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Valentino says Greater China market ‘still shaky’ after Covid-19

Italian luxury brand Valentino announced on Tuesday sales in 2022 rose to EUR 1.42 billion (USD 1.58 billion) for the 12 months through December 31, a 10 percent increase in constant exchange rates, despite a “still shaky” Greater China market.

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Controlled by Qatari investment vehicle Mayhoola, Valentino also reported EBITDA of EUR 337 million in 2022, up 18 percent over the prior-year period.

By region, Europe, North America, and the Middle East lead the way, while Greater China was “still shaky” tied to Covid, said the Roman fashion house.

By channel, Valentino reported 21 percent growth in its directly operated stores network, including e-commerce, while the wholesale channel registered a 6 percent decrease.

Valentino, led since 2020 by CEO Jacopo Venturini, has been “reducing the wholesale activity to focus only on a selected partnership distribution”, it said in a statement.

Last year, Valentino focused its retail expansion on China, opening three stores between September and December at SKP in Chengdu, for menswear, ready-to-wear and bags, and shoes, respectively, and in September a new store was opened in Shenzhen Bay MixC.

Directly operated shops accounted for 62 percent of sales in 2022, compared to 54 percent in 2019, it added.

In 2022, Valentino also commenced its e-commerce internalisation program starting with Japan, in addition to going fur-free, and cancelling its RedValentino line, aimed more at younger customers, with the fall-winter 2023-24 season.