Valentino’s 2024 Earnings Fall Amid Market Headwinds and Strategic Reset
Key Takeaways:
• Valentino reported a 3% revenue decline in 2024, totaling 1.31 billion euros.
• EBITDA fell 22% to 246 million euros, affected by non-recurring expenses.
• Direct retail and e-commerce sales grew 5%, now making up 70% of revenues.
• Beauty and fragrance revenues (licensed to L’Oréal) increased 51%.
• Performance was strong in the Americas, Japan, and the Middle East, but weaker in Europe and Asia.
• Alessandro Michele’s debut designs began arriving in stores, marking a new chapter for the brand.
Valentino closed out 2024 with a 3 percent dip in total revenues, reporting 1.31 billion euros amid what it described as a “challenging and complex landscape.” The Roman luxury house also saw earnings before interest, taxes, depreciation, and amortization (EBITDA) decline by 22 percent to 246 million euros, citing non-recurring items as a key factor.
While the broader luxury market showed signs of slowing, Valentino leaned into direct retail and digital channels. Its own stores and e-commerce platforms posted a 5 percent revenue increase and now represent 70 percent of total sales. E-commerce alone jumped 37 percent year-over-year, accounting for 15 percent of direct sales compared to 11 percent in 2023.
Wholesale continued to shrink, falling by about 20 percent as the brand emphasized “more focused distribution” through selective partnerships. Meanwhile, beauty and fragrance—licensed to L’Oréal—remained a bright spot, up 51 percent in revenues.
Performance varied by region: the Americas posted positive growth, while Japan and the Middle East also performed well. In contrast, Europe and broader Asia experienced softer demand, particularly in the second half of the year.
Despite these financial headwinds, Valentino pointed to strategic progress, including the appointment of Alessandro Michele as creative director in March 2024. His debut designs, dubbed Avant les Débuts for the Resort 2025 collection, landed in stores in the fall. CEO Jacopo Venturini praised Michele’s ability to reinterpret the brand’s heritage while shaping a new creative era, describing 2024 as a year of both “challenge and progress.”
Looking ahead, Valentino plans to publish its 2024 Sustainability Report in May 2025, offering further transparency into its environmental impact and corporate responsibility goals.