ITALY: Benetton issues full-year profit warning
Retailer United Colours of Benetton today (1 February) issued a profit warning, saying that it expects full year profit to be down by more than 30% on the previous year.
The company said it now expects full-year net income to reach EUR70m, down from EUR102m last year. It blamed the decline on pressure on margins due to increasing raw material prices. It also said it worked to mitigate the costs and rationalise expenses.
Revenue is seen in-line with last year's at EUR2bn.
Following the announcement, trading in the company's shares was suspended.
There have been reports today that the Benetton family is looking at an offer to delist the company. It is reportedly considering an offer with its investment firm Edizione Srl.
There were also talk that Benetton was in merger talks with Spanish retail giant Inditex.
Benetton has not yet responded to requests for comment.
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