Good news for Gianni Versace SpA which closes 2011 returning to profit, thanks above all to the strong increase (+16,4%) of core revenues, which went from 292,3 million euros in 2010 to 340,2 million euros today. Retail sales reached 161,7 million, with a growth of 17,3%, while wholesale sales also increased, settling at 142,6 million (+22,5%).
On the other hand, royalties decreased from 38,1 million euros in 2010 to 35,9 million. The gross operating margin was very good, growing by 73% to 38,7 million. Finally, compared to the loss of 21,7 million in 2010, net income showed an overall improvement of 30,2 million, settling at 8,5 million.
Thanks to the clear growth in revenues, therefore, the company was able to continue the renovation work started in 2009. As Gian Giacomo Ferraris, CEO of Versace Spa recalls, “we had forecast profitability at the end of 2011 and modest growth in revenues. We went far beyond our expectations."
The fashion company has so resumed investing for its future, launching new lines such as Young Versace, Versus and Atelier Versace, while reducing the net debt, which now stands at 29,5 million euros. For the 2012 Ferraris declared himself cautiously optimistic, advancing the hope that any slowdown in the luxury industry feared by analysts could be offset by expansion into new markets.
