Versace Suffers Loss in 2010 But Beats Own Forecast
Italy's Versace luxury group said Tuesday it suffered a net loss in 2010 in the face of a restructuring plan but beat its own forecasts and banks on returning to profit this year.
"As expected, the company registered a loss in 2010," Versace said in a statement, without specifying the extent of the loss.
However, it said it had returned to an operating profit, with core earnings before interest, taxes, depreciation and amortization coming in at 22.3 million Euros ($31.4 million) against a loss of 2.4 million Euros in 2009.
The luxury group said sales rose by 9.1 percent in 2010 to 292.3 million Euros.
Meanwhile the group's debt had dropped to 30.5 million Euros from 80.2 million in 2010.
"When we announced the restructuring plan 18 months ago, we had predicted stable sales with a 13.3 million Euros margin. Today's numbers are much more positive," Versace chief executive Gian Giacomo Ferraris said.
The plan called for the closure of 250 shops, about a quarter of total sales points.
The maker of luxury clothing and accessories saw sales drop from 336.3 million Euros in 2008 to 268 million Euros in 2009.
The global financial crisis severely dampened demand for luxury goods throughout 2009 as consumers postponed purchases or traded down for cheaper alternatives.
The group, which had closed shops in Japan in 2009 as part of the restructuring plan, said it would be opening new shops in the country from this autumn.
Source: Agence France Presse
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