Valentino sees further slowdown in 2019

By

Dominique Muret

Published
Apr 10, 2020

After years of double-digit growth, Valentino’s progress has been decelerating since 2017, and the trend continued in 2019. Nonetheless, thanks to its recognisable high-end positioning, the Roman luxury house, which was purchased by Qatari investment fund Mayhoola in 2012, is still managing to keep ticking over, achieving revenues of 1.233 billion euros last year, up 2.4%.

In its brief release, the brand, whose collections are designed by creative director Pierpaolo Piccioli, did not report its growth on a comparable basis, nor did it provide details concerning other financial indicators. In 2018, the company's revenues totalled 1.194 billion euros, increasing 2.9% compared to 2017, when Valentino's sales rose 5% to 1.16 billion euros. 

The negative impact of the the luxury industry crisis in Hong Kong, related to the pro-democracy protests that stretched over a long period last year, affected Valentino, which boasts 11 points of sale in the city, through lost revenues of 20 million euros. However, the company highlighted that, despite this significant crisis, the house "recorded positive growth elsewhere in the world, with stable performances limited to North America and Europe."

The brand emphasised that "in an economy characterised by uncertainty," the performance of its online sales was particularly strong, rising 56% and "confirming the fundamental role of the digital channel for the business' exponential development." The company also highlighted that "in the current socio-economic context, Valentino is in the process of strengthening its online experience, placing it at the core of its strategy."
 
The brand signed off on a distribution and delivery partnership with luxury e-commerce platform Yoox Net-A-Porter (YNAP) in 2017, with the two businesses pooling their digital sales resources through a multichannel interface named "Next Era." The solution allows consumers to access the stock available both in Valentino stores and the eight YNAP distribution centers, thereby cutting delivery times. 

The brand, which has some 212 stores around the world, opened flagships in Toronto and Beijing last year. China is one of the company's largest markets. 

In 2020, Valentino also strengthened its management team, creating the role of chief brand officer and confiding it to Gucci alum Alessio Vannetti, while former president for the Asia Pacific region at Fendi, Marco Giacometti, was appointed to the newly created position of chief commercial officer (CCO) and should step into the role in the near future.
 
As for the rumours concerning the possible sale of Valentino by Mayhoola, CEO Stefano Sassi denied them once again at an event organised by the Corriere della Sera last month.