The Italian fashion house has just announced declining sales and operating profit for 2023. Kering, its 30% shareholder, is counting on its newly appointed artistic director, Alessandro Michele (ex Gucci), to awaken the sleeping beauty’s desirability.
Will Alessandro Michele, Valentino’s brand-new Artistic Director, make the same kind of impact at Valentino as he did in his early days at Gucci?
We can imagine that Kering, which took a 30% stake in the Italian House in 2023, with an option to buy out the current owner, the Qatari fund Mayhoola, by 2028, would like him…
But with the luxury goods market hardening, he may find it difficult to repeat the feat…
However, the House where Pierpaolo Piccioli has been styling for a quarter of a century could do with a little wake-up call. Its 2023 performance, while not disastrous, is hardly flamboyant.
On April 22, the Italian fashion house revealed that its revenues fell by 3% at constant exchange rates to 1.35 billion euros ($1.44 billion) last year. Operating profit fell by 18% to 99 million euros, while EBITDA (including the impact of IFRS16) was down 7% to 314 million euros, compared with 2022.
Contrasting performances
The Group’s performance is, however, mixed, both geographically and in terms of distribution channels.
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Read also > VALENTINO: ALESSANDRO MICHELE, NEW ARTISTIC DIRECTOR
Featured Photo: © Valentino
