Will Alessandro Michele revive Valentino's dipping sales?

If it was unclear as to why Valentino swapped out its beloved Creative Director Pierpaolo Piccioli for the extravagant ex-Gucci designer Alessandro Michele, all has now been revealed. The luxury house has today announced that its total revenues for 2023 totalled £1.16 million (€1.349 million), down by 5%.

Direct sales, which include e-commerce, increased by 3% in 2023. The growth was mainly driven by positive performances in Asia Pacific and Japan, while Europe experienced a challenging second half of the year.

Wholesale revenues dropped by 12%. As a result, directly operated retail, including e-commerce, generated 66% of sales in 2023 compared to 62% in 2022.

It reported an EBITDA of £270 million (€314 million), a 7% decrease compared to 2022. The operating result for the year was £85 million (€99 million), an 18% decline compared to the previous year.

On the contrary, Valentino’s beauty and fragrance business, licensed to L’Oréal, continued full-steam ahead with a robust 42% jump in 2023. E-commerce, which underwent a global internalisation process in 2023, accounted for 11% of sales.

Last month, Pierpaolo Piccioli, who put Valentino Pink on the map, announced that he was parting ways with the storied Italian house after 25 years.

He was succeeded by Alessandro Michele, known for his 'more is more' aesthetic. Michele was credited with reviving the Kering flagship brand's fortunes during his seven-year tenure at the helm of Gucci. We await to see if he has the same impact at rival Valentino.

The maximalist's first show for the classical Maison Valentino will show during the Spring/Summer 2025 season. In the meantime, Valentino wiped its fashion show schedule clean, confirming that it will no longer be present at Paris Men's Fashion Week and Haute Couture Week.