VERSACE reports losses of EUR 50 million

Gianni Versace SpA announced this week its consolidated financial results for 2009, which indicate a strong decrease in its turnover of up to 50 million compared to 2008. The net operational profit recorded a loss of EUR 2,4 million in 2009 compared with the previous year.

The group blames the negative results on the decrease in licencing revenues especially from Ittierre Group currently under bankruptcy protection. The company’s CEO remains positive estimating that the group will return to profits in 2011, thanks to an extensive restructuring which began earlier this year. Some of the restructuring measures included laying off up to 25% of staff, closing stores in Japan and relocating production facilities. The company also expects sales to improve in USA and Asia due to the valuation of the EURO.