The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Lanvin Group, the fashion company majority owned by China’s Fosun International Ltd., cut its valuation ahead of an expected public listing later this year, citing pressures such as currency depreciation and stock declines among peers.
Lanvin trimmed its equity value to $1 billion from a previous $1.25 billion in March. The adjustment in part reflects a decline in the value of the euro in recent months and lower trading multiples of listed global luxury companies, Joann Cheng, chairman and chief executive officer of Lanvin Group said in an interview.
“The macro environment has made more conservative attitudes to the capital markets,” Cheng said. But she stressed that Lanvin’s business is still growing. The company on Monday reported 73 percent revenue growth in the first half of 2022 from a year earlier.
Cheng said she expects Lanvin Group to list on the New York Stock Exchange by December. The company has applied to use the ticker symbol LANV.
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Lanvin houses the eponymous French fashion brand, as well as Italian shoemaker Sergio Rossi, Austrian lingerie brand Wolford, US womenswear maker St. John Knits and Italian menswear brand Caruso.
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Lanvin Group to List in New York Following SPAC Merger
The owner of brands including Lanvin, Sergio Rossi, St. John Knits and Wolford expects to raise $544 million from the listing.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.