Valentino has signed a promising fiscal year, 2022. The Roman label – owned by the Qatari investment fund Mayhoola – has just revealed annual sales growth of 15% on a comparable basis and a net profit up 18% to 337 million euros.
The sign for the Italian luxury House that its repositioning strategy launched in 2019, with a rationalization of its wholesale network, is starting to prove its worth.
Specifically, Valentino achieved a turnover of 1.419 billion euros against 1.231 billion euros in 2021.
The luxury brand is also improving its profitability despite the Chinese market still being disrupted by the collateral effects of the pandemic.
It has thus recorded an operating profit (Ebit) of 121 million euros, up 30% year-on-year. Gross operating profit (Ebitda) increased by 18% to 337 million euros.
Rationalization of wholesale
Following the lead of major luxury players – seeking to strengthen the sense of exclusivity and personalization of the customer relationship – the House of Valentino has “reduced wholesale activity to focus solely on selected distribution partnerships,” said its CEO Pierpaolo Venturini in a statement.
Sales in stores run directly by the brand, including the official e-commerce site, grew twice as fast (+21%) as overall sales, while the wholesale channel recorded a 6% decline.
“Geographically, Europe, North America, and the Middle East are leading the way, while Greater China has not yet recovered from COVID,” the CEO said in a statement.
The brand’s own network generated 62% of sales in 2022 against 54% in 2019.
In 2022, the Italian luxury label opened 24 stores and relocated 7. For 2023, Valentino wants to open 23 new stores and relocate about 15, which would bring the retail park to 221 outlets by the end of the year.
Featured photo : © Valentino