2010 marked, for the luxury industry, the year of recovery from the crisis and the first half of 2011 confirms the positive trend, according to Fashion and Luxury Insights 2011, the annual survey conducted by SDA Bocconi and Altagamma on the 2010 financial statements of international and listed fashion and luxury companies, presented this morning in Milan, and the preliminary data on 2011 collected by SDA Bocconi.
The report analyzes the financial statements of 67 listed and internationally known companies with a turnover of more than 200 million euros, while the preliminary data for 2011 refer to 48 companies.
The turnover of the companies surveyed increased by 10,9% in 2010 (-5,3% in 2009, the sector's annus horribilis) and the positive figure is confirmed by the brilliant dynamics of the profitability of investments (Roi at 12,4% against 8,3% in 2009), the profitability of own capital (jumped to 16,5% from 3,5% in 2009), average operating result (Ebit at 10% against 7% in the previous year) and gross operating margin (13,6% compared to 11,1 ,8,1%). The average cash flow generation capacity fell to 11,6% of turnover (2009% in 18,2), despite the continued decrease in the weight of working capital, now equal to 39% of turnover. The average collection times remained unchanged at XNUMX days.
“The positive trend of 2010 is confirmed, and indeed largely strengthened, by the first data of 2011”, he states Paola Varacca Capello of SDA Bocconi, co-author of the report, “with one exception. The growth of investments to 6,1% of turnover in 2010 from 4,9% in 2009 and that of investments in core business on depreciation to 105,2% from 83% indicated an intensification of investments in support of the core business and future growth, but the first data of 2011 denounce a decline in investments to 3,2% of turnover. However, the rate of growth in turnover is increasing, which in the first half of 2011 stood at 12,4%”.
“The positive results of companies,” he says George Brandazza, co-author of the research, “I'm in part due to the market recovery, but are in part the consequence of company policies in recent years, characterized by the pursuit of operational efficiency and more careful management of working capital”. The attention to operational efficiency is confirmed by the limited growth in the number of stores: +2%, i.e. better than 1% in 2009 but still far from 9% in 2008.
"Branded mass market and retailer companies performed less well in 2010 than top-of-the-range companies" he notes Armando Branchini, general secretary of the Altagamma Foundation and co-author of the study. “Five of the top 10 performers in terms of turnover increase are high-end companies and among these are the recently listed Salvatore Ferragamo and Prada. And always top-of-the-range are five out of 10 of the top performers in profitability (EBIT), including Prada and Tod's”.
As has been the case for some years, company size is confirmed as decisive: the largest companies (turnover over 5 million euro) obtained the best results in terms of profitability on investments (Roi at 15,6% compared to 13,6% of those with turnover between 1 and 5 million and 8 % of those who invoice less) and operating profit (13,3% against, respectively, 11,7% and 5%).
The overall best performing segment turned out to be that of leather goods.
Attachments: The recovery of luxury.pdf
