According to a media report, the Italian fashion house Valentino increased its sales by 15 percent in 2022.
The Rome-based fashion house generated sales of 1.42 billion euros in the 12 months ended December 31, 2022, industry magazine Women’s Wear Daily (WWD) reported on Monday. In the previous year it was still 1.23 billion euros. At constant exchange rates, revenue grew 10 percent year-on-year.
The company’s earnings before interest, taxes, depreciation and amortization adjusted for special effects amounted to 337 million euros, which corresponds to an increase of 18 percent compared to the previous year. The operating result grew by 30 percent to 121 million euros.
“After years of single-digit growth, we’ve managed to cross the line,” Managing Director Jacopo Venturini told WWD.
Optimized wholesale business
Broken down by sales channel, sales from the company’s directly operated stores, including e-commerce, increased 21 percent, while wholesale sales fell 6 percent.
Venturini said the results are “fully in line” with the strategy to rebalance the relationship between wholesale and retail by progressively reducing wholesale activities and focusing on collaboration with selected partners.
The sales of the self-operated retail business accounted for 62 percent of the total sales in 2022. Before the pandemic, the proportion was 54 percent in 2019.
The retail share of the brand’s sales is currently 67 percent and is expected to increase to 80 percent by 2025 or 2026.
Last year, Valentino opened a total of 24 stores and relocated seven. In the current year, the brand intends to open 23 more directly operated stores and relocate 15 stores to other locations.
This translated post previously appeared on FashionUnited.com