Italian luxury fashion house Valentino reported a 22 per cent drop in operating profit last year, attributing the decline to a global slowdown in demand for luxury goods, particularly in Asia.
With the outlook in China remaining weak, European luxury brands have increasingly turned to affluent American consumers to drive growth. However, the industry is now bracing for what could be its longest downturn in years, exacerbated by President Donald Trump’s tariff policies.
Valentino pointed out that operational profit dropped to US $ 280 million in 2024 as a result of one-time costs, particularly those associated with ongoing investment in directly run stores. At constant exchange rates, the company’s revenue decreased by 2 per cent to US $ 1.49 billion, despite strong sales in the Americas, the Middle East, and Japan.
In line with its strategic aim to strengthen e-commerce, Valentino reported an increase of 5 per cent in online sales compared to the previous year.
Chief Executive Jacopo Venturini highlighted that the company has taken a significant step forward with the appointment of Alessandro Michele as its new Creative Director.
