Valentino wraps up 'exceptional' 2015
Valentino reached close to €1 billion in 2015. The fashion label's CEO, Stefano Sassi, stated to Italian financial daily Il Sole 24 Ore, a few days ahead of Valentino's show scheduled on Tuesday 9th March in Paris, that "For the brand, 2015 was an exceptional year: revenue increased by 48% to €987 million, EBITDA skyrocketed, nearly doubling and reaching €180.2 million, compared to €98.5 million previously, and was equivalent to 18.3% of total sales, compared to 14.8% in 2014."
"EBIT grew from €43 million in 2014 to €104.4 million a year later. And for this year, despite the fact that markets are troublesome, the minimum objective is still that of double-digit growth," further stated the boss of the Italian luxury label, which was acquired in 2012 by Mayhoola, an investment company belonging to the Qatar royal family. At the time, Valentino's revenue was €370 million.
According to Stefano Sassi, four factors explain these results: store growth in like-for-like terms, a 20% rise by a retail network which now accounts for 55% of total sales; the excellent results constantly generated by the wholesale channel; the opening of between 20 and 30 new stores in 2015; and finally, as for all fashion labels, a favourable exchange rate effect.
The other key factor of success for Valentino was the accessories category, whose weight rose from 30% of revenue a few years ago to 55% today. Menswear, "a tiny segment only three years ago, ensures significant opportunities for the future," and was worth €100 million in 2015, exactly like the Red Valentino youth line.
The group operates 160 mono-brand stores and generates 90% of sales outside Italy. Between 2013 and 2015 it invested significantly in the retail channel, to the tune of nearly €250-€300 million. This year, the pace of new openings is expected to slow down.
Valentino recently inaugurated a flagship store in London's Bond Street, and is planning other openings in the second part for the year, notably in Germany, in Honolulu, USA, and in Tokyo's Omotesando district.
As for the group's Stock Exchange flotation, asked for by Mayhoola, it is not in the cards for 2016.
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