Valentino, the esteemed luxury brand owned by Qatari investment fund Mayhoola, faced a slowdown in growth in 2019. However, despite this challenge, the company managed to maintain its position as a high-end fashion house and achieved revenues of 1.233 billion euros, representing a 2.4% increase compared to the previous year.

The brand’s creative director, Pierpaolo Piccioli, did not provide detailed financial indicators or growth figures in the latest release. But in 2018, Valentino’s revenues reached 1.194 billion euros, a 2.9% increase compared to the previous year. Additionally, in 2017, sales rose by 5% to 1.16 billion euros.

Valentino faced difficulties due to the crisis in the luxury industry in Hong Kong, which was exacerbated by the prolonged pro-democracy protests. As a result, the brand experienced a loss of 20 million euros in revenue, as it has 11 points of sale in the city. However, the brand managed to achieve positive growth in other regions, with stable performances in North America and Europe.

Despite the challenges faced by the luxury industry, Valentino highlighted the strength of its online sales, which grew by an impressive 56%. This online channel proved to be crucial for the brand’s development, and the company emphasized the significance of its digital strategy in the current socio-economic context. Valentino remains focused on enhancing its online experience as a key driver for future growth.

Valentino has partnered with luxury e-commerce platform Yoox Net-A-Porter (YNAP) to optimize its distribution and delivery processes. Through their multichannel interface, “Next Era,” customers can access the available stock in Valentino stores and YNAP distribution centers, resulting in faster delivery times. The brand opened flagship stores in Toronto and Beijing last year, highlighting the importance of the Chinese market, which remains one of the largest markets for Valentino.

To strengthen its management team, Valentino appointed Alessio Vannetti, a former Gucci executive, as the chief brand officer. Additionally, Marco Giacometti, previously the president for the Asia Pacific region at Fendi, was appointed as the chief commercial officer (CCO).

Contrary to rumors of a possible sale, CEO Stefano Sassi firmly denied any intentions of selling Valentino at an event organized by the Corriere della Sera last month. This statement reinforces the brand’s commitment to its long-term growth and independence.

Valentino’s ability to navigate through a slowdown in growth and adapt to the changing luxury industry landscape demonstrates its resilience and strategic approach to maintaining a strong position in the market. With a focus on online sales and expanding its presence globally, Valentino is well-positioned for continued success in the coming years.

Helpful Links:
1. Online Sales in Luxury Fashion: The Rise and Importance: https://www.retaildive.com/ex/mobilecommercedaily/online-sales-in-luxury-fashion-the-rise-and-importance
2. How Luxury Brands are Navigating the Digital Revolution: https://www.forbes.com/sites/jonbird1/2019/09/25/how-luxury-brands-are-navigating-the-digital-revolution