Valentino swung to a €103 million loss — and its shareholders put in more money

Valentino’s shareholders have committed additional financial support for 2026 after the Italian fashion house swung to an operating loss last year and debt increased.

Valentino is controlled by Qatar-backed Mayhoola, which owns 70% of the company, while French luxury group Kering holds the remaining 30% and has options to increase its stake to 100% by 2029.

“In 2025, capital injections totalling €100 million were made and further financial commitments for 2026 were formalised,” the group said in a filing. Last year shareholders had committed to a capital injection of up to €150 million as part of a debt renegotiation that revised financial covenants based on the leverage ratio and introduced quarterly reporting requirements with banks.

The house, which hired Alessandro Michele as creative director in 2024, has been hit by the broader slowdown in luxury demand. Revenues fell 15% to €1.12 billion, with sales declining across all regions, particularly in Japan and Asia-Pacific. Operating profit of €31 million in 2024 turned into a loss of €103 million in 2025.

Net debt under IFRS 16 rose to €1.13 billion at the end of 2025 from €1.08 billion a year earlier. Excluding lease liabilities, net debt increased to €472 million from €377 million.

By category, fashion jewellery and fragrances showed resilience, while leather goods and footwear declined overall. The contribution of women’s ready-to-wear to total revenue fell to 24% from 25% due to weak sales in directly operated stores.

The group said it aims to continue cost control, improve process efficiency and protect brand value.