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Versace's global revenues surge 20%

Luxury label Versace saw gloabl revenues climb by 20% last year, with US representing the designer’s fastest-growing market.

Versace recorded sales of E408.7m (£344m) for the 2012 calendar year, with currency-adjusted EBITDA up 15% to E44.5m. Before adjustments, EBITDA rose 20% to E46m, while net profit was E8.5m, up from E7.9m in 2011.

Retail sales through Versace’s directly operated shops rose 39% to E224.5m, with the wholesale arm up a more muted 5% to E149.4m. Royalties were steady at E34.9m.

The US drove much of the label’s growth, with sales across both retail and wholesale up 46%. Asia followed close behind with growth of 38%. Only Europe produced a single-figure increase of 7%.

The business said its results demonstrated the continued “turnaround in the company’s profitability that was reported a year ago”.

Chief executive Gian Giacomo Ferraris said the brand’s US performance was “particularly encouraging”.

He added: “We are confident in our strategy for the company, which already delivered more than 50% growth over the last three years. 

“In 2012 we underlined our commitment to the development of the business with enhanced capital investment in new product lines and penetration of new markets.  As our business benefits from this investment it will free up more capital for expansion.”

Over the course of the year Versace invested E25m in new beachwear and underwear lines, as well as its ecommerce infrastructure, and developing its Young Versace, Atelier Versace and Versus divisions. In terms of geography, investment was channelled mainly into Hong Kong, China, Malaysia, the US, Europe and Brazil.

Ferraris said the current year had “got off to an encouraging start” noting retail growth was 20% in the first quarter.

“In the absence of unforeseen circumstances we remain optimistic for the business and expect to achieve our strategic ambitions ahead of plan,”  he added.

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