Valentino’s Physical Stores Drive 10 Percent Increase in Sales — Retail Bum

Valentino reported an 18% growth in its 2022 profit margins, with sales rising by 10%.

The Italian luxury fashion house generated $1.56 billion in revenue last year, with sales at its physical stores operated directly by Valentino, including online ones, growing twice as fast as the company’s overall revenue.

The brand’s directly operated shops contributed 62% of sales in 2022 compared to 54% in 2019. Meanwhile, Valentino registered a 6% decline across the wholesale channel as it has been “reducing the wholesale activity to focus only on a selected partnership distribution.”

“These results are fully in line with our strategy of rebalancing wholesale versus retail by increasingly reducing the wholesale activity to focus only on working with selected partners that reflect our brand values and sustain our business strategy and vision,” said Chief Executive Officer Jacopo Venturini. “An external eye and opinion remain important, a dialogue is always interesting and we don’t want to give that up.”

Overall, the brand’s core profit was up by nearly 20% to $372.5 million, while operating profit increased by 30% to $133.7 million.

The brand saw particularly strong growth across Europe, North America, and the Middle East…