Valentino Reports Drop in Operating Profit

ROME (Reuters) – Italian fashion house Valentino’s operating profit dropped 22% last year, the company announced on Friday, amid a slowdown in global demand for high-end goods, particularly in Asia.

European luxury groups have been relying on wealthy Americans to boost growth, given the bleak outlook for China. However, following President Donald Trump’s tariff policy, the sector is preparing for what could be its longest slump in years.

Valentino noted that one-off costs also contributed to the decline in operating profit, which fell to 246 million euros ($280 million) in 2024, as it continues to invest in directly-managed stores.

Revenue decreased 2% at constant exchange rates to 1.31 billion euros, despite strong sales in Japan, the Middle East, and the Americas.

The company reported that online sales increased 5% compared to the previous year, aligned with its goal to enhance its e-commerce business.

“Our work has taken a decisive step with the arrival of Alessandro Michele as our new Creative Director,” stated Chief Executive Jacopo Venturini.

Valentino hired the former Gucci designer in March last year after the departure of creative director Pierpaolo Piccioli, who held the position for 25 years.

In 2023, Gucci owner Kering bought a 30% stake in Valentino, with an option to acquire the entire company’s share capital by 2028.

Note: This story has been corrected to state billion instead of million in paragraph 4.