PARIS—Lanvin, France’s oldest surviving fashion house, is beset by plunging sales, mounting losses and management upheaval. That didn’t deter Chinese conglomerate Fosun International Ltd. from paying €100 million ($123 million) for a majority stake in the company earlier this year.
Chinese investors shopping for luxury companies appear ready to pay up—even if the brands are showing losses or stagnant revenue. Whether it’s Swiss shoemaker Bally, French crystal maker Baccarat or Austrian lingerie company Wolford, many of Europe’s...