Troubled Italian fashion group Marzotto SpA on Monday posted a 36 per cent year-on-year plunge in third quarter net profit to $52 million.

The company said in a statement operating profit slipped 14.5 per cent year-on-year to $101m as it was hit by falling profits at German fashion giant Hugo Boss and a $3m loss by Valentino.

It added net consolidated sales slipped 2.4 per cent to $557m from $571m in the same period of 2001.

Shares in Marzotto have lost up to a fifth of their value recently after a failed takeover bid by industrial holdings company Zignago, which is controlled by the same family as Marzotto.

Marzotto said last month its full-year net profit would be similar to last year’s once Valentino's losses and capital gains from sales of real estate and non-core assets have been taken into account.