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Versace makes a loss but sales grow

Italian fashion house Versace grew revenues 9.1% to €292.3m (£257m) in 2010, but charted a net loss due to restructuring costs.

Versace said it significantly beat its revenue forecasts for the period.  Wholesale sales were up 15% to €116.4m (£102.4m), while sales from its wholly-owned stores were up 9.9% to €137.9m (£121.3m).

The group did not reveal the extent of the net loss but said it was in line with its business plan and reflected the costs of a major structural overhaul. The restructure, which started 18 months ago, has involved the loss of 350 jobs worldwide and an ongoing review of its logistics network and production facilities.

EBITDA for the year grew to €22.3m (£19.6m), and Versace said this was down to positive sales performance, improved margins and rigorous cost control.

Versace chief executive Gian Giacomo Ferraris said: “When we announced a significant restructuring of Versace 18 months ago we expected 2010 sales to remain flat and a recovery in EBITDA to €13.3m. The figures we have published are significantly better than that, with EBITDA some 68% ahead of forecast.”

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