Valentino reported a 5 percent decrease in 2023 revenues to EUR 1.35 billion, partially offset by solid direct sales via its store network.
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Direct sales, which include e-commerce, increased by 3 percent in 2023, helped out by solid sales in Asia Pacific and Japan.
The company said directly operated retail, including e-commerce, generated 66 percent of sales in 2023 compared to 62 percent in 2022.
Wholesale revenues dropped by 12 percent in line with the strategic rationalisation of the brand’s presence in the channel. The Italian maison’s perfume and beauty line operated by L’Oréal surged, with turnover jumping 42 percent.
During the 12 months, earnings before interest, taxes, depreciation and amortization, including the IFRS16 impact, amounted to EUR 314 million, a 7 percent decrease compared to 2022. Operating profit fell 18 percent to 99 million euros.
“Our strategy of rebalancing wholesale versus retail was implemented successfully with our DOS network,” said chief executive officer Jacopo Venturini.
“This allows us to provide our clients with unique emotional and immersive experiences, creating stronger brand loyalty to ultimately enhance a sense of community.”
As of December 31, Valentino had 264 stores in 207 locations, of which 232 were directly operated.
Last month, Valentino announced the appointment of former Gucci creative director Alessandro Michele to the role of creative director, effective April 2.
Valentino plans to sit out the upcoming menswear and haute couture seasons ahead of Michele’s debut, which is set to take place during the women’s ready-to-wear season in Paris in September.
The switch up at Valentino comes several months after giant French luxury group Kering acquired a 30 percent stake in Valentino, with the intention to eventually acquire full control of the Roman marque.
Coinciding with the Valentino earnings update, Kering announced a slump in first quarter sales, citing sluggish Gucci revenues for the three months, especially in Asia Pacific.