[vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”administrator,editor,author,armember”][vc_column][vc_column_text]
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.
The head of the House – a Gucci defector in place at Valentino since mid-2020 – has set a goal that its retail network will generate 80% of the brand’s sales by 2025 or 2026.
A successful move into luxury
Earlier this year, CEO Pierpaolo Venturini announced the reorganization of its financial and operational structure into two separate entities.
He then recalled in a statement the desire of the Roman luxury House to reaffirm its couture spirit: “We are determined to build together the next chapter of the brand, to streamline the business as well as to reposition Valentino (as) the most established Italian Couture House.”
Under his leadership, Valentino gave up fur in 2022. The Italian luxury house has also decided to focus on its core line, namely its women’s and men’s ready-to-wear collections and its haute couture collection. A decision that implies the end of REDValentino – its young and accessible line – from the fall-winter 2023-24 season.
This second line was launched in 2003 by the current artistic director Pierpaolo Piccioli and his partner at the time, Maria Grazia Chiuri, now at Dior, since 2016.
A line whose name evokes as much red – the iconic color of founder Valentino Garavani – as the acronym “Romantic Eccentric Dress.” Yet, over time, the contemporary silhouette proposed by REDvalentino ended up looking like the main line, blurring the value proposition.
In doing so, Pierpaolo Venturi, its CEO, is convinced: “The concentration of messages on a single brand will allow a more organic growth of the house.
The opening of its Jeddah store in Saudi Arabia at the Al Khayyat Center is a perfect example of this rapid rise in luxury.
In a refined décor that plays on art deco and 1970s styles, the aim is to develop a sense of Italian-style hospitality in the spirit of a home or “new home” according to the CEO’s wishes, as well as to reaffirm the House’s identity codes.
To reinforce an intimate relationship, this new boutique concept aims to offer private appointments where it is possible to reserve certain exceptional pieces. According to this concept, the first boutiques will begin refurbishing in November 2022.
A trajectory of rising luxury, at work in luxury, whether with the announcement of Chanel to develop points of sale dedicated to its wealthy customers or the opening by the Italian House of Gucci of the pilot of its concept of ultra-luxury private salons with a first location in Los Angeles, a stone’s throw from the Melrose Place district and the Hollywood studios.
Read also > Valentino’s first store in India to open in late summer
Featured photo : © Valentino[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
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.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.
[/vc_cta][vc_column_text]Featured photo : © Valentino[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]
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.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.
[/vc_cta][vc_column_text]Featured photo : ©Valentino[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]
