No sale by Mayhoola and no Ipo, but growth projects for the brand of 1.146 billion euro (+ 7%)
Valentino does not sell, rather plays doubling. The maison, Mayhoola for investments satellite and the center of rumors that wanted it ready for a change of hands, aims to grow in the East, strong of a 2018, “That will close in growth, with percentages very similar to 2017”, has said in an interview with MFF CEO Stefano Sassi, recalling that last year saw the turnover of 7% to 1,164 billion euro.
East aside, where the label has been protagonist in recent days with the Valentino Tky project, 2019 will see the development of accessories with investments on the product platform, the landing in force in Australia and the upgrading in China. In addition to the baptism of the agreement with L’Oréal that will bring the brand, entrusted to the creativity of Pierpaolo Piccioli, to relaunch the fragrances and debut in the world of cosmetics with a project ah hoc. “When he joined the group’s perimeter, Valentino was worth 390 million euros, today he broke more than 1.1 billion. And we still have ample room for growth, “the CEO then said.
Here, below, what the CEO of Valentino said about it.
Let’s start from the news … In recent weeks there have been rumors of a possible sale …
All nonsense, no disposal, rather solid development plans and the intention to continue a journey. It’s the bankers’ fault, it’s just market speculation. Around there are money, and many, big groups who want to invest. But our shareholder has always declared that his is a long-term investment and that he wants to increase his presence in fashion, and Valentino is a fundamental asset to create a pole in this sense. Mayhoola has acquired two realities like Valentino and Balmain with high growth potential. Valentino has tripled the turnover. Balmain records stellar growths. No disposal, at most acquisitions of other realities. But not immediately.
The idea of an IPO has also been ventilated …
The quotation was the evaluation of a project and of the potential of the brand and of how it was seen by the market. Today the file is stopped. The listing will not take place either immediately or in the future.
So how do you see the future of the fashion house? What will be the growth drivers you are aiming for?
In numbers it is difficult to speak at this moment considering the macro-economic situation. More than turnover, we have set up a development road-map. First of all investments in the product. To date we have ample room for growth on handbags and ready-to-wear, both men and women (the turnover of the maison sees clothing at 30%, accessories at 50% and the remaining share is generated by licenses, ed). In particular on leather goods we are continuing to strengthen our production platform totally made in Italy (today the brand has a production site for bags in Lombardy, two companies for shoes in Tuscany and a reality dedicated to sneakers in the Marche as well as a company of metalworking accessories, Pescini, in Tuscany, ed.). We will invest in this direction with ad hoc acquisition.
Next year you have the beauty project under construction …
Yes, 2019 will see us enter, in partnership with L’Oréal, in an important way in this arena. The project will see the launch of the fragrances and, in turn, we will work on cosmetics. We are happy to have an important partner, with broad shoulders, for a project on which we have high expectations.
At the level of the markets, where did you target your goal?
On Australia, a market where we debuted in Melbourne and next year we will open in Sydney; there is ample room for growth both thanks to Chinese tourists, and thanks to local customers with high spending power. 2019 will be a year focused on retail. We have about 20 openings planned. An important store will be in Toronto and two major openings will be in China and in particular Beijing, with stores in China world mall and Sanlitum. At this time we are cautiously looking at the Chinese market, especially after the performance of the last two months. We are sure it is a temporary phase also because the East has always given us satisfactions. Today, Greater China represents the largest share of our retail turnover, around 50%. But there are still margins for growth. Both with the same perimeter and with new stores, given that today we have only 15 boutiques in China, about ten in Hong Kong and four in Macao. In Japan, however, we want to grow at the same perimeter.
Japan, precisely, why did you choose this country for an event like Valentino Tky?
Because we wanted to complete a path. We have worked to change the perception of the brand by making it more cool. We have made big investments, with the stores of Omotesando and Ginza. And this pop-up, in addition to the parade broadcast