Valentino’s Profits Drop 22% in 2024, Plans to Rebalance Wholesale Channel
On Friday morning, luxury fashion brand Valentino released its financial results for the full year 2024. The numbers revealed a significant 22% decrease in profits, totaling €246 million EUR. This decline can be attributed to a slowdown in luxury shopping, particularly in Asia.
The company’s revenues also saw a decline of 3% (or 2% at constant exchange rates), reaching €1.31 billion EUR. Valentino described the current landscape as “challenging and complex.” However, there was a bright spot in the report – online sales were up 5% and made up 70% of the brand’s total revenues for the year.
Looking ahead, Valentino has a plan to rebalance its wholesale channel by focusing on more integrated partnerships. This move is in response to sluggish sales in the luxury sector, which can be attributed to post-pandemic spending fatigue, high inflation rates, and a slowing economy in China – a key market for high-end labels. With the recent tariff announcements from President Donald Trump, the sector is bracing for an even longer slump.
In a statement accompanying the report, Valentino’s CEO Jacopo Venturini stated, “Our work has taken a decisive step with the arrival of Alessandro Michele as our new Creative Director.” Michele, who previously worked at Gucci, joined Valentino in March of last year, replacing Pierpaolo Piccioli after his 25-year tenure as creative director. Michele’s designs have been well-received by both critics and fans, with his first collection hitting stores in September and October of last year.
Venturini praised Michele’s “extraordinary inspiration” and his ability to reinterpret the brand’s past while infusing it with his unique creative vision. It’s worth noting that in 2023, Gucci-owner Kering purchased a 30% stake in Valentino for $1.87 billion USD. This deal also includes the option for Kering to acquire all of Valentino’s share capital before 2028. While Kering now has representation on Valentino’s board, the majority shareholder remains Qatari investment fund Mayhoola with a 70% stake in the brand.
