ITALY: Higher costs, lower sales weigh on Benetton FY
Italian fashion firm Benetton Group SpA has blamed higher raw material costs and a slowdown in consumer spending in the Mediterranean area for a 28.4% drop in full-year profit.
The result confirms a profit warning issued last month, and sees net income for the year fall to EUR73m (US$95.4m) from EUR102m last time. Revenues fell 1% to EUR2.03bn from EUR2.05bn the year before.
The company said it had taken steps to limit the fall in sales and accelerate growth in nearly all countries outside Europe.
Looking to the year ahead, Benetton said it expects "very limited" growth in its main markets in southern Europe, but forecasts "good sales performance" in emerging and high growth countries.
It also sees a slowdown in raw material price inflation, especially for cotton, "with potential positive effects" from the second half of the year. But overall, net income may fall slightly in 2012, it believes.
Meanwhile, the Benetton family is proceeding with plans to take the Italian clothing company private. Its Edizione Srl investment firm already owns a 67.08% stake in Benetton, and last month said it will offer EUR4.6 (US$6) per share or a total of EUR276.6m, for the remaining shares.
While cities such as Milan, Paris, New York and London have historically been seen as the global 'fashion hubs' - acting as meeting spots for high-end designers, fashion shows, luxury retail outlets a...
- TPP tariff phase-out guides Vietnam sourcing plans
- Why fast fashion isn't a case of one size fits all
- How Central America garment sourcing measures up
- How virtual garments could shape fashion retail
- Brexit Trade Focus – How a CANZ-UK FTA stacks up
- Ethiopia opens flagship textile and apparel park
- VF confident on "solid" sustainability roadmap
- VF Corp cuts guidance as Q2 profit plunges 70%
- Inditex and Lenzing sign textile waste pact
- EU and US dispute China raw materials duties
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- World Textile and Apparel Trade and Production Trends: the EU - June 2016
- Luxury Goods Retailing in Europe, 2014-2019 ; Market & Category Expenditure and Forecasts, Trends, and Competitive Landscape
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis