Valentino's Profits Dropped 22% in 2024
Revenues were down 3% at €1.31 billion EUR in the 12-month period.
On Friday morning, Valentino shared its financial results for the full year 2024, revealing that its profits dropped a sizeable 22% to €246 million EUR in the 12 months as the company struggled to buoy itself amid a slowdown in luxury shopping, especially in Asia.
Valentino’s revenues declined 3% (or 2% at constant exchange rates) to €1.31 billion EUR in what the label called a “challenging and complex landscape.” Notably, the company’s online sales were up 5% and comprised 70% of revenues across the year. Looking ahead, Valentino plans to rebalance “the wholesale channel in favor of more focused distribution through integrated partnerships.”
Sluggish sales in the luxury sector are one part caused by post-pandemic spending fatigue, another the product of high inflation rates, and a third the product of a slowing economy, mounting debt crisis, and real estate crash in China, a target market for high-end labels. With President Donald Trump’s new tariff announcements, the sector is eyeing an even longer slump.
In a statement alongside the report, Valentino’s CEO Jacopo Venturini said, “Our work has taken a decisive step with the arrival of Alessandro Michele as our new Creative Director.” The former Gucci designer joined the House in March last year, replacing Pierpaolo Piccioli, who was Valentino’s creative director for 25 years.
Michele’s work at the House’s helm has been well-received by critics and fans alike, and his first designs arrived in stores last September and October. Per Venturini, Michele’s inaugural output has “already shown how Alessandro’s extraordinary inspiration reinterprets the past through his unique and outstanding eyes, while embracing the freedom he has to fully express his creative genius.”
Notably, Gucci-owner Kering purchased a 30% stake in Valentino in 2023. The deal, which includes the option for Kering to acquire all of Valentino’s share capital before 2028, was valued at $1.87 billion USD. Kering now has board representation at Valentino, though Qatari investment fund Mayhoola remains the majority shareholder with 70% of the share capital.
