What's Happening?
Lanvin Group, the owner of the French fashion house Lanvin and Italian shoemaker Sergio Rossi, has announced the sale of its Italian menswear manufacturer Caruso to the Abu Dhabi-based Mondevo Group. This strategic move aligns with Lanvin's focus on developing its core consumer-facing brands, which are believed to offer higher profit margins compared to white label manufacturers like Caruso. The financial details of the transaction have not been disclosed. Caruso, located in Soragna, Northern Italy, employs approximately 450 people and is known for producing menswear for some of the industry's top names. The brand's revenue saw an 11% decline in the first half of 2025, contributing to 13% of Lanvin Group's revenues. The sale comes as Lanvin faces
challenges from a slowdown in the luxury industry, with a reported 22% drop in revenue in the first half of the previous year.
Why It's Important?
The sale of Caruso by Lanvin Group highlights the ongoing challenges faced by the luxury fashion industry, particularly in the wake of economic slowdowns. By divesting from Caruso, Lanvin aims to concentrate on its more profitable consumer-facing brands, which could potentially stabilize its financial performance. This decision reflects a broader trend within the luxury sector, where companies are reassessing their portfolios to focus on high-margin segments. The acquisition by Mondevo Group also underscores the growing interest of Gulf investors in European luxury brands, as they already own stakes in other Italian labels like Valentino and Roberto Cavalli. This shift could influence market dynamics and competitive strategies within the luxury fashion industry.
What's Next?
Following the sale, Lanvin Group is expected to intensify its efforts on enhancing its core brands, potentially leading to new product launches or marketing strategies aimed at boosting consumer engagement and sales. For Mondevo Group, the acquisition of Caruso may lead to strategic investments in the brand to expand its market presence and capitalize on its reputation for high-quality menswear. The luxury industry will likely continue to see similar transactions as companies adapt to changing market conditions and consumer preferences. Stakeholders will be watching closely to see how these strategic shifts impact the competitive landscape and financial health of luxury fashion brands.
