Versace Group returns to profit in 2011 but remains cautious of 2012
Versace reports a return to profit in 2011 however remains “cautiously optimistic“ for 2012, according to a statement of the company, which lhad aunched a major restructuring in late 2009 through the elimination of approximately 250 positions, or a quarter of its workforce as well as closure of operations in Japan. Versace Group posted a net profit of 8.5 million euros in 2011 against a net loss of 21.7 million in 2010.
Its gross operating profit (EBITDA) jumped on his side from 73% to € 38.7 million while its turnover increased by 16.4% to 340.2 million. “We are very pleased with these results,” commented the CEO of Versace, Gian Giacomo Ferraris, said in the statement. “When we announced the restructuring in 2009, we expect (the return of) profitability in late 2011 and modest growth in income. We went well beyond expectations,” he added.
“The strong cash generation enabled Versace start investing for growth and at the same time reducing debt“, which stood at 29.5 million euros at end 2011, the group added. In terms of outlook, Versace said he was “cautiously optimistic for 2012“, the year began with a “strong growth“ in sales in its stores in the first quarter, and confirms its objective of a “double-digit annual growth for three coming years. “
adapted from AFP