Dive Brief:
- Valentino reported this week that revenue reached around $1.6 billion (1.4 billion euros), driving an 18% increase in the Italian luxury house’s core profit, according to Reuters.
- Sales increased 10% at constant currency rates, with part of the rise attributable to directly operated shops. These stores accounted for about 62% of sales last year, up from 54% in 2019, the publication reported.
- The revenue and profit increases come as CEO Jacopo Venturini, who has led the company since mid-2020, has been focused on reducing the brand’s reliance on wholesale by focusing only on certain distribution partners.
Dive Insight:
Although Valentino is not giving up on wholesale entirely, the brand’s financial results support its recent efforts, Venturini told WWD.
“These results are fully in line with our strategy of rebalancing wholesale versus retail by increasingly reducing the wholesale activity to focus only on working with selected partners that reflect our brand values and sustain our business strategy and vision,” he said.
Valentino opened two dozen stores in 2022, and it has plans for a similar number this year, according to the publication.
The luxury brand also recently began leasing a 26,300-square-foot space on Madison Avenue in New York’s Upper East Side. The space was previously rented by Calvin Klein. And it recently opened a two-level boutique at Piazza Della Signoria, which is located at the heart of Florence, Italy.
Still, Valentino will have to contend with changes that could impact its bottom line. In January, Kering-owned Gucci poached Sabato De Sarno from Valentino to become its new creative director. At Valentino, De Sarno had overseen menswear and womenswear under the guidance of Pierpaulo Piccioli, the brand’s creative director.
Under Piccioli, Valentino recently released Maison Valentino Essentials, which is meant to be a collection of timeless menswear wardrobe staples. To drum up interest in the line, the brand developed an accompanying campaign developed with the help of AI technology.
Valentino is controlled by Mayhoola, a Qatari investment vehicle that also owns French luxury house Balmain.
