so much the "managers". The "provenance and heritage" of the brands in the group's portfolio are, indeed, "second-to-none", but despite (or, perhaps, because of) that acknowledgement by Mr. Chan, it appears as though the group's executive suite and the patrons at Fosun have taken the advantages of the brands' lineages for granted and, thus, have overlooked the role that the creative work around product plays in the dynamic of a fashion label's success. If managed sensibly, the group's eponymous brand alone could carry the entire portfolio like the 'magnificent seven' carries the S&P500. It could have been an easy, quick turnaround to profitability for the female-founded, oldest operating French fashion house, if Fosun's priorities were creative directorship and craftsmanship, rather than some general management concepts. Instead, the creatively-distabilized house has been deployed as a vehicle for an ungainly chase after the successful luxury-brand conglomerates. Against the backdrop of that misplaced focus, the group's (its management's) lackluster performance and dwindling stock price appear unsurprising.
April 30, 2024 - Lanvin Group (NYSE: LANV, the “Group”), a global luxury fashion group with Lanvin, Wolford, Sergio Rossi, St. John and Caruso in its portfolio of brands, today announced its results for the full-year 2023. The Group achieved revenue of €426 million, a 1% increase year-over-year versus 2022; and gross profit of €251 million, representing a 59% gross margin and a 250bps increase versus 2022. Zhen Huang, Chairman of Lanvin Group, said: “I'm honored to have become the Chairman of Lanvin Group in 2023. The Group has made significant progress since its inception in 2018. In reviewing our 2023, I thought back to the resiliency we showed during the pandemic, posting growth every year, and I see the same resilience and our ability to thrive in any environment, this past year. I believe we are on the right track and am optimistic we will reach our growth and profitability goals.” Eric Chan, CEO of Lanvin Group, said: “Managers drive companies, and their teams drive results. I am thoroughly impressed by the efforts of our managers and our teams to maintain growth and continue to forge the path to profitability in a challenging market environment. My team, along with our brand managers remain resolute in our mission to grow our brands and drive profitability. We are a group of brands with a provenance and heritage second-to-none, and I am proud of what we have accomplished in 2023. We are collectively on a journey, and I am very optimistic about our future.” LANVIN|Wolford|Sergio Rossi|St. John Knits|Caruso
