ROME, April 19 – Italian luxury fashion house Valentino reported a 22% drop in operating profit for 2024, citing a slowdown in global demand for high-end goods and one-off costs tied to expanding its directly-managed retail network.
Operating profit fell to 246 million euros ($280 million) as the company faced weaker luxury consumption, particularly in Asia, and continued its push into own-store operations. Revenue declined 2% at constant exchange rates to 1.31 billion euros, the Rome-based brand said on Friday. Despite the broader sector headwinds, Valentino saw resilient demand in Japan, the Middle East, and the Americas, while online sales rose 5%, aligning with its strategy to grow e-commerce channels.
“Our work has taken a decisive step with the arrival of Alessandro Michele as our new Creative Director,” Chief Executive Jacopo Venturini said in a statement. Michele, the former Gucci creative head, was appointed in March 2024 following the departure of Pierpaolo Piccioli, who held the role for 25 years.
Luxury groups across Europe are grappling with tepid demand and geopolitical uncertainty, including lingering trade tensions under former U.S. President Donald Trump’s tariff policies. Many are now looking to markets beyond China, where the recovery has been slower than expected. In 2023, French luxury conglomerate Kering acquired a 30% stake in Valentino, with an option to purchase full ownership by 2028.
