Italian luxury house Valentino navigated a challenging landscape in 2024, feeling the ripples of a broader decline within the fashion industry. For the year, the company reported annual revenues of €1.31 billion, a figure that remained nearly flat compared to the previous year’s €1.35 billion. When adjusted for constant exchange rates, there was a slight downturn of 2%, illustrating the pressures both domestic and global markets currently face.
Despite these economic headwinds, Valentino’s retail segment, with its robust e-commerce platform, stood out as a beacon of strength. This sector experienced growth of 5% year-over-year, contributing to a substantial 70% of the brand’s total sales. In their official statement, Valentino clearly indicated a shift towards prioritizing directly operated stores while scaling back their wholesale channels—this latter sector saw a reduction of approximately 20% in 2024. This decision reflects a strategic move towards more selective partnerships and a desire to connect directly with consumers.
Geographically, Valentino saw promising growth in Japan, the Middle East, and the Americas. Yet, the story wasn’t quite as bright in Europe and certain parts of Asia, especially during the latter half of the year, where results faltered.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) took a hit, dropping 22% to €246 million. According to the consolidated financial report approved by the board, this decline was partly influenced by the impact of IFRS 16, which accounted for one-off expenses.
E-commerce, on the other hand, has continued its surge, making up 15% of direct sales in 2024 compared to 11% in 2023, showcasing a remarkable 37% increase when adjusted for constant exchange rates. The beauty and fragrance lines, managed through a partnership with L’Oréal, were another positive note, achieving a 51% growth year-over-year.
Valentino’s CEO, Jacopo Venturini, expressed optimism despite the numbers, highlighting what he described as “significant progress” throughout the year. This was especially evident after Alessandro Michele took the reins as creative director, with his first collections debuting in the latter part of 2024. Venturini remarked, “Alessandro’s exceptional vision reinterprets the past with his unique perspective, blending it beautifully with his creative expression.”
In addition to focusing on financial metrics, Valentino placed considerable emphasis on sustainability and workforce welfare. In 2024, the brand successfully maintained its Gender Equality Certification for a second consecutive year. They also introduced a progressive employment contract for retail staff, along with a new productivity bonus for employees in Italy—aimed at enhancing work-life balance and overall welfare conditions.
Valentino has reinforced its commitment to sustainability governance through the implementation of new training initiatives, dedicated committees, and cross-functional teams that are targeted at driving long-term positive effects.
Acquired in 2012 by Mayhoola, an investment firm associated with Qatar’s royal family, Valentino continues to be in a state of evolution. Mayhoola’s portfolio also includes other luxury brands like Pal Zileri, Balmain, and the Turkish department store chain Beymen. In a significant move, French luxury group Kering acquired a 30% stake in Valentino for €1.7 billion in July 2023, with plans to potentially take full control by 2028.
In a world where the fashion landscape seems increasingly uncertain, Valentino’s journey reflects not only the challenges faced by a legacy brand but also its enduring commitment to innovation and ethical practices, making it a compelling player to watch in the luxury market.
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