Valentino: sales up 15% in 2022
Valentino has continued to build on its success in 2022. The house achieved a turnover of 1.419 billion euros in 2022, up 15% on 2021. Growth was 10% at constant exchange rates. The Roman luxury label also improved its profitability with an operating profit of 121 million euros, which rose by 30% year-on-year, and a gross operating surplus of 337 million, up 18%.
These positive results are the fruit of a major refocusing on the house's direct sales network. Last year, Valentino's direct sales including its own shops and e-shop, increased by 21%, while wholesale sales decreased by 6%. The number of multi-brand retailers has been reduced, as the brand prefers to "focus exclusively on distribution through selected partners," it said in a statement.
In this context, the share of sales recorded in its direct store network alone has increased from 54% in 2019 to 62% in 2022. This increase is due "to the strategy developed by Jacopo Venturini, Valentino's CEO, from June 2020, which has led the Roman house to double-digit increases in turnover after years of single-digit growth," the company said.
Present in 100 countries, the company plans to have 221 directly operated shops by the end of 2023. In 2022, it opened 24 direct stores and relocated seven units, while this year 23 openings are in the pipeline and 15 units will be relocated. Notably, a new layout concept, emphasising the customer experience, was developed and inaugurated last October in Jeddah in Saudi Arabia, Geneva in Switzerland and Florence. Major projects for the current year include the relocation of the flagship stores in Paris to Avenue Montaigne in the spring and in New York to Madison Avenue in the fall.
The brand has taken control of its e-commerce internally
Valentino's online store "is gaining momentum and making steady progress," the house also said, without giving any figures. The company has taken control of its e-commerce business, which was previously managed by Yoox-Net-a-Porter, in-house. The transition began in early 2022 in Japan, followed by the US and the rest of the world. This allowed the brand to "accelerate omnichannel integration to capture new opportunities, achieve more effective local planning and adaptation, and strengthen customer interaction in both consolidated and new markets."
Geographically, the strongest markets last year were Europe, North America and the Middle East, while the Greater China region "was characterised by Covid-related uncertainty," notes the group owned by Qatari investment fund Mayhoola.
Beyond the retail channel, Valentino has repositioned itself around its core brand, with style led by Pierpalolo Piccioli, ending its youthful REDValentino line with the autumn-winter 2023/24 season. Fur was also banned from the collections. This has resulted in a loss of revenue of €100 million, which was the turnover in 2019 of these two activities combined. This will not prevent turnover from growing in 2022.
Accessories continue to dominate the brand's sales, followed by ready-to-wear. The label also pointed out the good results it achieved in other categories, such as perfume and beauty, managed under licence by L'Oréal, which saw its sales jump by 40% in 2022. It also mentioned its eyewear line also managed under licence by Akoni, which is in the process of repositioning itself in the high-end segment.
Copyright © 2023 FashionNetwork.com All rights reserved.