Valentino: Luxury fashion house Valentino reports a 22% drop in profits in 2024

Italian luxury fashion house Valentino reported a 22% drop in operating profit last year on Friday as the luxury sector faces slowing demand for high-end products, particularly in Asia. European luxury groups were counting on wealthy Americans to revive growth in the face of the Chinese slowdown, but they are now bracing for a long crisis after President Donald Trump imposed a wave of tariffs. Valentino said that non-recurring costs had hurt its operating profit, which amounted to €246 million in 2024, as the group continued to invest in stores managed by the brand itself. Revenue fell 2% at constant exchange rates to €1.31 billion despite strong sales in Japan, the Middle East, and the Americas, the Rome-based group said. Online sales rose 5% from the previous year, Valentino added. "Our work has taken a decisive turn with the arrival of Alessandro Michele as our new creative director," Jacopo Venturini, the group's director, said in a statement. Valentino hired the former Gucci designer in March last year following the departure of Pierpaolo Piccioli, who had held the position for 25 years. In 2023, Gucci's parent company, Kering, acquired a 30% stake in Valentino with the option to acquire the entire company by 2028. (Written by Giulia Segreti, French version by Pauline Foret, edited by Blandine Hénault) European luxury groups were counting on wealthy Americans to revive growth in the face of the Chinese slowdown, but they are now bracing for a long crisis after President Donald Trump imposed a wave of tariffs. Valentino said that non-recurring costs had hurt its operating profit, which amounted to €246 million in 2024, as the group continued to invest in stores managed by the brand itself. Revenue fell 2% at constant exchange rates to €1.31 billion despite strong sales in Japan, the Middle East, and the Americas, the Rome-based group said. Online sales rose 5% from the previous year, Valentino added. "Our work has taken a decisive turn with the arrival of Alessandro Michele as our new creative director," Jacopo Venturini, the group's director, said in a statement. Valentino hired the former Gucci designer in March last year following the departure of Pierpaolo Piccioli, who had held the position for 25 years. In 2023, Gucci's parent company, Kering, acquired a 30% stake in Valentino with the option to acquire the entire company by 2028. (Written by Giulia Segreti, French version by Pauline Foret, edited by Blandine Hénault)