Italian fashion house Valentino is navigating rougher waters. The brand reported a 22% drop in operating profit for 2024, landing at €246 million, as luxury demand softened, particularly in Asia, once considered a growth engine for high-end brands.
Despite solid sales in Japan, the Middle East, and the Americas, total revenue dipped 2% at constant exchange rates to €1.31 billion. The company points to one-off costs and continued investment in its directly operated stores as key profit pressures.
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With China’s luxury appetite waning and geopolitical uncertainty, including lingering effects from U.S. trade policy under Donald Trump, European brands are increasingly relying on wealthy American shoppers. But even that fallback is showing cracks.
One bright spot: e-commerce. Online sales rose 5% year-over-year, a modest but meaningful gain as Valentino works to strengthen its digital presence.
CEO Jacopo Venturini struck a hopeful tone, spotlighting the brand’s creative reboot under Alessandro Michele. The former Gucci star, known for his eclectic and maximalist style, stepped into the role in March 2024 after the departure of Pierpaolo Piccioli, who defined Valentino’s identity for over two decades.
All eyes are now on Michele’s vision for the brand—and whether it can reignite momentum in a slowing global market.
Meanwhile, the company’s long-term path may soon shift. In 2023, Kering acquired a 30% stake in Valentino, with an option to buy full ownership by 2028. As luxury groups recalibrate amid cooling demand, strategic moves like this could shape the next era of fashion power plays.
