High-end Italian fashion maison Valentino reported sales losses for the year 2020, despite an uptick from its mainland China market and an increase in digital sales.
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Online sales, which accounted for 14% of total revenues, climbed 62% at Valentino and mainland China retail sales rose 44% in 2020; helped by Valentino’s own virtual boutique, which saw its sales rise 77% in the period. By category, ready-to-wear and accessories, which represented 36% and 63% of the company’s business volume, respectively, also accelerated during the 12 months, said the Roman company, despite actual figures being withheld.
However, the effects of the Covid-19 pandemic saw total revenues plunge 28%, or 27% in constant currencies.
For the year ended 31st December, 2020, Valentino’s total sales fell to US$1.07 billion, compared with US$1.47 billion in 2019, on the back of travel restrictions and lockdowns which impacted physical retail.
“The financial results of 2020 underscore a sector that was strongly penalized by the global health emergency. Today more than ever, it is fundamental to concentrate on our omnichannel business with a strong focus on innovation and advanced digital technologies,” said Rachid Mohamed Rachid, Valentino’s Chairman.
“The first pre-collection, Diary Spring 2021, launched during the brand’s new course, has positively impacted global business. This confirms once again the strong interest from our customers in our products, a true expression of the highest craftsmanship, creativity and quality. Our aim is to be increasingly more streamlined and flexible, adapting effortlessly to the changing needs of the market in a quest for new opportunities,” continued Rachid.
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Founded in 1960 in Roman by its namesake designer and founder, Valentino Garavani, the couture house is today controlled by the Qatar-based Mayhoola, which also owns French fashion house, Balmain, and Pal Zileri.