Rome (Reuters) – The Luxury Italian House Valentino reported a 22% drop in operational profit on Friday last year while the luxury sector faces a slowdown in demand for high -end products, especially in Asia.
European luxury groups were counting on wealthy Americans to revive growth in the face of Chinese slowdown, but they are now preparing for a long crisis after the taxation of customs duties by President Donald Trump.
Valentino clarified that non-recurring costs had penalized its operational profit, which amounted to 246 million euros in 2024, the group having continued to invest in stores managed by the brand itself.
Turnover has accused a decrease of 2% at constant exchange rates, reaching 1.31 billion euros despite the solidity of sales in Japan, the Middle East and in the Americas, said the group based in Rome.
Online sales increased by 5% compared to the previous year, added Valentino.
“Our work has taken a decisive turn with the arrival of Alessandro Michele as our new creative director,” said Jacopo Venturini, the group’s director, in a statement.
Valentino hired the former Gucci stylist in March of last year after the departure of Pierpaolo Piccioli, who had held the position for 25 years.
In 2023, Gucci’s parent company, Kering, acquired a 30% stake in Valentino with the option of acquiring all of the company’s capital by 2028.
(Written by Giulia Segreti, Pauline Foret, edited by Blandine Hénault)
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