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In 2011, Valentino was acquired by Mayhoola for Investments for $730 million. The label's sales in 2012 hit a relatively meager $640 million. Now, fast forward just three years, and Valentino has already topped $1 billion in annual sales, WWD reports.
Valentino reached the figure after astronomical year-by-year growth. Revenues jumped a full 48% percent in 2015; going from $880.4 million in 2014 to $1.09 billion last year.
When Mayhoola for Investments first took over the brand, one of its goals was to hit the one billion mark five years in. The firm is already two years ahead of schedule. "The one billion figure is symbolic; we have arrived at a dimension and critical mass that the brand did not have, with significant cash and profitability," Valentino's CEO Stefano Sassi tells WWD.
As for how the label got here, it invested $275 million to $330 million into its retail store network in order to "close the gap with competitors," Sassi says. The label has also focused on building up its wholesale network so Valentino could be sold in high-quality boutiques.
Also, the brand's creative directors, Maria Grazia Chiuri and Pierpaolo Piccioli, were appointed just a couple years before the ownership change and have made the house's accessories and footwear must-have items. Think Valentino's Rockstud design, which is applied to heels, sandals, flats, and purses. The brand has also made the red carpet a priority.
Moving into the future, Valentino says it sees the value in rejecting the "see now, buy now" system that is taking the fashion world by storm. However, Sassi also admits he is "ready to evaluate alternatives." Adding, "For sure we want to innovate at a digital level. That is a revolution and we are aware of the opportunities."
Sassi also says that an IPO is probably on the horizon, but it won't come until next year at the earliest.